Which of the following is generally the best measure of fiscal capacity for local governments?

Question

Quizplus · Accepted Answer

Assessed valuation per capita is the best measure of fiscal capacity for local governments as it reflects the taxable property value in the area, which is a reliable indicator of the potential revenue that can be generated through property taxes. Income per capita and per capita retail sales can be influenced by factors such as demographics and external economic conditions, while per capita expenditure does not account for a government's revenue-raising ability.

Which of the Following Is Generally the Best Measure of Fiscal