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Administrative fee for tax collection is an unconstitutional hidden tax

  • Sheppard Mullin Richter & Hampton LLP
  • -
  • USA
  • -
  • August 28 2009

In 1997, in an attempt to clarify the sometimes blurry distinction between a government “fee” and a government “tax,” the California Supreme Court explained that “taxes are imposed for revenue purposes, rather than in return for a specific benefit conferred or a privilege granted.”