What does an intangibles tax apply to?

The intangibles tax specifically applies to intangible assets, which are non-physical assets that hold value but do not have a direct physical presence. This includes items such as stocks, bonds, and trademarks. These assets represent ownership of value rather than tangible property or items that can be touched.

The rationale behind taxing intangible assets is to recognize the economic value they contribute, even though they don't take a physical form. In contrast, real estate properties and physical assets, which are covered under other types of taxes like property taxes, do not fall under the scope of an intangibles tax. Similarly, cash assets are generally treated in distinct tax contexts and not specifically as intangible assets.

By focusing on intangible assets, this type of tax addresses the growing importance of financial instruments and intellectual property in the economy, which are increasingly relevant in financial discussions and assessments.