Constitution Section 243X — Power to impose taxes by, and Funds of, the Municipalities

Part IXA — THE MUNICIPALITIES

Constitutional

Summary

A state legislature can pass a law that allows a municipality to collect its own taxes, duties, tolls, and fees, following set procedures and limits. The law can also let the state government assign some of its own collected taxes to the municipality for specific purposes. Additionally, the law can provide for grants to be given to municipalities from the state’s main fund, and it can create separate funds to hold all money received by or for the municipality, with rules for how that money can be taken out.

Official Text

The Legislature of a State may, by law,—

(a) authorise a Municipality to levy, collect and appropriate such taxes, duties, tolls and fees in accordance with such procedure and subject to such limits;

(b) assign to a Municipality such taxes, duties, tolls and fees levied and collected by the State Government for such purposes and subject to such conditions and limits;

(c) provide for making such grants-in-aid to the Municipalities from the Consolidated Fund of the State; and

(d) provide for constitution of such Funds for crediting all moneys received, respectively, by or on behalf of the Municipalities and also for the withdrawal of such moneys therefrom,as may be specified in the law.