Legal Definitions - stopgap tax

A stopgap tax is a type of tax imposed by the government on individuals, entities, transactions, or property to generate public revenue. It is a temporary measure taken to address a specific financial need or crisis.

• An additional tax imposed on luxury goods during a recession to generate revenue for the government.
• An admission tax imposed on tickets for a sporting event to fund the construction of a new stadium.

These examples illustrate how a stopgap tax is used to address a specific financial need or crisis. In the first example, the government imposes an additional tax on luxury goods during a recession to generate revenue to address the economic crisis. In the second example, an admission tax is imposed on tickets for a sporting event to fund the construction of a new stadium, which is a specific financial need.