What are non-tax local revenues?

Prepare for the Certified Municipal Finance Officer Exam. Study with flashcards and multiple choice questions, each question has hints and explanations. Set yourself up for success!

Non-tax local revenues refer to the income generated by a local government from sources other than taxes. This definition encompasses various forms of income that a municipality might collect to fund its operations and services.

Option B accurately captures this concept as it highlights income generated from local sources while specifically excluding taxes. This can include fees for services, fines, permits, licenses, and charges for the use of municipal facilities or services. Understanding this type of revenue is crucial for local governments as it diversifies their funding sources beyond property and sales taxes, thereby enhancing financial stability.

The other options mentioned involve forms of revenue that are indeed crucial for local governments, however, they do not fit into the non-tax category. Income from state and federal grants represents external funding rather than local generation. Revenues collected from property taxes and income derived from sales taxes are both distinctly tax-related revenues, which are fundamentally different from non-tax revenues.

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