Municipal tax powers define what revenue tools municipalities are legally authorized to use. Provincial legislation grants these powers, which vary significantly across provinces. All municipalities can levy property taxes, but other options like business taxes, local improvement levies, and development charges depend on provincial authorization. Most provinces restrict municipal access to income, sales, or consumption taxes available to senior governments. Municipal associations advocate for expanded tax powers to reduce property tax reliance and address funding gaps. Tax power debates involve questions about local autonomy, fiscal accountability, economic impacts, and appropriate revenue sources for different service types.