revenuecap
nounUK /ˈrɛvənjuː kæp/
US /ˈrɛvənuː kæp/
A revenue cap is a rule that says how much money a group can make at most.
The city put a revenue cap on the water company so bills would not rise too fast.
RELATED WORDS
OTHER MEANINGS
2. A legal limit on the total money a utility may collect from customers.
Under the revenue cap, the power company cannot collect more than the approved amount.
3. A business agreement that sets the highest amount of sales money a partner may earn.
The franchise contract includes a revenue cap for each store.
4. A government rule that limits how much tax money a public agency can take in.
The new revenue cap forced the school district to plan a smaller budget.