Final answer:
Local governments in Michigan can collect local taxes, service charges, and fees with the approval of the city council. These revenues are essential for funding municipal services and are constrained by state regulations. Property tax and sales tax are typical local taxes collected within these jurisdictions.
Step-by-step explanation:
The question at hand deals with the sources of revenue for local governments in Michigan and the approval needed to collect local taxes, service charges, and fees. The correct entity that must approve the collection of these revenues is the city council. Local governments, such as those in Michigan, exercise the power to impose taxes and fees within the boundaries established by the state government, leading to crucial funding for locally provided services.
In Michigan, local governments like city councils have the autonomy to levy property taxes, which are based on the value of real estate. Taxes such as property tax and, in some areas, sales tax, play a significant role in funding city budgets, enabling the provision of essential services such as police and fire departments, education, and maintenance of public infrastructure.
Local governments face unique challenges as they must balance their budgets and provide services with limited resources. Municipalities do not possess sovereignty and thus must adhere to state-level constraints, including limits on tax rates and revenue thresholds. Nonetheless, the ability to receive intergovernmental revenues from federal and state sources can aid local governments in budgeting and fiscal planning, complementing their locally collected taxes.