The correct answer is: A) Property taxes
Property taxes are the main source of revenue for local governments in Karnataka. They are levied on the assessed value of real property, such as land and buildings. The tax rate is set by the local government and is based on the assessed value of the property. Property taxes are used to fund a variety of local government services, such as schools, roads, and libraries.
Grants from the state government are another important source of revenue for local governments in Karnataka. These grants are used to fund specific programs and projects, such as education, public safety, and economic development.
Income tax is a less important source of revenue for local governments in Karnataka. This is because the state government collects income tax and then distributes a portion of the revenue to local governments.
Sales tax is also a less important source of revenue for local governments in Karnataka. This is because the state government collects sales tax and then distributes a portion of the revenue to local governments.
In conclusion, property taxes are the main source of revenue for local governments in Karnataka. Grants from the state government and income tax are also important sources of revenue, but they are less important than property taxes.