Examples of Non-Tax Revenue

by Betsy Gallup, Demand Media Google
The government operates on more than tax revenues.

The government operates on more than tax revenues.

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While increasing the tax obligation of the U.S. populace is one way to increase government revenue, it does not help increase a politician's popularity. Government officials are apt to look for non-tax revenue streams to supplement the coffers whenever possible.

Fines, Penalties and Fees

Federal, state and local governments offer a number of services that come with a fee. Among the services you might pay a fee for include a charge for copies of official documents, such as birth and marriage certificates, driver's license renewal, pet licensing and and vehicle tags. Along with the fees, fines and penalties might be charged for failure to pay for the services in accordance with ordinances as well as the fines charged for breaking minor traffic laws.

Goods and Services

As government operations become leaner and worn equipment is replaced with newer models, officials find they have an excess of used equipment that can be turned into cash. The public provides a ripe marketplace for used police cruisers, public buses, heavy equipment, computer equipment and furniture. Public auctions provide money that can be used to offset government costs. Employee services are also a revenue stream. Park employees who lead guided walking tours and city trash services provide a stream of non-tax revenue that helps ease reliance on taxes. Also, excess water and electricity capacity can be turned into dollars when other counties or cities are running short.


Closed school buildings, empty state-owned buildings, and park shelter and reception facilities are examples of facilities that can be rented out. Government agencies also earn rent proceeds for the use of property by other agencies. For example, if the federal government needs space in a small town, the feds might arrange to rent out an unused office in the town hall from the municipality. Unusable properties are sold off.


Just as you might invest money set aside for special projects, officials use revenues as a means of earning interest and dividends. While the investment might be made up of tax dollars, the interest, dividends and capital gains are considered non-tax revenue. The investment opportunities might be in the form of mutual funds, bonds, foreign exchange rates and government-backed loans to businesses and individuals, such as small business loans and mortgages.

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