taxation power of ulb

1. Taxation powers of ULBs: 12th Schedule
(Article 243X)
The 74th Amendment Act envisaged that elected Municipalities function as effective local
self-government institutions preparing and implementing plans for economic development
and social justice and discharging civic responsibilities envisaged in the 12th Schedule
Article 243X of the Constitution only stipulates that a State Legislature may,by law,
i. Authorize a Municipality to levy, collect and appropriate such taxes, duties, tolls
and fees in accordance with such procedure and subject to such limit;
ii. 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;
iii. Provide for making such grants-in-aid to the Municipalities from the
consolidated Fund of the State and
iv. Provide for the 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 there from, as may be prescribed by law.