This research will begin with the statement that the debate on categorizing user fees, user charges, and license charges as taxes has been well established within the society, moving to the court level in some states for clarification. It is important to note that as much as both the taxes and these user charges and fees contribute towards the government revenue, there is a significant difference between them. One of the most significant differences between the user charges and taxes is that the user charges are paid primarily for the sake of regulating the welfare of the target population or in other cases; they are charged a fee for services of the same value, offered by the government. Contrary to this, the taxes are mainly aimed at raising the government revenue and do not involve a direct reciprocating service in respect to the value of the amount paid. Another important point to note is that user charges are mainly required of the particular individuals that a government service is directed to, or towards off-setting an incurred regulatory burden. This is unlike tax that is uniformly applied to the district in which it implemented. Lastly, the funds gained from the user charges are directed towards catering for the cost of regulation or the cost of service providence for the involved fee payer. On the other hand, funds gained from general taxes are directed towards the benefit of the public.