MANAGEMENT

Detailed explanation-1: -a) Local taxes are in principle the main source of revenue for local governments, with the choice about tax rates to fund local services being the key annual decision made by local elected representatives. There are many types of local tax (see below), of which property tax is the most common internationally.

Detailed explanation-2: -State and local governments collect tax revenues from three primary sources: income, sales, and property taxes. Income and sales taxes make up the majority of combined state tax revenue, while property taxes are the largest source of tax revenue for local governments, including school districts.

Detailed explanation-3: -In contrast, property taxes are one of the largest sources of revenue for local governments.

Detailed explanation-4: -Property taxes are the primary source of tax collections at the local level, responsible for 72.2 percent of local tax revenue in fiscal year 2020 (the most recent year for which data are available).