Glossary of Municipal Securities Terms

TAX

Compulsory charge levied by a government unit for the purpose of raising revenue. Taxes are imposed under a government’s taxing power and are distinguishable from special assessments, which are levied according to the benefits received, and from fees, which bear a reasonable relation to the costs of administration, services provided or regulation. See: AD VALOREM TAX; EXCISE TAX. Compare: SPECIAL ASSESSMENT.

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