For local governments, other than school districts,
revenue sources include sales , income, and excise taxes ;
non- tax revenues include user fees for services and
enterprise funds. State exert budget spending control
by limiting tax base or tax rates and , thus, limiting
tax revenues collected. One stringent practice is indexing or limiting increases from previous years. States
often earmark revenues by limiting the purposes that
certain revenue can be used; for example, stat es may
limit the revenue from gasoline taxes to be us ed for
road repairs. State impose conditions for use of different types of taxes; an example is the centralized state
collection of sales taxes.