Essay On Local Government Revenue

716 Words3 Pages
TTLSS Project - Local Government Revenue A local government, like an individual family, needs to have an income. The reason for this is because in the same way that a family needs money in order to take care of its family members, so does a local government need to take care of its citizens. While the heads of households in a family goes to work in order to collect a paycheck, a local government gathers its income from the taxes that it charges for its everyday services to its citizens. Because taxes are paid in exchange for a service from the government, and because they are a government’s main source of revenue, it is very important that a local government keep a well-defined list of taxes that apply to its local situation. Citizens everywhere need all kinds of services to help increase the quality of their everyday lives. State governments help make these big decisions about what the citizens need. However, they cannot make all of the services and policies happen. Therefore, it is necessary for them to have agencies help them make sure that all of the services which taxes pay for actually happen. These agencies are split into cities, counties, and special districts; the separation of agencies depends on the different types of responsibilities that they have. Citizens everywhere need many services to increase the quality of their lives. While state governments help make the big decisions about what the citizens need, they use agencies to help make sure that all of the services which taxes pay for actually happen. These agencies are local governments that are split into cities, counties, and special districts depending on their different types of responsibilities. In order for these different agencies to be able to keep u... ... middle of paper ... ...n Texas, having more property tax can be better than having an income tax. It is very important that local governments of each state get to decide their own taxes since different areas have different values. Since Texas does not have an income tax, the S.C. Advisory Commission on Intergovernmental Relations (ACIR) has reported that 91.8 percent of the funding for local governments in Texas comes from property tax. Texas local governments then get most of the rest of their funding from fees they collect. Finally, it is also good to know how tax rates change. Usually, Local governments enforce the changes made by the state governments when they set new limits or increases. This enforcement is the biggest difference between them, but either way, both need the citizens to first pay for the services. Therefore, government funding from taxes and fees are very important.
Open Document