Final answer:
A direct payment method used by states to raise money is income tax, which is a tax on an individual's wages or salary. Other state tax revenue sources include sales tax, property tax, and excise tax, with each state determining its reliance on each tax type based on needs and policy decisions. Option 3) Property tax is the correct answer.
Step-by-step explanation:
The direct payment method used by a state to raise money highlighted in the options is income tax. States generate revenue through various taxation methods including sales tax, property tax, and excise tax, among others. While sales tax is a percentage of the purchase price on goods and services, and property tax is imposed on the value of real estate, income tax pertains to the taxation of an individual's wages or salary. Excise tax is levied on certain goods being produced or sold. The choice of which taxes to rely on can vary significantly from one state to another.
As states and local governments handle rising spending, taxes have become an essential aspect of their revenue systems. Some states may depend more heavily on property taxes while others may lean toward sales or income taxes. Additionally, state and local governments might also receive intergovernmental revenues which are funds provided by the federal government. It's important to note that the types of taxes used can directly affect individuals and businesses, as the tax burden influences economic behavior and can vary greatly depending on the tax structure of each state.