Ohio Government/Constitution Practice Exam

Which taxes primarily fund state government in Ohio?

1. Income tax, sales tax, and excise tax

2. Income tax, property tax, and corporate tax

3. Income tax, sales tax, and property tax

4. Sales tax, payroll tax, and franchise tax

The correct answer is: Income tax, sales tax, and property tax

The primary funding sources for state government in Ohio include income tax, sales tax, and property tax. Income tax is a major revenue source, collected from individuals and businesses based on their earnings, which provides significant funding for public services such as education, health care, and infrastructure. Sales tax is also a critical component, as it is levied on the sale of goods and services, contributing to the state budget. Property tax, while often associated with local government funding, does also play a role in supporting state initiatives and programs. While other options include some valid tax types, they don't collectively represent the primary funding sources used by the state. For instance, corporate tax and excise tax, while relevant, are not as significant in comparison to the trio of income tax, sales tax, and property tax, which together form the backbone of Ohio's state funding. This combination ensures a diversified revenue stream that can address various state needs and obligations.