Definition:

Exemption is the act of exempting something from a particular tax, fee, or regulation. It is a legal privilege that exempts a person or object from paying a particular tax or being subject to a particular regulation.

Examples:

• Property tax exemption: Exempts certain categories of property, such as churches, charities, and historical landmarks, from paying property taxes.
• Sales tax exemption: Exempts certain items, such as food, medicine, and educational supplies, from sales tax.
• Income tax exemption: Exempts certain income sources, such as Social Security benefits and certain scholarships, from income tax.

Reasons for Exemption:

• Public policy: To provide relief to certain groups or individuals based on public policy goals.
• Social equity: To ensure fairness and prevent discrimination based on economic circumstances or other factors.
• Economic efficiency: To promote economic growth or reduce administrative costs.
• Religious beliefs: To accommodate religious practices or beliefs.

Legal Basis:

Exemptions are typically granted by law, often through legislation or regulations. The specific exemptions and criteria for eligibility are defined in law.

Example Legislation:

“`Section 23 of the Tax Code: Exemptions for Certain Property.

(a) The following property is exempt from property tax: * Churches * Charitable organizations * Historical landmarks“`

Additional Notes:

• Exemptions can be permanent or temporary.
• The exemption process can be complex and involve various factors.
• Exemptions can have a significant impact on the affected individuals or organizations.
• Changes to exemptions require legislative action and are often subject to public debate.