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