How Taxes are Used

All services provided by Montgomery County Government are made available as a result of tax revenues collected. The greatest amount of revenue received is from sales tax and property taxes.

The Trustee may invest tax dollars and other sources of revenue in order to earn interest on the money collected. These investments enable county offices to upgrade outdated equipment, pay the debt on Capital Projects (e.g. school buildings) and to return more money to the County's General Fund.

By investing county revenue from various county offices along with county taxes, we can obtain the highest and best possible rate for each dollar we receive. Pooling our tax dollars with income from other county offices gives us a larger dollar amount to invest and, therefore, a larger return.

June 30, 2007-FY 2006-07; County Idle Funds Investment Interest Revenue increased 87.83% over FY 2005-06 Investment Interest Revenue. This is a $3,474,399.00 increase in revenue not anticipated in the FY2006-07 Budget.

The Trustee's office keeps up with the latest market changes on a daily basis. We invest in CDs (certificates of deposit) with banks that are a member of the State of Tennessee Bank Collateral Pool, U.S. government bond issues, commercial paper, repurchase agreements and with the local government investment pool (LGIP). With the latest technology at our disposal we can make prudent decisions about how and where to invest you tax dollars to get the highest amount of return.

If your County tax dollars were not invested how much additional property tax would you have to pay? Example - On a $100,000.00 appraised value home; the 2007 County Property Tax is $785.00. Based on interest revenue returns for fiscal year 2006-2007 and property appraised at $100,000.00; the tax payer would pay approximately $83.40 additional county taxes.

County property taxes for the 2009-2010 fiscal year are levied at a rate of $2.88 per $100 of assessed value. The 2009 tax rate is divided between County General Government fund, Clarksville-Montgomery County School System fund, Road fund, General Purpose Capital Projects Fund, Schools Capital Projects Fund and Debt Service Fund.

Below is a listing of how the $2.88 is allocated for fiscal year 2009: