Understanding Taxes and Revenue Sources in Local and State Governments
This text explores various types of taxes, including excise, estate, and sales taxes, that serve as revenue sources for state and local governments. It also discusses intergovernmental revenue and its significance, the balanced budget requirement in North Carolina, and how different government levels fund services such as public education, utilities, and emergency management. Additionally, it examines revenue generation methods including user fees, fines, and bonds, providing insight into the financial mechanisms that sustain local agencies and services.
Understanding Taxes and Revenue Sources in Local and State Governments
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Presentation Transcript
Vocab • Excise tax- Taxes on non-essentials like alcohol and tobacco • Estate tax- Tax that must be paid on an inheritance before it can be transferred • Intergovernmental Revenue- Money that comes from another level of government
Warm up: • What plan of city government would have a mayor elected by the people as the chief administrator for a city? • Mayor-Council plan
David has just been hired to be the city manager for a city. There will be a mayor as well, but she will serve primarily as a ceremonial representative. David is the one who will be primarily responsible for overseeing city gov’t. David’s city operates on which model of gov’t? • Mayor-council plan • Council-manager plan • Manager-mayor plan • City-township plan
How do State and local gov’t raise revenue? • North Carolina is required to have a balanced budget. This requires revenue and responsible spending. • Taxes • State income tax • Tax paid on a % of persons income • Corporate income tax • Corporations pay a % of yearly profits • Property taxes • People who own homes or land • Inheritance tax • On what one inherits when a person dies • Estate tax • Must be paid before it can be transferred to the heir
Taxes Continued • Sales tax • % of sales price • Excise tax • Taxes on “non-essential” goods…cigarettes/alcohol
Permits and licenses (drivers, fishing, etc.) • User Fees • Charged to people who use public facilities (toll road, park) • Disposal Fees • Removal of waste • Impact Fees • Paid for by developers • Fines • Punishment for a crime
Other means of revenue • State and Municipal Bonds • State and local gov’ts sell bonds in exchange for cash • Intergovernmental Revenue • Money that comes from another level of government (Federal grants) • Used to pay for things like Medicaid & disaster relief
State • Jails & Youth Detention Centers • Public Utilities • Electric and water Co.
Federal • Public Housing • Housing for low income families
Local • Ambulance Services • Libraries
State & Local • Community College • Post secondary school to further education • Court Facilities • Tax Assessment • Assesses the value of property • Airports • Department of Parks and Recreation • Maintain local & state parks
State & Federal • Cooperative Extension Service • Help improve lives of citizens through education & research • Board of Elections • Carries out process of elections • Mental Health Services • Public Health Services • Soil and Water Conservation • Social Services • Help disadvantaged citizens improve Standard of Living
Funded by all 3 • Public Schools • Museums • Public Transportation • Subways, buses • Emergency Management Agencies • Fire & police
Closing/Reflection • SUMMARIZE IN YOUR OWN WORDS WHAT YOU HAVE LEARNED TODAY…… • WHAT ARE THE THREE LEVELS OF GOVERNMENT THAT AGENCIES OPERATE THROUGH? • SUMMARIZE WHAT KINDS OF SERVICES DO LOCAL, STATE, AND FEDERAL AGENCIES PROVIDE? • SUMMARIZE THE DIFFERENT KINDS OF TAXES THAT MAY BE USED AS A SOURCE OF REVENUE. • WHAT OTHER SOURCES OF REVENUE MAY BE USED OTHER THAN TAXES?
Closing • NC receives money from the federal gov’t for education. What is the term that describes that type of money? • Intergovernmental Revenue
