Munic.Taxing Power

DRAFT CSC, Title 7. Municipal Affairs

CHAPTER 9

Municipal Taxing Power

§ 1401. Delegation of power to tax.

§ 1402. Limitations.

§ 1403. License.

§ 1404. Reserved power.

§ 1401. Delegation of Power to Tax.

Pursuant to Section 7 of Article VIII of the Chuuk Constitution, the power to assess, levy, and collect taxes be and the same is hereby delegated to the municipal governments of the State of Chuuk. Each municipal government at its own discretion may enact ordinances to that effect.

Source: CSL 4-98-35, § 1.

Editor's note: CSL 4-98-35 that created this Chapter was signed into law by the Governor on September 21, 1998.

§ 1402. Limitations.

The power to tax granted herein does not authorize any municipality to assess, levy or collect any tax on the followings:

(1) tax on real property which is prohibited by Section 8 of Article VIII of the Chuuk State Constitution;

(2) tax which burdens or regulates inter-municipal commerce which is prohibited by Section 7 of Article XIII of the Chuuk State Constitution;

(3) surtax on subjects which have been preempted by taxes assessed, levied, and collected by State law; or

(4) tax on subject that is preempted by the Constitution and laws of the Federated States of Micronesia.

Source: 4-98-35, § 2.

§ 1403. License.

Each Municipality may enact an ordinance requiring a person to obtain and pay for a business license before engaging or continuing in a business within the municipality in which the business is located. In such event, the following shall apply:

(1) A business shall not be required to have more than one license for the same line of business at any one location within the municipality. For the purpose of this Subsection a "line of business" means the products or services that are sold through a single business entity identified on the basis of whether it is a sole proprietorship, partnership, or corporation.

(2) The amount of license tax to charge a business may be established by each municipal government through a licensing ordinance, but such tax shall not exceed $1,000.00 per year for any type of business.

(3) roadside vendor license tax is $5.00 per annum. For the purpose of this ~~Act~~ Chapter, a roadside vendor is limited only to local fish and farm produce temporary and not permanent in nature. Any roadside vendor other than this type is prohibited under this ~~Act~~ Chapter.

Source: 4-98-35, § 3, modified.

§ 1404. Reserved Power.

Notwithstanding the provisions of this ~~act~~ Chapter, the State hereby expressly reserved the right to enact legislation to assess, levy, and collect taxes on any subject for which a tax has been assessed and levied by ordinance by any of the municipality in the State of Chuuk. In the event that the State has enacted a legislation on that same subject, the enactment of such legislation automatically repeals the ordinance on the same subject.

Source: 4-98-35, § 5, modified.

	DRAFT CSC, Title 7. Municipal Affairs
	CHAPTER 9 Municipal Taxing Power § 1401. Delegation of power to tax. § 1402. Limitations. § 1403. License. § 1404. Reserved power. § 1401. Delegation of Power to Tax. Pursuant to Section 7 of Article VIII of the Chuuk Constitution, the power to assess, levy, and collect taxes be and the same is hereby delegated to the municipal governments of the State of Chuuk. Each municipal government at its own discretion may enact ordinances to that effect. Source: CSL 4-98-35, § 1. Editor's note: CSL 4-98-35 that created this Chapter was signed into law by the Governor on September 21, 1998. § 1402. Limitations. The power to tax granted herein does not authorize any municipality to assess, levy or collect any tax on the followings: (1) tax on real property which is prohibited by Section 8 of Article VIII of the Chuuk State Constitution; (2) tax which burdens or regulates inter-municipal commerce which is prohibited by Section 7 of Article XIII of the Chuuk State Constitution; (3) surtax on subjects which have been preempted by taxes assessed, levied, and collected by State law; or (4) tax on subject that is preempted by the Constitution and laws of the Federated States of Micronesia. Source: 4-98-35, § 2. § 1403. License. Each Municipality may enact an ordinance requiring a person to obtain and pay for a business license before engaging or continuing in a business within the municipality in which the business is located. In such event, the following shall apply: (1) A business shall not be required to have more than one license for the same line of business at any one location within the municipality. For the purpose of this Subsection a "line of business" means the products or services that are sold through a single business entity identified on the basis of whether it is a sole proprietorship, partnership, or corporation. (2) The amount of license tax to charge a business may be established by each municipal government through a licensing ordinance, but such tax shall not exceed $1,000.00 per year for any type of business. (3) roadside vendor license tax is $5.00 per annum. For the purpose of this ~~Act~~ Chapter, a roadside vendor is limited only to local fish and farm produce temporary and not permanent in nature. Any roadside vendor other than this type is prohibited under this ~~Act~~ Chapter. Source: 4-98-35, § 3, modified. § 1404. Reserved Power. Notwithstanding the provisions of this ~~act~~ Chapter, the State hereby expressly reserved the right to enact legislation to assess, levy, and collect taxes on any subject for which a tax has been assessed and levied by ordinance by any of the municipality in the State of Chuuk. In the event that the State has enacted a legislation on that same subject, the enactment of such legislation automatically repeals the ordinance on the same subject. Source: 4-98-35, § 5, modified.