Tax Types For each scenario, decide what type of tax might be used (income tax, payroll tax, sales tax, property tax, corporate income tax) and if this would be collected by the federal, the state, or the local government. Primary Type of Tax(es) Used Federal / State / Local Government Ex. Funding is needed to pay for Sales tax new fire trucks and police cars. Property tax Local Funding is needed to buy desks for the U.S. Department of Energy Funding is needed to pay school board employees Funding is needed to help the unemployed find work. Funding is needed to pay for cancer research