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tax-exempt

tax-exempt

6 4.5
A bond whose interest you do not have to pay tax on
  • noun
  • /tæks ɪɡˈzɛmpt/
  • Specialized
translation icon : valor exento de impuestos
  • Many charitable organizations benefit from their tax-exempt status, allowing them to operate without the burden of federal taxes.
  • tax-exempt status
  • tax-exempt organizations
  • tax-exempt bonds

Examples

  • In the not-for-profit sector, the threatened loss of tax-exempt status has promoted increased community service by healthcare organizations.

    Academic text (1993)
  • Foundations' legal existence as a tax-exempt institution requires them to provide a public benefit.

    Academic text (2016)
  • Foundations as civil society actors receive tax-exempt status because they provide public benefits to solve public problems.

    Academic text (2016)
  • The U.S. Chamber of Commerce is a tax-exempt organization that advocates for the American business community at large.

    Academic text (2017)
  • Federal law placed no restrictions on the purposes for which tax-exempt bonds could be issued until 1968.

    Academic text (1998)
  • Take, for example, Revenue Ruling 73-105, which involved gift shop sales at a tax-exempt art museum.

    Academic text (2017)
  • Violating this section of the tax code can result in revocation of an organization's tax-exempt status and financial penalties.

    Academic text (2011)
  • The worst-case scenario for not-for-profit hospitals is the potential loss of their tax-exempt status under federal law.

    Academic text (1993)
  • The IRS generally classifies organizations as one or the other immediately upon conferring tax-exempt status.

    Academic text (2017)
  • As noted by Gale (1991), tax-exempt borrowing also provides federal credit subsidies via the tax code.

    Academic text (2016)

Synonyms

tax-exempt security
vstax-exempt
  • Specialized
6.5

A bond or note whose interest income is not taxed

is the same but explicitly lists federal state and local tax exemptions

Surface Forms

tax-exempt singular
tax-exempts plural

Morphology

tax-exempt = tax-exempt (transparent) = tax + exempt

The noun is a zero-derived use of the adjective 'tax-exempt', whose meaning is directly compositional from 'tax' + 'exempt'.

Etymology

Tax-exempt used as a noun comes from the same parts, with ex- meaning 'out' (like exit) and empt meaning 'taken', so it literally means 'taken out of tax'. That is why a tax-exempt such as a bond is a security whose income you do not pay tax on.