Legal Definitions - license fee

A license fee is a charge that a government imposes on individuals or businesses for the right to engage in a particular activity or occupation. It is also known as a license tax.

For example, a person who wants to operate a taxi service may be required to pay a license fee to the local government. Similarly, a business that wants to sell alcohol may need to pay a license fee to the state government.

These fees are typically used to regulate and monitor the activity or occupation in question. They may also be used to generate revenue for the government.