Podcast
Questions and Answers
Which assumption does the Benefit view of the property tax rely on?
Which assumption does the Benefit view of the property tax rely on?
- Higher-income individuals are more likely to own property than to rent
- the property tax is a general tax on capital assets
- People and businesses will move to locations with an appropriate mix of services (correct)
- Jurisdictions may tax above or below the average rate depending on their need for services
What is the most significant source of own-source revenue for local governments in the U. S.?
What is the most significant source of own-source revenue for local governments in the U. S.?
- Property tax (correct)
- Sales Tax
- Income tax
- Charges and fees
Which statement is true regarding excise taxes, such as those on tobacco, alcohol, and gasoline?
Which statement is true regarding excise taxes, such as those on tobacco, alcohol, and gasoline?
- They are a stable source of state and local own-source revenue over time
- They tend to be highly regressive (correct)
- They bring in more revenue when prices per unit go up
- They are politically popular due to few compliance and border problems
Which statement is true regarding user fees?
Which statement is true regarding user fees?
Why is it important to combine state and local revenue when comparing state fiscal structures?
Why is it important to combine state and local revenue when comparing state fiscal structures?
Which of the following is a common exemption to the sales tax base?
Which of the following is a common exemption to the sales tax base?
Which statement is true regarding state and local income tax?
Which statement is true regarding state and local income tax?
Which of the following is a common revenue use for state and local excise taxes on gasoline?
Which of the following is a common revenue use for state and local excise taxes on gasoline?
Which level of government provides the majority of public elementary and secondary school funding?
Which level of government provides the majority of public elementary and secondary school funding?
When providing data to help inform policymakers, assessing officers should rely on property tax and valuation data that are generally available from which source?
When providing data to help inform policymakers, assessing officers should rely on property tax and valuation data that are generally available from which source?
Study Notes
Property Tax and the Benefit View
- The Benefit view of property tax relies on the assumption that property owners benefit directly from local government services funded by these taxes.
Revenue Sources for Local Governments
- The most significant source of own-source revenue for local governments in the U.S. is property tax.
Excise Taxes
- Excise taxes, applied to goods such as tobacco, alcohol, and gasoline, are typically designed to discourage consumption of these products or to offset social costs associated with their use.
User Fees
- User fees are charges imposed for specific services provided to individuals, and they are generally viewed as a mechanism for funding those services rather than a tax.
State and Local Revenue
- Combining state and local revenue is vital for comparing state fiscal structures as it provides a complete picture of funding available for public services.
Sales Tax Exemptions
- A common exemption to the sales tax base includes essential goods, such as groceries or prescription medications.
Income Tax Insights
- A true statement regarding state and local income tax is that they are progressive, meaning that the tax rate increases as income rises, balancing the tax burden based on taxpayers' ability to pay.
Use of Excise Taxes on Gasoline
- State and local excise taxes on gasoline are commonly used to fund transportation infrastructure projects, including road maintenance and construction.
School Funding
- The majority of funding for public elementary and secondary schools is provided at the local level, through property taxes and local revenue sources.
Data for Policymaking
- Assessing officers should rely on property tax and valuation data that are generally accessible from local or state governmental departments, ensuring accurate and timely data for policymaking.
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