How do state and local revenues from charges work?

January 2024

By: Tax Policy Center

https://taxpolicycenter.org/briefing-book/how-do-state-and-local-revenues-charges-work
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Paying for Planning

This briefing paper demonstrates how state and local revenues’ reliance on charges have grown over time to almost as much as property taxes and more than general sales. State and local governments both collect most of their charges from hospital fees, higher education payments, sewerage fees, and air transportation. States also collect highway charges, and localities collect from solid waste management and parks and recreation. These methods arising from the need for self-generating revenue to pay for public services and infrastructure.