A levy is a broad term that means to collect or to assess money that is due to be paid. The term levy, as it applies to taxation, often refers to the process by which the government assesses the amount of money that taxpayers are required to pay, or what they owe, in taxes. In some situations, other regulatory agencies can use this term. It may, then, apply to a fine that is paid by the taxpayer who has not paid the required taxes in a timely fashion. A levy is a requirement to pay tax not an option. The value of the levy and the reason for applying it is based on the actual laws of the jurisdiction applying the levy.