How do local governments in Texas primarily raise revenue?

Local governments in Texas primarily raise revenue through property taxes, which are a critical funding source for various essential services such as education, public safety, infrastructure maintenance, and local administration. Property taxes are levied based on the assessed value of real estate within the jurisdiction, and the revenue generated is used to meet the financial needs of local entities, like school districts and municipalities.

This reliance on property taxes is rooted in the structure of local government finance in Texas. While other sources, like sales taxes and state grants, contribute to local revenues, property taxes provide a more stable and consistent funding mechanism. Due to the variation in local markets and property values, property taxes can be adjusted to ensure that funding levels align with the needs of the community, allowing local governments to effectively manage their budgets and provide necessary services.