Which of the following is not among the top three local tax revenue sources?

• A. General sales taxes
• B. Property taxes
• C. Individual income taxes
• D. User fees

Answer: (D)

Local governments get most of their tax revenue from property taxes, general sales taxes, and, where allowed, local income taxes. Property taxes typically provide the largest share because they’re tied to land and structures and offer stable, ongoing funding. Sales taxes contribute a broad revenue base linked to consumer spending, and local income taxes add another tax-based stream where jurisdictions have authorized them. User fees, by contrast, are charges for specific services or facilities (like permits, utilities, or park programs) and are not taxes. They contribute revenue as fees rather than tax revenue, so they don’t rank among the top tax sources.