Legal Definitions - capitation

Capitation refers to a tax or fee levied as a fixed sum per person, meaning every individual subject to the charge pays the exact same amount, regardless of their income, wealth, or ability to pay. It is often referred to as a "head tax" or "poll tax."

• Example 1: Historical Government Levy

  Imagine a historical kingdom in the 17th century that needed to raise funds quickly to repair its aging infrastructure. The monarch decreed that every adult citizen over the age of 18, male or female, must pay a fixed sum of two shillings annually. This tax was applied uniformly across all social classes, from the poorest peasant to the wealthiest merchant.

  This illustrates capitation because each individual adult citizen was required to pay the identical amount of two shillings, irrespective of their personal wealth, income, or land ownership. The tax was literally "per head."

• Example 2: Modern Community Fee

  A small, self-governing residential community decides to implement an annual "public amenity maintenance fee" of $100. This fee is charged to every household resident aged 18 and above to cover the costs of maintaining shared facilities like the community pool, clubhouse, and private roads. The fee is the same for all adult residents, whether they are high-income earners or retirees on a fixed income.

  This is an example of capitation because the fee is a fixed amount ($100) applied equally to every adult resident. The amount does not vary based on an individual's financial situation or how frequently they use the amenities.

• Example 3: Healthcare Provider Payment Model

  In some modern healthcare systems, primary care physicians are paid a fixed amount per patient enrolled in their practice for a specific period (e.g., monthly or annually), rather than being paid for each individual service or visit. For instance, a doctor might receive $50 per month for each patient on their roster, regardless of whether that patient visits once, multiple times, or not at all during that month.

  While not a tax on individuals, this demonstrates the "per head" principle of capitation in a different context. The payment to the physician is based on the number of patients (heads) they are responsible for, not on the volume or type of services provided to each individual patient.