24 MISC. PUBLICATION 218, U. S. DEPT. OF AGRICULTURE 
States and is spent by the State governments. In turn, a large share 
of the State expenditures, out of State tax revenues, for education 
and highways is paid to the minor civil divisions and is spent by the 
local governments. For example, of the extremely large share of 
State expenditures going for highways in Vermont, nearly one-half is 
not spent directly by the State but rather by the towns. 
REVENUES 
The total tax revenues of all the State governments amounted to 
1,612 million dollars in 1929 (8, p. 110). This was a little less than 
half the amount of the tax revenues of the Federal Government. 
State revenues were derived from the various forms of taxation as 
indicated in table 7 (3, pp. 110, 112). 
TABLE 7.—Taz revenue of States, 1929 
Percent- | Percent- 
Source Amount age of Source Amount age of 
total total 
General property taxes__-_-_| $350, 000, 000 2157))||)income|taxeseae eee $75, 000, 000 4.6 
Licenses and permits_____- 287, 000, 000 1728)| (HR olletaxes: sted eee eek 4, 000, 000 ee 
Motor-vehicle registration_| 287, 000, 000 17.8 || Other special taxes__.____- 69, 000, 000 4.3 
Gasoline taxes___---------- 282, 000, 000 17.6 os 
Meathitaxess aes ewe ee 149, 000, 000 9.2 oh Bay) aa Sa 1, 612, 000, 000 100.0 
Special property taxes____- 109, 000, 000 6.8 
While there is by no means complete segregation of revenue sources 
as between the Federal Government and the States, comparison of 
their respective tax systems will show that they are marked by cer- 
tain distinctive characteristics. Both the Federal Government and 
some of the States make use of the income tax. Eleven States re- 
ceived a substantial revenue from this source in the fiscal year 1929. 
But whereas the income tax is the chief reliance of the National Govy- 
ernment, producing 66 percent of the tax revenue in 1929, only eight 
States derived as much as 10 percent of their tax revenue from this 
tax in that year. The States, of course, obtain no revenue from 
customs. Excise taxes are as yet unimportant as a source of State 
revenue. Death taxes are an important source of revenue (over 10 
percent of the total) in 9 of the 48 States, but unimportant as a 
source of Federal revenue. 
The general property tax remains as the principal source of State 
revenue in the United States, although its importance in this connec- 
tion is declining from year to year. In 1929, 2 of the States (Penn- 
sylvania and North Carolina) did not use the general property tax as 
a source of State revenue, but in 4 other States (Arizona, Utah, 
Nevada, and Nebraska) it still accounted for more than 50 percent 
of the total (table 8). The income tax is gradually becoming more 
important as a source of revenue for State governments. At present 
(1933) it is employed by some 20 States. 
