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Wednesday, Aug. 26, 2020

Does a state control the taxing power of its cities?

Allegra Taylor, Gigafact
yes

Cities, towns and other municipalities are granted limited taxing power by their individual state constitutions, but that authority is subject to laws set out by state legislatures. This means that states can pass bills that modify or place new restrictions on cities’ taxing power.

Tax authority granted to local government bodies varies widely from state to state. Local governments are usually authorized to impose taxes on property, but some states allow their municipalities to collect income or sales taxes as well. No state uniformly authorizes its municipalities to collect all three: income, sales and property taxes.

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