Which type of revenue is classified as own source revenue?

Own source revenue refers to the income that a government entity generates independently, without relying on other levels of government or external sources. Property tax revenue falls into the category of own source revenue because it is collected directly by local governments based on the value of real estate properties within their jurisdiction. This revenue does not come from state or federal funding but is raised through taxation imposed on property owners.

In contrast, intergovernmental revenue includes funds that one level of government receives from another, such as grants or shared revenues from higher levels of government, which disqualifies it from being considered own source revenue. General fund revenue can encompass various funding sources, but it does not specifically designate the income generated independently, as it may include revenues from intergovernmental sources. Sales tax revenue, while also considered a direct tax, is often shared or allocated to different levels of government, which may not reflect the local entity’s own sourced funds in the same way that property taxes do. Therefore, property tax revenue accurately represents the concept of own source revenue.