12.4 License Fees

Licenses serve as regulatory tool for specific activities, such as driving and the sale of alcohol. Typically, they are charged at a flat rate, although fees may vary depending on the type of activity. While a license grants permission to engage in an activity, it does not constitute the purchase of a service or good. There are different types of licenses based on their purpose. Regulatory licenses are often restrictive and require inspections to ensure compliance with standards, as seen with alcohol licenses. Revenue licenses, on the other hand, are issued primarily for generating income, with minimal restrictions and no inspection requirements, and are generally available to all applicants.