Question

Which of the following levels of local government can collect taxes?

Answer 1

All of the above local governments can collect taxes.

Option: D

Explanation:

Taxes and revenues are collected by government. Taxes are of two types direct tax and indirect tax. Central, state, local government collect taxes from citizens from their jurisdiction. Local government includes town, city and counties.

Income tax, road tax are some of the examples of taxes. Sales tax, property tax, excise duties are also collected by government. If a person give his residence in rent he is liable to pay tax to the government otherwise it would fall under rent control act and the house owner will be charged fine.