Non-tax revenue
Encyclopedia
Non-tax revenue or non-tax receipts are government revenue
not generated from taxes
. Examples include:
Government revenue
Government revenue is revenue received by a government. Its opposite is government spending. Government revenue is an important part of fiscal policy....
not generated from taxes
Tax
To tax is to impose a financial charge or other levy upon a taxpayer by a state or the functional equivalent of a state such that failure to pay is punishable by law. Taxes are also imposed by many subnational entities...
. Examples include:
- Aid from another level of government (intragovernmental aid) - for example, in the United States, federal grants may be considered non-tax revenue to the receiving statesU.S. stateA U.S. state is any one of the 50 federated states of the United States of America that share sovereignty with the federal government. Because of this shared sovereignty, an American is a citizen both of the federal entity and of his or her state of domicile. Four states use the official title of...
, and equalization payments - Aid from abroad (foreign aid)
- TributeTributary stateThe term tributary state refers to one of the two main ways in which a pre-modern state might be subordinate to a more powerful neighbour. The heart of the relationship was that the tributary would send a regular token of submission to the superior power...
or indemnities paid by a weaker state to a stronger one, often as a condition of peace after suffering military defeat. The war reparationsWar reparationsWar reparations are payments intended to cover damage or injury during a war. Generally, the term war reparations refers to money or goods changing hands, rather than such property transfers as the annexation of land.- History :...
paid by the defeated Central PowersCentral PowersThe Central Powers were one of the two warring factions in World War I , composed of the German Empire, the Austro-Hungarian Empire, the Ottoman Empire, and the Kingdom of Bulgaria...
after the First World War offer a well-known example. - Revenue from state-owned enterprises (for example, revenue from state-owned liquor storesAlcoholic beverage control stateAlcoholic beverage control states, generally called control states, are those in the United States that have state monopoly over the wholesaling and/or retailing of some or all categories of alcoholic beverages, such as beer, wine, and distilled spirits....
) - Revenue (including interestInterestInterest is a fee paid by a borrower of assets to the owner as a form of compensation for the use of the assets. It is most commonly the price paid for the use of borrowed money, or money earned by deposited funds....
or profitProfit (accounting)In accounting, profit can be considered to be the difference between the purchase price and the costs of bringing to market whatever it is that is accounted as an enterprise in terms of the component costs of delivered goods and/or services and any operating or other expenses.-Definition:There are...
) from investment fundsCollective investment schemeA collective investment scheme is a way of investing money alongside other investors in order to benefit from the inherent advantages of working as part of a group...
(collective investment schemes), sovereign wealth fundSovereign wealth fundA sovereign wealth fund is a state-owned investment fund composed of financial assets such as stocks, bonds, property, precious metals or other financial instruments. Sovereign wealth funds invest globally. Some of them have grabbed attention making bad investments in several Wall Street financial...
s, or endowmentFinancial endowmentA financial endowment is a transfer of money or property donated to an institution. The total value of an institution's investments is often referred to as the institution's endowment and is typically organized as a public charity, private foundation, or trust....
s - Revenues from sales of state assetAssetIn financial accounting, assets are economic resources. Anything tangible or intangible that is capable of being owned or controlled to produce value and that is held to have positive economic value is considered an asset...
s - RentsEconomic rentEconomic rent is typically defined by economists as payment for goods and services beyond the amount needed to bring the required factors of production into a production process and sustain supply. A recipient of economic rent is a rentier....
, concessionsConcession (contract)A concession is a business operated under a contract or license associated with a degree of exclusivity in business within a certain geographical area. For example, sports arenas or public parks may have concession stands. Many department stores contain numerous concessions operated by other...
, and royaltiesRoyaltiesRoyalties are usage-based payments made by one party to another for the right to ongoing use of an asset, sometimes an intellectual property...
collected by the state when it contractContractA contract is an agreement entered into by two parties or more with the intention of creating a legal obligation, which may have elements in writing. Contracts can be made orally. The remedy for breach of contract can be "damages" or compensation of money. In equity, the remedy can be specific...
s out the right to profit from some good or service to a private corporation. An example are contracts for resource extractionResource extractionThe related terms natural resource extraction both refer to the practice of locating, acquiring and selling natural resources....
(for such natural resourceNatural resourceNatural resources occur naturally within environments that exist relatively undisturbed by mankind, in a natural form. A natural resource is often characterized by amounts of biodiversity and geodiversity existent in various ecosystems....
s as mineralMineralA mineral is a naturally occurring solid chemical substance formed through biogeochemical processes, having characteristic chemical composition, highly ordered atomic structure, and specific physical properties. By comparison, a rock is an aggregate of minerals and/or mineraloids and does not...
s, timberTimberTimber may refer to:* Timber, a term common in the United Kingdom and Australia for wood materials * Timber, Oregon, an unincorporated community in the U.S...
, petroleumPetroleumPetroleum or crude oil is a naturally occurring, flammable liquid consisting of a complex mixture of hydrocarbons of various molecular weights and other liquid organic compounds, that are found in geologic formations beneath the Earth's surface. Petroleum is recovered mostly through oil drilling...
and natural gasNatural gasNatural gas is a naturally occurring gas mixture consisting primarily of methane, typically with 0–20% higher hydrocarbons . It is found associated with other hydrocarbon fuel, in coal beds, as methane clathrates, and is an important fuel source and a major feedstock for fertilizers.Most natural...
, or marine resources) collected privately under license from state-owned lands - Fines collected and assets forfeituredAsset forfeitureAsset forfeiture is confiscation, by the State, of assets which are either the alleged proceeds of crime or the alleged instrumentalities of crime, and more recently, alleged terrorism. Instrumentalities of crime are property that was allegedly used to facilitate crime, for example cars...
as a penaltySanctions (law)Sanctions are penalties or other means of enforcement used to provide incentives for obedience with the law, or with rules and regulations. Criminal sanctions can take the form of serious punishment, such as corporal or capital punishment, incarceration, or severe fines...
. Examples include parking finesParking violationA parking violation is the act of parking a motor vehicle in a restricted place or for parking in an unauthorized manner. It is against the law virtually everywhere to park a vehicle in the middle of a highway or road; parking on one or both sides of a road, however, is commonly permitted....
, court costsCourt costsCourt costs are the costs of handling a case, which, depending on legal rules, may or may not include the costs of the various parties in a lawsuit in addition to the costs of the court itself. Court costs can reach very high amounts, often far beyond the actual monetary worth of a case...
levied on criminal offendersCrimeCrime is the breach of rules or laws for which some governing authority can ultimately prescribe a conviction... - FeeFeeA 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 payment, salary, or wage, and would often use guineas rather than pounds as units of account...
s for the granting or issuance of permits or licensesLicenseThe verb license or grant licence means to give permission. The noun license or licence refers to that permission as well as to the document recording that permission.A license may be granted by a party to another party as an element of an agreement...
. Examples include vehicle registration plateVehicle registration plateA vehicle registration plate is a metal or plastic plate attached to a motor vehicle or trailer for official identification purposes. The registration identifier is a numeric or alphanumeric code that uniquely identifies the vehicle within the issuing region's database...
permits, vehicle registrationVehicle registrationVehicle registration is the compulsory registration of a vehicle with a government authority. Vehicle registration's purpose is to establish clear ownership and to tax motorists or vehicle owners....
fees, watercraftWatercraftA watercraft is a vessel or craft designed to move across or through water. The name is derived from the term "craft" which was used to describe all types of water going vessels...
registration fees, building fees, driver's licenseDriver's licenseA driver's license/licence , or driving licence is an official document which states that a person may operate a motorized vehicle, such as a motorcycle, car, truck or a bus, on a public roadway. Most U.S...
s, hunting and fishing licensesHunting licenseA hunting license is a regulatory or legal mechanism to control recreational and sports hunting.Hunting may be regulated informally by "unwritten law", "self restraint", or "morality" and by laws "enforced by government authority."...
, fees for professional licensingLicensureLicensure refers to the granting of a license, which gives a "permission to practice." Such licenses are usually issued in order to regulate some activity that is deemed to be dangerous or a threat to the person or the public or which involves a high level of specialized skill...
, fees for visasVisa (document)A visa is a document showing that a person is authorized to enter the territory for which it was issued, subject to permission of an immigration official at the time of actual entry. The authorization may be a document, but more commonly it is a stamp endorsed in the applicant's passport...
or passportPassportA passport is a document, issued by a national government, which certifies, for the purpose of international travel, the identity and nationality of its holder. The elements of identity are name, date of birth, sex, and place of birth....
s, fees for demolitionDemolitionDemolition is the tearing-down of buildings and other structures, the opposite of construction. Demolition contrasts with deconstruction, which involves taking a building apart while carefully preserving valuable elements for re-use....
, rezoning, and land gradingLand gradingGrading in civil engineering and construction is the work of ensuring a level base, or one with a specified slope, for a construction work such as a foundation, the base course for a road or a railway, or landscape and garden improvements, or surface drainage...
(which causes siltSiltSilt is granular material of a size somewhere between sand and clay whose mineral origin is quartz and feldspar. Silt may occur as a soil or as suspended sediment in a surface water body...
), and sometimes for increasing stormwaterStormwaterStormwater is water that originates during precipitation events. It may also be used to apply to water that originates with snowmelt that enters the stormwater system...
runoff, destroying native vegetationVegetationVegetation is a general term for the plant life of a region; it refers to the ground cover provided by plants. It is a general term, without specific reference to particular taxa, life forms, structure, spatial extent, or any other specific botanical or geographic characteristics. It is broader...
, and cutting-down healthy treeTreeA tree is a perennial woody plant. It is most often defined as a woody plant that has many secondary branches supported clear of the ground on a single main stem or trunk with clear apical dominance. A minimum height specification at maturity is cited by some authors, varying from 3 m to...
s. - User fees collected in exchange for the use of many public services and facilities. Tolls charged for the use of toll roadToll roadA toll road is a privately or publicly built road for which a driver pays a toll for use. Structures for which tolls are charged include toll bridges and toll tunnels. Non-toll roads are financed using other sources of revenue, most typically fuel tax or general tax funds...
s are an example - Donations and voluntary contributions to the state