Revenue Sources Overview

As a home rule state, Oregon cities have general authority to tax and impose fees.  However, there are a few areas where the state has preempted cities’ ability to tax or impose fees  or otherwise imposed revenue restrictions. For example, cities are restricted on how they spend lodging tax revenues and construction excise revenues, and cities are restricted on both the type and the amount of system development charges that may be imposed.   

Property taxes are cities’ primary revenue source.  Property taxes must be referred to the voters, but many taxes and fees can be imposed by the city council.  Cities are often struggling with how to pay for city services and balance their budget. Thus, the LOC has created a chart of the various revenue sources cities might consider utilizing.  In addition, the state shares some state revenues with cities; see the LOC’s State Shared Revenue Report for more details.