Revenue diversity refers to municipalities having multiple different sources of income rather than depending primarily on property taxes. Diverse revenue portfolios might include user fees, development charges, parking revenue, investment income, grants, and potentially new tools like local sales taxes, hotel taxes, or vehicle registration fees. Greater diversity reduces vulnerability to problems with any single source and can better match revenue to service demands. Canadian municipalities have less revenue diversity than their international counterparts, with property taxes dominating. Municipal associations advocate for provincial governments to authorize more diverse revenue options, though provinces have been cautious about allowing local taxation beyond property.