§ 99504 Tax Administration Contract Reimbursement

• •Local governments must work with the state to handle taxes they create.
• •The state gets paid back for the work it does to manage these taxes.
• •The local government also pays for the state's setup costs to start managing the tax.

A city creates a new sales tax to fund better schools.

The city must ask the state to collect this tax. The state will charge the city for the work it does, like setting up systems and collecting the money. The city has to pay these costs.