feelevy

Feelevy is a policy instrument described as a mandatory charge that combines elements of a fee and a levy to fund a specific public service or program. In practice, a feelevy is designed to raise revenue through an obligation on individuals or entities, with the proceeds earmarked for a designated purpose. The term is not universally standardized and may be used differently in various jurisdictions, but it generally sits between a user fee (charged for a service) and a levy (a broader, often compulsory charge for a public good).

Key characteristics commonly associated with feelevies include legal authority to impose the charge, a stated rate or fraction, and the allocation of collected funds to a predefined program or service. Rates can be fixed per household, per business, per unit of activity, or based on property values, income, or consumption. Exemptions and adjustments are often included to address equity concerns, and administrative rules typically outline collection, reporting, and accountability requirements. In many cases, feelevies are intended to provide predictable, ring-fenced funding, with oversight and sunset provisions to reassess continued relevance.

Critics of feelevies may point to potential regressivity, added administrative costs, and the risk that earmarking reduces flexibility in budgeting. Proponents argue that targeted charges improve transparency and ensure that the costs of a service are borne by those who benefit from it. The use and design of feelevies vary widely, reflecting local legal frameworks and policy goals.