Which type of taxes are primarily used to fund local government services?

Ad Valorem taxes are primarily used to fund local government services because they are directly based on the value of property. This form of taxation is assessed on real estate properties, such as homes and commercial buildings, and is a significant revenue source for local governments. The funds generated from these taxes support essential services such as public education, infrastructure maintenance, police and fire protection, and local government operations.

Unlike other forms of taxation, such as income taxes or sales taxes, ad valorem taxes provide a stable and predictable revenue stream for municipalities, as property values tend to rise over time, thereby increasing the tax base. This characteristic is particularly important for local governments that rely heavily on property tax revenues to maintain and improve community services.