October 11, 2011; Source: Stateline | The fiscal desperation of revenue-strapped governments hits nonprofits in a number of ways, particularly program cutbacks. One of the revenue-generating strategies some localities and states have used is to slap nonprofits with various kinds of user and licensing fees, characterizing them as fees rather than taxes so that they can be charged against tax-exempt nonprofits. Examples discussed in the NPQ Newswire and other NPQ articles include Nassau County, New York’s sewer-user fee (the so-called “toilet tax”); St. Cloud, Minnesota’s street light utility fee; fees on nonprofit food service booths at fairs and events; and child-care center licensing fees. Governments are creatively unbundling the public functions paid for by income or property taxes, and finding pieces that can be converted to fee structures and