Can municipalities create any type of fee structures including late fees that are 125 percent a month? For example a trade license is $125 a...

Question

Can municipalities create any type of fee structures including late fees that are 125 percent a month? For example a trade license is $125 a year but if you are one day late with the renewal then you are charged $100 and another $100 every month for six months.

Answer

Some can. Missouri has different classes of cities, with slightly different powers. And, the way in which the fee and penalty are established, effects its enforceability.

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