Theory of Fees. 
61 
la both fees and assessments the element of public purpose 
may be present in the consideration rendered as an equivalent. 
Neither is collected primarily to procure revenue to defray ex¬ 
pense of government, but both are levied normally to pay for 
the cost of services or improvements given by the government. 
But the differences are just as striking. Special assessments 
are levied on the owners of property in fixed local territorial 
districts for benefits accruing to the property as a result of pub¬ 
lic improvements; while fees are levied on no class in particu¬ 
lar, but on individuals, and are returns for any public benefits 
or services to the individual, whether it affect his personal prop¬ 
erty, real estate, or anything esteemed of value. In special as¬ 
sessments the total sum to be collected is absolutely fixed and 
determined upon beforehand; while the revenue from fees de¬ 
pends on various circumstances, such as general prosperity, 
condition of markets, and so on. 
We have thus briefly summarized the distinctions between 
fees, taxes, and special assessments. It must be remembered, 
however, that in a large number of fees there is no practical 
method of measuring accurately the special benefit; hence the 
government is forced to fix the fees arbitrarily. The practical 
distinction will therefore be the intention or the motive of the gov¬ 
ernment. 1 If it levies merely a counter payment for its estimate 
of the roughly measurable special benefit, then the payment is 
a fee; while, in case of a tax, it arbitrarily decides to use the 
opportunity of exacting some revenue without reference to the 
special benefit to the tax-paying individual. 
In drawing the line of demarcation between fees and taxes, it 
is not said that the charges should never be so high as to be¬ 
come a tax. In fact it is sometimes desirable and proper that 
such taxes should be levied. Take a high liquor license as an 
example. There is no doubt that, if it be made high enough, it 
become a special tax; but it may be the very best kind of a tax, 
in that it is easily collected and discourages the consumption of 
spirituous beverages. Still, the distinction between fees and 
1 So held in the case of Harmon v. City of Chicago {Sup. Court Bep., 
XIII, p. 306). 
