What is a user fee?

Prepare for CGFM Exam 1 – Governmental Environment. Utilize flashcards and multiple-choice questions with explanations and hints. Ace your exam!

A user fee is defined as a charge levied for the access or use of a particular good or service that specifically benefits the individual or organization that pays the fee. This concept is designed to ensure that those who directly utilize a service contribute to the costs associated with providing it. For example, a toll for using a public road or a fee for admission to a public park are both instances of user fees. The idea is that the fee reflects the cost of the service or facility directly used by the payer, aligning the funding with the consumption of services rather than spreading the cost across the general population.

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