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Why do people in the state of NC living in the county only pay county tax and people living in the city pay both county and city tax?

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A city tax applies to those who live in the city, or sometimes a city tax applies to those who live or work in the city.  City taxes pay for things that may be only in the city, like a stadium or performing arts center or convention center, or extra police, or maybe a transit system.

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States-Counties-Cities

I think this is what you are looking for. http://en.wikipedia.org/wiki/List_of_U.S._cities_in_multiple_counties