Outside of federal dollars, state and local budgets are primarily funded by taxes on what a household or business earns (e.g., income tax), buys (e.g., sales tax) and owns (e.g., property tax).
The features of different taxes can vary substantially, including who is levying the tax (county, state), who pays the tax (household, business/developer), how tax liability differs between individuals (e.g., income-based) and what programs/functions can be funded by the tax. The Hancock Amendment limits the amount of revenue that can be generated by taxes in Missouri.
Tax liability can be reduced through various mechanisms, including tax credits, deductions, exemptions and exclusions. However, there are tradeoffs between tax burden and the availability of public services. These tradeoffs are often different based on the type of tax break, who qualifies, and where qualified taxpayers are located.