A tax collection fund that collects property taxes and then distributes them to local governmental units is an example of a(n):

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Agency funds are used to account for resources held by a government in a purely custodial capacity. They involve collecting money or other resources from one or more entities and distributing those funds to one or more parties. In the case of a tax collection fund that collects property taxes and then distributes them to local governmental units, the government is acting as an agent, collecting and disbursing funds without actually owning those funds. This is characteristic of an agency fund.

A Tax Collection Fund That Collects Property Taxes and Then