License Tax (Noun)
Meaning
A fee paid to the government for the privilege of being licensed to do something (as selling liquor or practicing medicine).
Classification
Nouns denoting possession and transfer of possession.
Examples
- The state requires a hefty license tax from anyone who wants to operate a liquor store within its borders.
- In addition to the initial application fee, lawyers also have to pay a yearly license tax to practice law in the state.
- Restaurants that want to serve liquor have to pay a significant license tax each year, which is often factored into the prices on their menus.
- The license tax for physicians is waived for those who agree to practice in underserved areas for at least five years.
- Business owners who fail to pay their license tax on time may face penalties and even have their business licenses revoked.