What is the most significant source of own-source revenue for local governments in the U.S.?

The property tax is the most significant source of own-source revenue for local governments in the U.S. This tax is levied on real property, which includes land and buildings, and it provides a stable and predictable revenue stream that local governments rely on to fund essential services such as education, public safety, infrastructure maintenance, and community services.

Property taxes are typically assessed based on the value of the property, which makes them relatively straightforward to administer and enforce compared to other forms of taxation. Furthermore, property tax revenues are crucial for funding local government operations, as they are often less subject to fluctuations than sales or income taxes, which can be impacted by economic cycles and consumer behavior.

Additionally, many local governments have limited authority to impose other types of taxes, making property tax a primary means of generating revenue independently. This reliance on property tax underscores its importance as the backbone of local government financing in the U.S.