Ratepayers will pay $25 per annum for the next three years to repay a $575,000 loan to the Queensland Treasury Corporation.

Mount Isa City Council confirmed the loan was taken to pay off parcels of land in relation to an Indigenous Land Use Agreement (ILUA) between the Kalkadoon people, the council, and the Queensland Government in 2007.

But the new levy has been met with anger.

One ratepayer, Joe Grimaldi, said this was the first time he had heard about the Kalkadoon levy.

"Why didn't council talk about this in more detail when they released the budget?" he asked.

"This is the first time I'm hearing about this levy."

Another ratepayer who contacted The North West Star said he was appalled after hearing about the new levy.

"Where's the money going? Not to health or education. I am certain I won't be the first person who will be very vocal about this."

Mayor John Molony said the ILUA between the Government, council and the Kalkadoon people made the levy necessary.

"There are more terms included in the ILUA that council has to do for Kalkadoons," he said.

"This new levy was signed off by the previous council back in 2007, and it is a cost that has to be factored into the rates to pay off the loan."

An additional environmental levy of $15 per year has been added to rates notices.

Cr Molony said this levy was part of new Environmental Protection Agency (EPA) requirements to manage landfill passed down by the Queensland Government.

He has assured ratepayers that the levy would only be used to fund environmental projects in the city.

Ratepayers can obtain a 10 per cent discount if payment is received before August 30.

In addition, pensioners can receive a further $100 discount from council, $90 from the Queensland Government, and 20 per cent off the fire levy.