Gerald J. Miller Arizona State University
Cities in three of the states, Illinois, Mississippi and New Mexico, depend substantially on state aid. Property taxes are relatively minor revenue sources for all but two states, Illinois and Texas, where this tax comprises 16.3% and 18.4 % of local revenues respectively. Sales taxes form much larger proportions of the taxes collected by cities in four states, Missouri, Louisiana, New Mexico and Texas. Only three of the ten states’ cities have an income tax – Indiana, Kentucky and Missouri; in Kentucky the income tax is 17.5% of local revenue. Current charges and utility revenues, expected to be stabilizing revenue base elements, form major parts of the revenues in Arkansas, Indiana, Texas, Mississippi and Tennessee.
This article is supporting documentation for the Alliance for Innovation Navigating the Fiscal Crisis white paper.