State supervision over raising revenue takes various
forms. It is common for state legislatures to institute
stringent limits and controls on taxes and revenue
sources for local governments. Type s of statutory controls include limiting the types of revenues that can be
raised, exempting some properties from the tax base,
and placing caps on tax rates . States specify revenue
types and sources avail able to local governments. Historically, property taxes were the predominant source
of local government revenue and they continue to be
the primary revenue source for school districts. State
controls applied to property tax include methods of
assessing property value, creating or denying exemptions , and limiting tax rates.