a charge imposed and collected
"The government decided to levy a new tax on luxury goods to fund public services."
the act of drafting into military service
"The king ordered that all able-bodied men be levied to defend the kingdom against the invading army."
The act of levying.
"The treasurer calculated that the Spanish real, known as levy in colonial accounts, was worth elevenpence under the old exchange rate."
The Spanish real of one eighth of a dollar, valued at elevenpence when the dollar was rated at seven shillings and sixpence.
In plain English: A levy is an official tax that a government collects from people to pay for public services.
"The new tax levy will increase property taxes for homeowners next year."
To impose (a tax or fine) to collect monies due, or to confiscate property.
"The government announced that it would levy a new sales tax on all electronics sold in the state."
In plain English: To levy means to officially demand and collect money as a tax or fine from people.
"The government decided to levy a new tax on luxury cars."
Usage: Use "levy" as a transitive verb specifically for imposing taxes, fines, or other official charges by authority. It is often confused with the noun form meaning an amount collected, but in everyday usage it refers strictly to the act of collecting money due through legal power.
A surname, from Irish​.
"The genealogist traced the family tree of a man named Levy back to his Irish ancestors."
The word levy comes from the Old French leve, which originally meant "to raise." It entered English through Anglo-Norman with this same sense of lifting or collecting something.