Tax Sharing
/ˈtæks ˈʃɛərɪŋ/
Definitions
- (n.) An arrangement between governmental units or entities to allocate tax revenues or tax burdens among them according to agreed terms.
The tax sharing agreement ensured the city received a portion of the state’s sales tax revenue.
- (n.) A contractual provision requiring one party to reimburse another for taxes paid or to share tax liabilities arising from a transaction.
The merger agreement contained a tax sharing clause to allocate tax payments between the parties.
Forms
- tax sharing
Related terms
See also
Commentary
Tax sharing most commonly arises in municipal finance and transactional contract contexts; clarity in allocation terms is critical to avoid disputes over tax liabilities.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.