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Show PAGE TNI FOUR OPINION NO. 71-0- 20 DAILY v To Robert L. Newey, Weber County Attorney Assistant Attorney General permitted to is the registration fee of $5.00 town chapter 23, Title L. 1971, chapter city or or under a tax? and "tax ways a "fee" levy.11) I Carbon County, 90 Utah 560, 63 P.2d 259, the fact that the legislature has character ized them as fees is not controlling if the burden sought to be imposed on estates is devoid of the essential characteristics of a fee. The adjudicated cases define the fee of an officer as 'reward or compensation allowed by law to an officer for specific services performed by him in the discharge of his official duties."1 "The mere Consequently the fact that the legislature has used the word "fee" and also the word "tax is not conclusive. The solution depends upon the character of the charge made. In Stewart v. Verde River Irrigation & Power Diet.. 68 P.2d 329, 49 Ariz. 531, the court defined the distinction between "The word 'fee' is defined to be a fee and a tax as follows: 'a charge fixed by law for the service of a public officer1, while a 'tax' is 'a forced contribution of wealth to meet the public needs of the government.1 Webster's New International Dictionary. The distinction between the two is very plain. A tax is imposed upon the party paying it by mandate of the public authorities without his being consulted in regard to its necessity, or having an option as to its payment. The amount is not determined by any reference to the service which he receives from tho government, but by his ability to pay based on property or income. On the other hand, a fee is always voluntary in the sense that the party who pays it originally has of his own volition ashed a public officer to perform certain services for him, which precumnLly upon him a benefit not shared by other members of society." In State v. Wisconsin Construction. 268 N.W. 238, 222 "The distinction between taxes and Wis. 279, the court says: fees is quite clear. Taxes are the enforced proportional contributions from persons and property levied by the stato by The question of whether this is important to a tax Or registration fee becomes Weber County where many military personnel Who mai- legal domicle in other states are exempt from tax on motor vehicles, but are not exempt from paying a registration fee for any vehicle in the State of Utah. virtue of its cove reign ty for the support of government and for all public needs. Taxes are imposed for the purposo of general revenue. License cc oLhor fees are ordinarily imposed to cover the cost and expense of supervision or regulation." ntain a a The court quoted from Cob lev on Taxation (4th Ed.), p. 3511, 3513, 3528: "if revenue is the primary purpose and regu lation is merely incidental the imposition is a tax. If the purpose is regulation the imposition ordinarily is an exercise of the police power, while if the purpose is revenue the imposition is an exercise of the taxing power and is a tax." A R A state or its The foregoing is a quote from Stato ex rel. Fargo v. Wetz, , 168 N.W. 835, 5 A.L.R. 731, wherein the court hold N.D. a motor vehicle registration fee of $6.00 in lieu of 124 N.Y.S. 2d 473, the burdens of a pecuniary two." In Gunby v. Yates, 102 S.E. 2d 548, 214 Ga. 17, the court held $1.00 foe to be collected by the ordinary fojr each marriage license sold to be placed in a fund for the retirement of ordinaries was a tax and not a fee although called a fee in'the statute. The court says: "A tax is an enforced contribution exacted pursuant to legislative authority for tho purpose of raising revenue to be used for public or governmental purposes and not as payment for special privilege or a service rendered. As a general rule, fees prescribed for public officers are not a taxes but compensation for particular services, unless the object and purpose of the charge is to provido general revenue rather - all taxes general or local, tho proceeds to bo expended on improvement of highways, was a tax and not a fee. of the Local Vehicle Registration Act See. states: "It is the purpose of this act to provide tho counties and municipalities of the state with an additional source of revenue for the enforcement of state motor vehicle and traffic laws."' 41-23- -2 county, city and town may levy vehicle registration fee in accordance with this act; provided that no city or town may initiate such a tax levy until the county within which it is situated has initiated a local vehicle registration fee pursuant to this act." Sec. 41-23- provides: -3 a "Any provides that the county assessor shall the collect local registration fee at the time of collecting the personal property tax and the owner may have such fee listed with his personal property tax with the real property of the Sec. 41-23- -6 vehicle owner. -2 tho imposition the express language of Sec. of this charge is for the purpose of providing the local authorities with additional revenue for the enforcement of state motor vehicle and traffic laws. This is clearly a charge made to carry on governmental functions and has no relation to the payment for any services rendered the vehicle owner by any local agency or officer. Any benefits to him are "merged in the. general benefit" resulting from the enforcement of the state motor 41-23- By vehicle and traffic laws. -4 In addition Sec. provides: "Any county, city or town regulation or ordinance adopted pursuant to this act shall impose a local motor vehicle registration fee of $5.00 on all 41-23- registered under, specifying certain sections of the statutes, "and shall contain provisions in substance as follows: (1) A provision defining the vehicles subject to this act... (2) A provision that the local motor vehicle registration fee imposed by the county shall apply to all motor vehicles, the situs of taxation of which is within the county... (3) A provision that apy motor vehicle subject to the local vehicle registration fee; within a county shall be entitled to a credit against a county; fee of all local vehicle registration fees paid on said vehicle .in a bity or town pursuant to a local motor registration fee ordinance imposing the motor vehicle registration fee within said city or town." motor vehicles The language of this section indicates x.nat the charge imposed upon the vehicle and not upon the owner as a charge is for services rendered. This language of this section is entirely which provides for a registration different from Sec. 41-1-1- 27 fee as follows: L court says:. Griffiths, im- -, are taxes nature "Generally speaking, posed generally upon individuals or property for defraying the cost of governmental functions, while, on the other hand, charges are sustainable as fees where they are imposed upon a person to defray or help defray the cost of particular services rendered for his account. This is tho general distinction between the' In Hannon v. distinction between a fee and a tax is one not alobserved with nicety in judicial decisions, but any payment I registration charge, even thougn denominated f ee,is j jtax jsnd not a fee. In Smith v. court said: effect is the decision in State v. Montevallo municipal subdivisions as a contribution toward the cost of maintaining governmental functions, where tho special benefits derived from their performance are merged. in the general benefit is. a tax." The a same exacted by the (The chapter denominates the charge as both the "The 41, U.C.A. 1953, enacted by 91, a fee OCTOBER 20. 1971 Coal Mining Co.. 197 So. 82, 29 Ala. App. 318. In Dickson v. Jefferson County Board of Education, 225 S.W. 2d 673, 31 Ky. 781, the court quotes from 51 Am.Jur., Fees, Section 12, as follows: Vernon B. Romney, Attorney General bo imposed by a county, WEDNESDAY, than compensation for services rendered. A fee is a charge fixed by law as compensation for a pubic officer, while a tax is a forced contribution to the public needs of government. ... If a fee is intended to raise revenue its exaction is an exercise of the power of taxation." September 29, 1971 Ilomer Holmgren, IICORD "There shall be paid to the department for the registra- ... tion of every motor vehicle... at the time of registration (b) a motor registration fee of $5.00 for the vehicle," etc. registration of every Sec. imposes a tax "to be known as the automobile driver education tax. Said taJc shall bo ono dollar. upon every 41-1-- 144 motor vehicle, lar etc. Here is a tax of "one-dollevied for 'a governmental purpose and having no relation to services rendered the vehicle owner and is similar Lo the charge imposed by Sec. 41-23- " -- -4. conclude, therefore, under the authorities above cited, that the registration charge authorized by chapter 23, We Title 41, even though denominated a fee, is a tax and not a fee. Respectfully submitted, VERNON B. KUMNESf Attorney General |