How do local governments get their revenue in U.S.? and what are the sources?

Answer 1

Local governments tax real estate. Some also charge a hotel tax, income, and a sales tax. State and federal governments provide some local revenues.

Here's a breakdown for the sources of revenues in local areas of Indiana.

http://www.agecon.purdue.edu/crd/Localgov/Second%20Level%20pages/topic_localrev_overview.htm