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They belong to The Ministry of the Interior and Health. These administrations are not subordinate to the regional councils, but rather the direct presence of the state (similar to governorates or prefectures in certain countries).A state administration office exists in each region, supervising the daily business of municipalities and regions, and functioning as a body of appeal for citizens who wish to complain over a decision by the municipality or region.Therefore, they do not pay the health care tax levied by the central government from 1 January 2007 and did not pay the tax levied by the counties prior to 2007 or any municipal taxes.
Each office is led by a Director of the State Administration (forvaltningsdirektør) who is a university graduate of law.
As they are not municipalities they cannot "shuffle money around" from one area of expenditure to another area of expenditure, that is, use money for any other purpose than has been stated specifically, but must pay money not used back rather like departments or agencies of the central government.
They do not themselves levy any taxes, but are financed only by block grants which are coming from a tax levied by the central government until 2018 and the ordinary income tax and partly from taxes collected by their constituent municipalities.
In 2012 this tax was lowered to 7%, 2013 6%, 2014 5%, 2015 4%, 2016 3%, 2017 2%, 2018 1%.
This follows an agreement on taxes by the Folketing from 2009.