The correct answer is C: taxpayers in that city or county.
State and local governments provide a variety of services for the public. Some of them are: police protection, education, roads and highway building and maintenance, welfare programs, hospital and health care.
The single biggest expenditure in all states is education, followed by public welfare, health care and highways.
Counties and cities get their money from licenses and fees but half of the state revenue comes from taxes: sales taxes, income taxes and property taxes.
Taxes differ from state to state but almost all states place taxes on gasoline, liquor, automobiles and cigarettes.
