Compulsory charges levied by a governmental unit for the purpose of raising revenue.  Taxes are different from Special Assessments, which are levied according to the actual benefits derived by the assessed party and from fees, which must bear a reasonable relation to the costs of services, administration or regulation and are imposed under a government’s police power.

See Also

Shamberg Powers

The powers identified in Commissioner v. Shamberg’s Estate, 144 F.2d 998 (2d Cir. 1944) as the powers used to identify what is a political subdivision of a state or local governmental entity in the United States, specifically, the power of eminent domain, the power to tax, and the police power.

Taxable Bond

A bond, the interest on which is not excludable from gross income for federal income tax purposes.

Tax-Exempt Bonds

A bond, the interest on which is excludable from gross income for federal income tax purposes.

Special Assessment

A charge imposed against properties in a designated district in respect of special benefits received by those properties from the construction of nearby or adjacent public improvements, separate and apart from the general benefit accruing to the public at large.

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Subordinate Lien Bonds

Bonds having a subordinate claim on one or more security interests relative to the claim against such security interests by the holders of other bonds, also known as “junior lien bonds.”