What type of cooperative agreement do local governments use to create a Joint Powers Agreement?

Prepare for the CDFA Deputy Commissioner Tax Duties Exam. Use flashcards and multiple choice questions, each with comprehensive explanations. Equip yourself for success!

The correct choice is a legal contract for services. Joint Powers Agreements (JPAs) are formal arrangements under which two or more entities—often local governments—come together to share resources, services, or responsibilities for a mutual advantage. The foundational document establishing these arrangements is indeed a legal contract, as it outlines the rights, obligations, and mutual agreements between the parties involved.

In this context, the legal framework provided by a contract ensures that all entities have a clear understanding of their roles and the intended outcomes of the partnership. The contract must also comply with applicable laws and regulations governing such agreements between governmental bodies, solidifying the legitimacy and enforceability of the arrangement.

The other options do not accurately represent the formal nature of JPAs. A corporate contract typically refers to agreements made within the context of corporate entities, which is not applicable here. A cooperative resolution may suggest a more informal understanding or agreement but lacks the legal binding characteristic essential for JPAs. Lastly, a nonprofit agreement pertains to arrangements made specifically by nonprofit organizations, which are distinct from the government-focused nature of Joint Powers Agreements. Thus, the legal framework established by a contract for services is essential for the successful functioning of a JPA.

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