The intangible tax is a tax imposed on the ownership of intangible property, which includes assets such as stocks, bonds, money market funds, and bank account balances. This tax is levied on the privilege of owning, transferring, and bequeathing these types of assets. It is important to note that the intangible tax is a local tax, meaning it is collected by local governments for local purposes.
Intangible tax is primarily relevant in the context of local taxation laws. It applies to individuals and entities that own intangible assets. Legal practitioners may encounter this tax in civil matters, particularly in estate planning and asset management. Users can manage their intangible tax obligations by utilizing legal templates provided by platforms like US Legal Forms, which can help in preparing necessary documentation.
Here are a couple of examples of abatement:
For example, if an individual owns stocks valued at $50,000 and lives in a jurisdiction that imposes an intangible tax, they may be required to pay a percentage of that value as tax. Another example (hypothetical example) could involve a person who inherits a bank account balance of $30,000; they may also be subject to the intangible tax based on local laws.
| State | Intangible Tax Status |
|---|---|
| Florida | No intangible tax |
| Georgia | Imposes an intangible tax on certain assets |
| Ohio | Imposes an intangible tax on stock and bonds |
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
If you own intangible assets and are unsure about your tax obligations, consider the following steps:
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