Legal Definitions - per capita tax

A per capita tax is a type of tax levied as a fixed amount on each individual person, regardless of their income, wealth, or property. The term "per capita" is Latin for "by head," meaning the tax is applied uniformly to every "head" or person within the designated group.

Here are some examples to illustrate this concept:

• Example 1: Community Infrastructure Fee

  Imagine a small town that decides to fund the maintenance of its public library by imposing an annual fee of $25 on every adult resident aged 18 and over. This fee is collected from each eligible individual, irrespective of their personal income or whether they actually use the library.

  How it illustrates the term: This is a per capita tax because every adult resident pays the exact same fixed amount ($25), demonstrating a tax levied "by head" rather than based on their financial capacity or property ownership.

• Example 2: Historical Colonial Levy

  In a historical context, a colonial administration might have imposed a specific annual tax of one shilling on every male inhabitant aged 16 to 60 within a particular district to support the local governor's office. This tax was applied uniformly to all men within that age bracket.

  How it illustrates the term: This exemplifies a per capita tax because the fixed amount of one shilling was demanded equally from each qualifying male individual, without considering their personal wealth, landholdings, or other assets.

• Example 3: Membership Dues for a Specific Benefit

  Consider a professional association for independent artists that offers a unique legal aid service to its members. To access this service, the association charges an additional, mandatory annual fee of $75 to every member who wishes to opt in, regardless of their artistic income or success.

  How it illustrates the term: While not a government tax, this fee functions as a per capita charge for that specific benefit. Every opting-in member pays the identical $75, making it a fixed amount per individual for access to the service.