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States are also prohibited from assessing taxes in ways that discriminate on the basis of race, gender, religion, alienage, or nationality. Finally, states may not condition the right to vote on payment of taxes.
Local government is now typically financed by value-based property taxes, mainly on real estate. Additional taxes may be in the form of fixed sales taxes and use taxes. Local government fees such as building permit fees may reflect the added capital cost and operating costs of services such as schools and parks. Local governments may also collect fines (parking and traffic tickets), income tax, gross receipts or gross payroll tax, or a portion of sales taxes (such as meal taxes) collected by the state...
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