What best defines an intangibles tax?

An intangibles tax is specifically levied on non-physical assets, which include items like stocks, bonds, intellectual property, and other financial instruments that do not have a physical presence. This type of tax is designed to capture the value of assets that are not tangible in nature but still represent significant wealth, thus contributing to state and local tax revenues.

The context of intangibles tax is important to understand why this definition is accurate. Unlike taxes on tangible personal property or physical assets, which refer to items like real estate and equipment that can be seen and touched, the intangibles tax focuses on the value inherent in assets that exist in a conceptual form. These non-physical assets often play a crucial role in the economy, and taxing them helps to ensure that a fair share of revenue is collected from individuals and businesses that hold significant wealth in these forms.