Revenue constraints are limitations on how municipalities can raise money, imposed by provincial legislation and the Constitution. Unlike federal and provincial governments that can levy income taxes, sales taxes, and other broad-based taxes, municipalities are largely restricted to property taxes, user fees, and charges authorized by provincial legislation. Some provinces cap property tax increases or limit certain fees. These constraints mean municipal revenue doesn't grow automatically with the economy or inflation—municipalities must continually increase rates to maintain services. Municipal associations advocate for expanded revenue tools, arguing that reliance on property taxes alone is inadequate for modern municipal responsibilities.