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module two licenses fees and excise taxes federal state and local revenue agencies commonly issue licenses and collect fees in addition to administering and enforcing generally applicable tax laws licenses are required for regulated activities which vary by jurisdiction a plethora of federal agencies issue licenses for activities closely controlled by the federal government but just about any business operating in the United States will need to secure some form of license or other approval from its state to carry out its activities in this module we will explain why and when licenses fees and excise taxes are required for commonly regulated activities licensing for regulated activities a license also sometimes called a permit is a regulatory device that ensures that people comply with the rules and regulations put in place to govern specific occupations commercial trades professions and other activities licenses and permits are legal devices and they are administered by government age