Power to impose taxes by, and Funds of, the Municipalities
Article 243X — Power to impose taxes by, and Funds of, the Municipalities
The Legislature of a State may, by law,—
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(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;
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(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;
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(c) provide for making such grants-in-aid to the Municipalities from the Consolidated Fund of the State; and
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(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.
Plain English Summary
This article gives the State Legislature the power to create laws that allow Municipalities (city or town bodies) to collect certain taxes, fees, and tolls. It also allows the State Government to assign some of these revenues to the Municipalities and provide them with funds to manage their finances.
Key Points
- The State Legislature makes the law authorizing Municipalities to impose specific taxes, duties, tolls, and fees.
- The State Government can assign certain taxes collected by the State for municipal purposes to the Municipality.
- The State can provide financial assistance (grants-in-aid) to Municipalities from the State's main fund.
- It mandates the creation of specific funds to track all money received by and on behalf of the Municipalities.
Why It Matters
This article is crucial because it establishes the legal framework for how local bodies like Municipalities can generate their own revenue and receive necessary financial support from the State government to function effectively.
Landmark Judgements
No major landmark judgements.