Legal Definitions - public revenue

Public revenue refers to the total income or funds collected by a government or public authority from various sources. These funds are essential for financing public services, infrastructure, and the general operations of the government.

Here are some examples illustrating public revenue:

• Example 1: Income Tax Collection

  A national government collects income tax from its citizens and corporations based on their annual earnings. For instance, when an individual files their tax return and pays a portion of their salary to the government, or when a large company pays taxes on its profits, these payments contribute to the national treasury.

  This income tax is a direct contribution from individuals and businesses to the government's funds, making it a primary form of public revenue. This money is then used to finance essential national services such as defense, social security, and federal infrastructure projects.

• Example 2: State Sales Tax

  A state government imposes a sales tax on most goods and services purchased within its borders. When a consumer buys a new car or groceries, a percentage of the sale price is added as tax. The retailer collects this tax and periodically remits it to the state.

  The sales tax collected by businesses and subsequently transferred to the state government constitutes public revenue. This revenue often supports state-level initiatives like funding public schools, maintaining state highways, or providing healthcare programs.

• Example 3: Municipal Permit Fees

  A city government charges a fee for issuing various permits, such as building permits for new construction, business licenses for operating within city limits, or parking permits for residents. For example, a restaurant owner must pay a fee to the city to obtain a license to operate their business legally.

  The fees collected for these permits and licenses are a form of public revenue for the city. This specific revenue helps cover the administrative costs of processing applications, conducting inspections, and ensuring compliance with local regulations, contributing to the city's overall budget for services like sanitation and public safety.