Do all parking meters take dollar bills?

No.

The machines some call 'parking meters' are actually either 'pay & display' where you pay a central machine and place the receipt on your dash or 'pay by space' where you pay the machine and it knows which space has paid (so you do not need to place a receipt on your dash - the officer gets a report from the machine). These units both can be set up to accept coins, cash or credit cards depending on what the owner/operator wants. The bill acceptors cost about $2k each, require more power than a parking meters 9volt battery and need a lot of room for the unit and to store the bills.