6.3 State and local taxes

operating budget

a budget for day to day spending needs

capital budget

a budget for spending on major investments

balanced budget

a budget in which revenue and spending are equal

budget

an estimate of future revenue and expenses

tax assessor

an official who determines the value of property

local gov taxes

local gocs levy property taxes, sales taxes ,excise taxes, and income taxes many local taxes affect visitors are are designed to raise revenue from nonresidents

How do local governments manage their money?

local governments manage their money in accordance with priorities set by elected local government officials local govs create budgets and collect taxes just like the federal government

local government

manage public facilities, parks and recreation facilities, monitor public health and transportation, elections, record keeping, and social services

personal property

movable possessions or assets

tax exempt

not subject to taxes

where are state taxes spent?

education public safety public welfare highway and transportation arts and recreation administration

state budgets

govs plan their spending by creating a budget federal gov has 1 budget, state gov has 2 unlike federal gov, 49 states require balanced budgets- in which revenues are equal to spending

real property

land and any permanent structures on the land to which a person has legal title

state tax revenue

state receive most of their revenue through taxes -sales tax on goods and services is the main source of state revenue many states also collect an individual income tax which is paid in addition to the federal income tax other state taxes include- licensing fees on certain businesses, transfer taxes on stock certificates, inheritance taxes, property taxes