The budget is the financial blueprint for municipalities. By documenting the allocation of funds, the budget reflects the policies and projects that are priorities to the Township. As per section 3201 of the Second Class Township Code, the Township's fiscal year begins on the first day in January and ends on December 31st of that calendar year. Generally, a proposed budget for the ensuing fiscal year is submitted by the Township secretary in November and approved by the Board of Supervisors in December. The Second Class code permits the Supervisors to amend the budget following any municipal election. The amended budget must be adopted by February 15th and "no proposed amended budget shall before final adoption be revised upward in excess of ten percent in the aggregate or in excess of twenty-five percent of the amount of any major category."
Property taxes are the primary source of revenue for Tobyhanna Township. The millage rate represents the tax dollars collected per every $1,000 of assessed value. Tobyhanna Township has a current rate of 15.19 mills. Thus, property owners pay $15.19 per every $1,000 of their assessed value. Only 13.74 mills of the 15.19 tax rate are dedicated to Township functions. A fire equipment and apparatus fund has been established to provide for purchase of related articles. The source of revenue of this fund is .70 of the 15.19 millage rate. In addition to this fund, a tax levy of .75 mills was added for the purpose of generating revenue for Clymer Library. This levy was added after voters approved a 1994 referendum.
In addition to property taxes, the Township also collects a 1% Earned Income Tax and Local Services Tax in the amount of Fifty-Two Dollars ($52.00). Other sources of revenue include permit fees, fines, intergovernmental transfers, interest and retained earnings from prior years.