Question

State and local governments are allowed to conduct which of the following to raise revenue? Select all that apply. (3 points)

creating an immigration fee
issuing lottery tickets
charging a fee for professionals’ licenses
requiring a voter registration fee
taxing alcoholic beverages
taxing imports

Answer 1

Ways of raising revenues for states and local government.
charging a fee for professionals’ licenses
taxing alcoholic beverages
issuing lottery tickets

Answer 2

The correct answer is B) issuing lottery tickets, C) charging a fee for professional licenses, and E) taxing alcoholic beverages.

State and local governments are allowed to conduct these activities to raise revenue: issuing lottery tickets, charging a fee for professional licenses, and taxing alcoholic beverages.

The sources of revenue for these governments come from income, charges, sales, and taxes. It is taxes than provide half of the government revenue. Regarding taxes, the state and local governments' revenue is annually divided like this. Property tax: 35%. Sales and gross receipts tax: 34%. Individual income tax: 20%. Corporate income tax: 6%. Motor vehicle License taxes: 2%. Other taxes: 6%.