ABSTRACT
This chapter provides information on revenue calculations, focusing on the second major component of local revenues, intergovernmental assistance. It then describes important intergovernmental revenue sources, followed by a description of the computational procedure through an example in an actual jurisdiction. The chapter presents revenue tabulations which have been completed for the revenue side of the cost-revenue example contained in each cost projection method. Intergovernmental revenues are often more difficult to project than own-source funds: the allocation formulas are more complicated; eligibility for assistance changes as local wealth, unemployment or other indicators move upward or downward; and there are frequent overall community effects that must be considered. Sales tax levied by a state for the privilege of selling or renting tangible personal property at retail rates typically is returned to local governments as a flat and uniform percentage of the locality's taxable retail sales. Several states redistribute state-levied income tax to local jurisdictions.
