Thursday, May 5, 2011

Is it a tax or a fee?

Whether a government charge is a tax or a fee is of great importance under the state's requirement that tax increases receive a 2/3 vote for approval. Often the line between the two can be blurred, however, which is why it is good to have a bright line test to help clearly define if a proposed revenue increase is a tax or a fee. A recent ruling by the U.S. Government Accountability Office (GAO) provides a good cheat sheet to use. In a ruling yesterday declaring California's E-Waste Recycling Fee is in fact a tax and not a fee, GAO found . . . READ MORE


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