Is it simply limited to scholarships, or does the college want to promote the local culture? Thanks for any responses! 
[First Post] How much does being a native resident of the state/city of a college affect admissions?
What does “native” specifically mean?
Private colleges especially, want to maintain positive “town-gown” relationships and will strive to admit local kids, whenever possible. How much will it help? Who’s to say?
And of course public Us are in place to serve in-state residents. Frequently OOS stats have to be higher for admission
Check the website of the local school as some may have special scholarships for local students. Generally it’s for students from the local public school district and not private schools. Colleges and Universities are generally non-profits so get tax exempt status and I believe this is one way they give back to the local community or at least make the argument to maintain their status of not paying local taxes. I know that UPenn gives special consideration to Philadelphia School District students in admission, they also give PSD students free tuition to special summer academies and other programs.
Let me just reiterate that I think attending the local public schools is the important factor and not just residence in the city/town.
For state universities, state (and sometimes local) residency typically matters.
Not sure if “native” and “resident” belong together as “native resident”. “Native” is generally defined as place of birth. My children were born in a different state than where we now live. Being a “native” of that state does not get them instate tuition at that state’s public universities.
We are, however, “residents” at another state and being a resident DOES qualify them for instate tuition here, even though they weren’t born here.
It depends on the school, my sense from a certain ivy in a the largest city in the US is that they strive for geographic diversity.
I got the impression at Penn that they like taking kids from the Philly school system. Of course, it also means that they know the schools very well.
Born/raised in the city/state.
Other than the years shown on your HS transcript, how would the college even know you were born/ raised in the state?