Legal Definitions - occupational tax

An occupational tax is a type of tax that is imposed on individuals or businesses based on their occupation or profession. This tax is usually paid to the local government and is used to fund public services and infrastructure.

• Business License Tax: A tax that is imposed on businesses for the privilege of operating within a particular jurisdiction.
• Professional License Tax: A tax that is imposed on individuals who hold professional licenses, such as doctors, lawyers, and accountants.
• Occupational Privilege Tax: A tax that is imposed on individuals who work within a particular jurisdiction, regardless of their profession.

These examples illustrate how occupational taxes can vary depending on the jurisdiction and the type of occupation or profession. They also show how occupational taxes can be used to generate revenue for local governments.