What type of local government typically has taxing authority and serves special functions like education?

The correct answer is special districts because these entities are specifically created to provide distinct services or address particular needs within a community, such as education, healthcare, or transportation. They have their own governing boards and possess the authority to levy taxes to fund their operations.

Special districts can be formed for various purposes, including school districts, which focus on education, or utility districts, which manage local water and sewer services. They allow for targeted governance that can respond more effectively to specific local issues and provide services directly related to their defined functions.

In contrast, general-law governments operate under state law and have limited flexibility in governance and taxing authority. Home-rule governments, while they have more autonomy than general-law governments, typically manage the broader aspects of local government but are not solely focused on the specialized functions like those of special districts. Counties serve as a broader form of local government and may have taxing authority, but their primary function is to administer state laws and services at a local level rather than specialize in specific areas.