Test 2

Question 1

what type of taxes are the number 1 revenue source for local governents

Answer 1

property taxes

Question 2

what is real property

Answer 2

real estate, land, and any improvements made on it. things permanently fixed to it by nature

Question 3

what is personal property

Answer 3

everything that can be owned that is not real property. EX; cars

Question 4

how is real property value determined

Answer 4

market data or comparable sales of similar property

Question 5

how is personal property valued

Answer 5

tangible personal property (cars) and intangible personal property (patents). hard to value

Question 6

what is the order of funding from property taxes

Answer 6

1. education
2. government entities
3. non self supporting government entities

Question 7

what tax is the most stable

Answer 7

property tax

Question 8

what is the least stable tax

Answer 8

sales tax

Question 9

3 types of private government revenue

Answer 9

1. user fees
2. user charges
3. fiscal monopoly

Question 10

what are user fees

Answer 10

fees to participate in an activity that is otherwise restricted. EX: Drivers license

Question 11

what are user charges

Answer 11

prices charged for public services. EX: libraires

Question 12

what are the 2 conditions for user charges

Answer 12

1. benefits separability
   2, chargeability

Question 13

what is fiscal monopoly revenue

Answer 13

revenue from exclusive sale of private or toll good. EX: lotteries

Question 14

what is the correspondence principal

Answer 14

the first principal in assigning government services. says if benefit doesn’t exceed the local community it should be locally provided and so on.

Question 15

what is the subsidiary principal

Answer 15

it says government should services should be at the lowest level of government

Question 16

what are the 2 types of grants

Answer 16

1. categorical
2. block

Question 17

what are the 3 types of categorical grants

Answer 17

1. matching (federal government will match up to a certain amount)
2. maintenance of effort (you have to spend the money the government gives you and not replace, supplant, it)
3. revenue sharing grants (little to no restrictions on it)

Question 18

3 different types of education loans

Answer 18

1. flat grants (everyone receives the same dollar amount)
2. foundation grants (most used one, use tax rate to determine the amount sent)
3. guarantied tax base

Question 19

what are mandates

Answer 19

a constitutional provision that places an expenditure on the government

Question 20

3 characteristics of capital projects

Answer 20

1. long life
2. large price tag
3. non-recurring

Question 21

what is discounting

Answer 21

the process of turning costs overtime to a single present value

Question 22

what is an unfunded liability

Answer 22

any liability that doesn’t have funding set aside for it

Question 23

what tax funds social security

Answer 23

payroll tax

Question 24

what type of tax is the payroll tax

Answer 24

regressive

Question 25

what are the part of an agency request paper

Answer 25

1. narrative (describes the agencies objectives and goals)
   2.detail schedules (translates objectives into monetary requests
   3.cummulative schedules