Municipal Tax Collection For Road Construction Projects

It is common for local authorities to exceed their fiscal borders when levying construction taxes for the repair or construction of streets or roads. We must distinguish among three different types of municipal taxes related to road construction: construction tax, construction permits, and the right to extract non-metallic minerals. While all of these are municipal levies permitted by law, construction tax is the only one where the work on which the tax is imposed does not exceed the boundaries of municipal lands.

A. The Construction Tax

The municipal tax authority is regulated by the Constitution, Law 55 of 1973, Act 106 of 1973 as amended by Act 52 of 1984, and in the Municipal Agreements, special laws and the rulings of the Supreme Court in constitutional and administrative proceedings.