Funding education with property taxes has always been controversial. This paper examines taxation and the sources of revenue for education. The historical context in which tax and revenue sources have supported education in the United States is described. Also discussed are state tax-policy goals and education funding, and the embattled role of the property tax in funding education. Next, nontax revenues for education, such as state lotteries and school-district entrepreneurship, which have significant equity concerns are discussed. The paper conclude with a series of conclusions and considerations for state policymakers. As states grapple with support levels for education they will also face the responsibility for determining or amending the overall tax structure and a series of overriding policy questions, such as: (1) What level of support should legislatures provide for education? (2) What amounts need to be spent to provide educational opportunity for all children? and (3) How much money does the state have to spend? The appendix highlights the principles of a high-quality state revenue system. (Contains 31 endnotes and 47 references.) (LMI)