Dictionary
Words, grammatical forms and meanings linked to the ontology.
sponge tax en · NOUN
Meanings
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(US, historical) An estate tax imposed by a state that was credited against the federal estate tax, raising revenue for a state without increasing the overall tax burden.
Following various versions of the Massachusetts estate tax in response to the changes in the Internal Revenue Code, in 2002, the Legislature amended § 2A to use a "sponge tax" calculation based upon the Federal credit for State death taxes that would have been allowable to a decedent's estate in 2000.
2020, Elspeth B. Cypher writing for the Supreme Judicial Court of Massachusetts in Shaffer v. Commissioner of Revenue, case number SJC 12812https://www.mass.gov/files/documents/2020/07/10/q12812.pdf
Forms