Sources of Revenue

Local Revenue Sources

Tax Revenue

Local governments can tax properties to obtain revenue that is used for shared services. They can also charge fees for some services. The most common example of a fee-based service is water and sewer.

Bonds

Local governments can also go to the people to request funding for bonds to pay for large capital projects or extra tax money to pay for specific purposes like funding for a library.

Property taxes

Property taxes are the most common source of revenue for libraries and local governments.

Property Values

The Montana Department of Revenue appraises property to determine its taxable value. That information is sent to local governments. It is used to determine how much the local government needs to assess property owners in order to meet the budget requirements of local government services. 

Tax Revenue is Limited

There are limits on how much money a local government can raise. MCA 15-10-420 provides guidance to local governments on how to calculate property tax levies to stay within allowable limits.

Oil and Gas

Oil and gas tax proceeds are common in areas of Montana where there is a lot of natural resource extraction. Companies that extract natural resources pay a tax on the extraction. These taxes are provided to local governments and are used by local governments to pay for services.