Municipalities in Iowa are heavily reliant upon property tax revenue as a means of finance; a phenomenon which many feel has negative implications for local governance. A frequently cited remedy for this is the diversification of municipal revenue sources by enabling municipalities to collect income tax. Proponents claim that doing so would allow municipal governments to become less dependent upon property tax revenue, as well as provide relief to property taxpayers in the form of lower rates and collections. The purpose of this thesis is to explore those claims by examining whether municipalities with income tax exhibit lower property taxes and are less dependent upon property tax revenue than municipalities with income tax. The study takes the form of a cross-sectional analysis of municipalities in Ohio, a state in which there are a large number of municipalities utilizing income tax, as well as a large number of municipalities that are not. The analyses show that municipalities with income tax have lower property tax rates and are less dependent upon property taxes than municipalities without income tax. Overall, the findings lend credence to claims that allowing Iowa's municipal governments to collect income tax would enable them to reduce their dependence on property tax revenue and lower property tax rates.