Also, in a few cases two localities operate partial or fully combined systems. Revenue capacity is a broad measure of the local tax base. It includes the true value of real estate as well as direct measures or proxies for other local tax bases. The Commission on Local Government estimates per capita local revenue capacity. Income tax liability refers to the state individual income tax paid by residents of each locality.
Covered wages refers to wages paid to workers covered by unemployment insurance.
Although the series covers the bulk of wage and salary employees it does not include railroad workers or the military. Also, it excludes self-employed workers. The easiest way to analyze the data is in terms of percent of state total. The distribution appears to be a function of the distribution of the needy population and the willingness of localities to provide assistance. Revenue capacity and income tax liability are often correlated.