Question

As noted in Example 1-2, tolls, parking meter fees, and annual licensing fees are not considered taxes. Can you identify other fees that are similar?

Answer 1

Answer:

Example:
Income tax, excise tax, sales tax.
Fees:
Fees are considerations paid to receive a specific type of service directly.
Example:
Tolls, parking meter fees and annual licensing fees.
Other example of fees are entry fees to any national parks, tag fees paid to a local or state government for automobiles and boats.
The only difference between tax and fees is that, the benefit of tax is not received directly by the tax payer; whereas the benefit of the fees is received directly by the taxpayer at the time of payment of fees.