Municipal Government Tax Power

In addition to a tax or license fee it may lawfully impose, a municipal government may impose an annual license fee not exceeding $100 for a commercial activity conducted in the municipality. The Government retains the paramount power to examine, restrict, close, penalize, or otherwise regulate, the conducting of a commercial operation, for the public welfare.

Cross reference:

The constitutional provisions on Municipal Government are found in Kosrae Const., Art. VIII. The statutory provisions on Municipal Government are found in Title 8 of this code.

Section 9.502. Limitation.

(1) A municipal government may not tax or license:

(a) the ownership or use of a motor vehicle, or use of a public road;

(b) the sale, possession or consumption of alcoholic drink.

(2) A municipal government may not impose a tax on a sale or a transaction taxed pursuant to chapter 2 or 3, or goods made or produced in the State.

Cross reference:

The constitutional provisions on Municipal Government are found in Kosrae Const., Art. VIII. The statutory provisions on Municipal Government are found in Title 8 of this code.