Tax levy

A tax levy is the imposition of a tax by a governmental entity, such as a city, county, state, or federal government. It refers to the process of officially assessing and demanding payment of taxes from individuals or businesses. The term often describes the total amount of revenue that a government seeks to raise through taxation in a specific period, typically a fiscal year.

The tax levy specifies the amount of money needed to fund government operations and services, including public education, infrastructure, public safety, and social welfare programs. It is generally determined by considering the projected expenditures of the governmental entity and the expected revenue from other sources.

A tax levy can apply to various types of taxes, including property taxes, income taxes, sales taxes, and excise taxes. The specific procedures for establishing and implementing a tax levy vary depending on the jurisdiction and the type of tax involved.

The term "tax levy" can also refer to a legal action where the government seizes property or assets to satisfy an outstanding tax debt. This is often the final step in a tax collection process when a taxpayer has failed to pay taxes owed despite previous notices and demands. In this context, the levy serves as a forced collection mechanism to ensure tax compliance.