Legal Definitions - service-occupation tax

A service-occupation tax is a type of tax imposed by the government on certain services or occupations to generate public revenue. Taxes can be imposed on individuals, entities, transactions, or property.

• Accrued tax: A tax that has been incurred but not yet paid or payable.
• Accumulated-earnings tax: A penalty tax imposed on a corporation that has retained its earnings in an effort to avoid the income-tax liability arising once the earnings are distributed to shareholders as dividends.
• Admission tax: A tax imposed as part of the price of being admitted to a particular event.

These examples illustrate how taxes can be imposed on different things, such as income, property, or specific events. The service-occupation tax specifically targets certain services or occupations, such as a tax on legal services or a tax on businesses in a certain industry.