Question

What are the main sources of revenue for local governments?

a) Federal Grants
b) Income Tax
c) Property Taxes
d) State Grants

Answer 1

b) Income Tax

c) Property Taxes

The chief way in which local government receives their income is mainly from taxation. Forty-five percent of government income comes from people' personal income tax and Property taxes. Other 39 percent of government income generates from Social Security and Medicare.