User Fee

User Fee
A sum of money paid by the individual who chooses to access a service or facility. Examples of user fees include highway tolls, parking charges and national park entry fees. With user fees, the individual directly pays for something he wants and receives what he has paid for. In contrast, taxes must be paid by force and do not necessarily go toward a specific service or facility that an individual actually uses or benefits from.

MARGIN: 0in 0in 10pt; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto">Because user fees are more palatable than taxes, politicians may sometimes try to disguise taxes as user fees. However, sometimes the line between user fees and taxes is blurred, as in the case of gasoline taxes being used to fund the Interstate Highway System. Government services and facilities that are supported by user fees instead of by taxes more closely resemble private businesses because it is apparent whether a true demand exists for those services and facilities.

Investment dictionary. . 2012.

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  • user fee — UK US noun [C] ► TAX, GOVERNMENT in the US, a type of tax that is charged for the use of particular public services to help pay for them: »The proposal argued that regional transportation projects should be funded through user fees …   Financial and business terms

  • user fee — n AmE a tax on a service provided for the public …   Dictionary of contemporary English

  • user fee — noun : an excise tax often in the form of a license or supplemental charge levied to fund a public service called also user s fee * * * user fee, a fee charged for the use of a service: »With most data banks you pay an initial subscription charge …   Useful english dictionary

  • user fee — noun Date: 1967 an excise tax often in the form of a license or supplemental charge levied to fund a public service called also user s fee …   New Collegiate Dictionary

  • user fee — Charges imposed on persons for the use of a particular facility. A charge designed only to make the user of state provided facilities pay a reasonable fee to help defray the costs of their construction and maintenance may be constitutionally… …   Black's law dictionary

  • user fee — noun (C) AmE a tax on a service provided for the public …   Longman dictionary of contemporary English

  • Prescription Drug User Fee Act — The Prescription Drug User Fee Act (PDUFA) was a law passed by the United States Congress in 1992 which allowed the Food and Drug Administration (FDA) to collect fees from drug manufacturers to fund the new drug approval process. The Act provided …   Wikipedia

  • Fee — For other uses see Fee (disambiguation) A fee is the price one pays as remuneration for services. Fees usually allow for overhead, wages, costs, and markup. Traditionally, professionals in Great Britain received a fee in contradistinction to a… …   Wikipedia

  • fee — A fixed amount or a percentage of an underwriting or principal. Bloomberg Financial Dictionary * * * fee fee [fiː] noun 1. [countable] COMMERCE an amount of money paid to a professional person or organization for their services: • If you want… …   Financial and business terms

  • user's fee — noun see user fee * * * a fee charged for the use of something, as one charged by a city government for the use of one of its services, as garbage collection or fire protection. Also, user fee …   Useful english dictionary

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