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Which of these is not a source of state and local tax revenue?

payroll taxes
property taxes
sales taxes
income taxes

D?

All of these are sources of state and local tax revenue. Most states have income taxes, making D a wrong answer.

My lesson kind of uses federal taxes with income taxes interchangeably.

So would D then be the answer?

Ask your teacher.

Yes, you are correct. Income taxes are not a source of state and local tax revenue.