Sales taxes levied by a county government are shared with the local municipal government. The municipal government chooses to use the intergovernmental revenues for drug enforcement activities. In the government-wide statement of activities, the municipal government would report the sales taxes as

Question

Quizplus · Accepted Answer

Sales taxes are considered general revenues because they are not restricted to specific programs or purposes, even if the municipal government chooses to use them for a specific activity like drug enforcement.

Sales Taxes Levied by a County Government Are Shared with the Local