The main goal of the project, supported by the Foundation Open Society institute-OSI ZUG, was to prepare in dept study and major set of policy recommendations on the property tax devolution and urban land development fees and charges as the devolution of the property tax and land fees is under way in the country. The specific goals of the project are: to analyze and assess the current regulatory framework in which municipalities operate, related to the urban land finance issues; to analyze and assess specific mechanisms used in elected Montenegrin municipalities and to offer suggestions regarding identified conceptual and technical difficulties. The final study has two main parts. The first part provides analysis of the current constitutional and legal framework for local urban land policy development, as well as its assessment, from the point of view of economic efficiency and consistency of existing mechanisms. The second part provides overview of five specific urban land finance systems used by the following municipalities: Bijelo Polje, Budva, Bar, Kotor, Žabljak and Nikšić. The third/final part provides some specific suggestions and recommendations derived from the conducted analysis and research. The study was prepared in electronic form and was available to the public.