Local tax

A local tax is a tax charged by state, district, municipal, or city governments rather than the central government. These taxes help local authorities raise money to provide essential services and develop infrastructure for their communities. The revenue is usually spent on roads, public safety, schools, sanitation, and other local needs.

Common examples include:

1. Property tax on land or buildings,
2. Local sales tax on goods or services sold in the area,
3. Municipal service tax for water supply or waste management,
4. Vehicle or road tax for registration or road usage.

Example:

A city collects property tax from homeowners and uses the money to maintain local parks, repair roads, and improve street lighting.