Legal Definitions - levy

The term "levy" refers to two primary legal concepts:

• The imposition or collection of a financial obligation: This means an official act by a government or authorized entity to impose or collect a tax, fee, or fine. It can also refer to the tax, fee, or fine itself.
• The legal seizure of property or assets: This describes the process by which a government or creditor, often with a court order, legally takes possession of someone's property or funds to satisfy an unpaid debt or judgment.

Here are some examples to illustrate the meaning of "levy":

• Example 1 (Imposition of a Tax): A city council votes to levy a new property tax on commercial buildings to fund improvements to public infrastructure. This means the city is officially imposing a new financial obligation (a tax) on property owners.

• Example 2 (Seizure of Assets): After a small business failed to pay its outstanding invoices, the court granted a judgment allowing the creditor to levy funds directly from the business's bank account. In this scenario, "levy" refers to the legal seizure of money from the bank account to satisfy the unpaid debt.

• Example 3 (Collection of a Fine): The environmental protection agency announced a significant levy on companies found to be polluting local waterways, aiming to deter future violations and fund cleanup efforts. Here, "levy" refers to the substantial fine that is imposed and collected as a penalty.