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Property and other local taxes often provide the majority of funds for a municipality, along with "municipal aid" funds that may be provided from state (or county) income, according to various criteria (population, assessed values, etc). There may also be private sources, such as foundations or other donors who earmark funds for municipal efforts (park maintenance or the like). Some states also allow towns and cities to collect their own sales taxes on goods or services. Then there are fees such as business licenses, building permits, subdivision review and impact fees, fire inspections, health licenses, and many other fees collected by a municipality for the privilege of doing business or having a home there (dog license, parking permit, water and sewer, solid waste disposal, sidewalk assessment, etc), which may or may not exceed the actual cost of providing the respective service. Furthermore, there are fines, penalties and interest: parking fines, other code violations, late payments fines and interest. Some municipalities finance specific projects with bonds or other debt instruments, or may even operate services that generate "business" income to the city, such as amusement or museum concessions, town forest timber sales, or rental of municipal facilities for private parties.

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