Final answer:
Sales tax is primarily levied by state governments, sometimes supplemented by local governments, and is a significant source of revenue for public services. Property tax is a local tax, while income tax can be levied by federal, state, or local governments. Intergovernmental revenues help fund public services at lower levels of government. Option A is correct.
Step-by-step explanation:
Sales tax is primarily levied by state governments as a percentage of the purchase price of certain goods and services. Local governments may also impose a sales tax, creating a combined state and local rate that varies by location. Sales taxes are a significant source of revenue for states, funding various public services including school systems and infrastructure. Notably, some states may choose not to collect a state sales tax; instead, they might rely more heavily on other forms of taxation such as property taxes, income taxes, or fees.
While sales tax is managed at the state and sometimes local levels, property tax is an example of a local tax typically charged on the value of real estate. Income tax, on the other hand, can be levied by federal, state, or local governments, with the rate often varying by the taxpayer's income level. To understand the distribution of tax revenues, it is also pertinent to mention intergovernmental revenues. These funds are passed down from federal to state and local governments or from state to local governments, supporting vital public services such as welfare, healthcare, and education.