Legal Definitions - imposition

In a legal and financial context, imposition refers to a tax, duty, or levy that is officially mandated and collected by a government or other authorized body. It represents a financial burden placed upon individuals, businesses, or transactions, typically to fund public services, regulate economic activity, or achieve specific policy goals.

Here are some examples illustrating the term:

• Example 1: State Sales Tax

  When a state government requires all retailers to collect an additional 7% on the sale of most goods and services, this 7% charge is a sales tax. This sales tax is an imposition because it is a mandatory financial levy placed by the state government on consumer purchases. The revenue generated from this tax is then used to fund various public services, such as education and infrastructure projects.

• Example 2: Import Tariffs on Foreign Goods

  A country's government decides to place a 15% tariff on all imported luxury vehicles to encourage domestic manufacturing and generate revenue. This 15% tariff is an imposition. It is a duty mandated by the government on specific goods entering the country, making foreign luxury cars more expensive for consumers and businesses, thereby serving both a revenue-generating and a protectionist policy purpose.

• Example 3: Local Property Tax

  A city council annually assesses a property tax on all real estate within its jurisdiction, based on the property's appraised value, to fund local schools and emergency services. This property tax is an imposition by the city. It is a recurring financial burden legally placed on property owners, collected by the local government to provide essential community services.