The correct answer is B) state and federal funds.
A local government gets about the same amount of revenue from property, sales, and income taxes as it does from state and federal funds.
A local government in the states also receives an amount of revenue from funds, state or federal. The federal government usually provides grants to state and local governments. The funds come from federal outlays, and a percentage of the Gross Domestic Product, to improve infrastructure projects or programs that benefit citizens in the community.