Current taxation laws impose real property taxes through local city or county governments and states no longer collect the taxes. Real property taxes provide the largest source of school funding for most public schools. Several states have cut real property tax rates leading to large shortfalls of educational revenue. The federal government provides 10 cents for every dollar a state spends upon primary education costs. The bulk of the revenue, according to the National Center for Education Statistics (NCES), is raised from local and state government taxes. A county's collective wealth can be seen in the state of its public school facilities. Poverty-stricken districts are impacted by the lack of tax funding and incidental inabilities to improve outdated building systems and upgrade its technology and equipment.
The tax rate or amount of tax each citizen pays depends upon the total value of the property that individual owns. The states provide the specific tax guidelines. Typically, local governments place the taxes upon its residents. Commonly, examples of personal property taxes include automobiles, trailers, sheds and boats. According to the 2006 NCES survey, 93 percent of education revenue is raised through personal and real property taxes and sales and use taxes.
Businesses located in specific states may be subject to corporate income taxes. Depending upon the state's ability to garner corporate relocation within its geographical boundaries, corporate income taxes may fund a large proportion of the state education subsidies. The disparity in a state's abilities to raise income for its public schools is demonstrated by states that have lower tax rates and assessments upon its residents. States such as Illinois had the second largest gap within the United states of per capita tax collections and contributions to its K-12 educational programs. A significant reason for the disparity can be explained by an inability by local districts and counties to generate tax revenues from its poorer neighborhoods.
Since laws may frequently change, you should not use this information as a substitute for legal advice. Seek an attorney's advice who is licensed to practice in your jurisdiction.