§ 2. The taxes upon the transfer of tangible property (II and III) belong to the state in whose territory these may be situated.
§ 3. The tax upon transfer by reason of death, of intangible property, including securities and credits, belongs to the State in whose territory the values of the inheritance may be liquidated or transferred to the heirs, even though the succession may have opened abroad.
§ 4. The States may not tax securities of the public debt issued by other juridical persons of national public right to an extent greater than that established for their own obligations.
§ 5. The tax on sales and consignments shall be uniform, without distinction as to origin or destination.
§ 6. In exceptional cases, the Federal Senate may authorize the increase for a fixed time of the tax upon exportation up to a maximum of 10% ad valorem.
Art. 20—When the state collection of taxes, except that of the export tax, shall exceed in any municipality other than that of the capital, the total of local revenues of whatever nature, the States shall return (to such municipality) annually, 30% of the excess collected.
Art. 21—The Union and the States may decree other taxes in addition to those attributed to them by this Constitution, but a federal tax shall exclude an identical state tax. The States shall make collection of such taxes, and, as this is effected, shall deliver 20% of the proceeds to the Union and 40% to the municipalities where the collection has been effected.
Art. 22—The financial administration, especially the execution of the budget, shall be supervised in the Union by the National Congress, with the aid of the Tribunal of Accounts, and in the States and municipalties according to the manner established in their Constitutions.
Sole Paragraph—In the preparation of the budget the provisions of Articles 73 to 75 shall be observed.
Art. 23—The States shall not intervene in the municipalities, except in order to regularize their finances, when:
a)—there shall occur lack of punctuality in the service of a loan guaranteed by the State;
b)—they fail to pay, for two consecutive years, their funded debt.
Art. 24—The State is permitted to create an organ for technical assistance to municipalities.
Art. 25—The administrative and judicial organization of the Federal District and of the Territories shall be governed by federal law with observance of the provisions of Article 124.
Art. 26—The Federal District shall be administered by a Mayor appointed by the President of the Republic, and a Chamber elected by the people, with legislative functions.
§ 1. The appointment shall be made after the Federal Senate has given its consent to the name proposed by the President of the Republic.
§ 2. The Mayor shall be dismissible at will.
§ 3. The Judges of the Tribunal of Justice shall receive compensation not inferior to the greatest remuneration of the magistrates of equal rank in the States.
§ 4. The same taxes attributed by this Constitution to the States and to the municipalities shall belong to the Federal District.
Art. 27—The Union, the States, the Federal District and the municipalities are forbidden to establish limitations upon traffic of whatever nature by means of interstate or intermunicipal taxes, except for the collection of tolls or of taxes destined exclusively for the repayment of expenses incurred for the construction and for the maintenance and improvement of roads.
Art. 28—The autonomy of municipalities shall be assured:
I—by the election of the Mayors and of the Aldermen of the Municipal Chamber;
II — by self-administration in all matters concerning its own interest and, especially:
a)—the determination and collection of taxes within its jurisdiction and the application of its income;
b)—the organization of their local public services.
§ 1. The Mayors of the capitals and those of the municipalities wherever there should be natural hydro-mineral resorts, when improved by the State or by the Union may be appointed by the Governors of the States or of the Territories.
§ 2. The Mayors of such municipalities as federal law, at the indication of the National Security Council, may declare as military bases or ports of exceptional importance for the external defense of the Country, shall be appointed by the Governors of the States or of the Territories.
Art. 29—In addition to the revenue which is attributed to them by virtue of Paragraphs 2 and 4 of Article 15 and of the taxes which in whole or in part may be transferred to them by the State, the following taxes shall belong exclusively to the municipalities:
I—urban land and buildings;
II—license;
III—industries and professions;
IV—public diversions;
V—acts of their economy or matters belonging to their particular sphere.
Art. 30—The Union, the States, the Federal District and the municipalities shall have power to collect:
I—tax on improvements when there shall be an increase in value of real property, as a consequence of public works;
II—taxes;
III—any other revenues which may arise out of the exercise of their attributes and of the utilization of their properties and services.
Sole Paragraph—The tax on improvements cannot be demanded in amount greater than the expense realized or the increase in value which may accrue to the real property benefited by the work.
Art. 31—The Union, the States, the Municipalities and the Federal District are forbidden:
I—to create distinctions between Brazilians or preferences favoring any States or municipalities as against any others;
II—to establish, subsidize or embarrass the exercise of religious sects;
III—to have relations of alliance or dependence with any sect or church, without prejudice to reciprocal collaboration in furtherance of the collective interest;
IV—to refuse to honor public documents;
V—to levy tax upon:
a)—Property, revenues and services of one another, without prejudice, however, to the taxation of public services granted under concession with observance of the provisions of the sole paragraph of this article;
b)—temples of any sect, property and services of political parties, educational institutions, and social welfare (institutions), provided that their income is applied entirely within the country for the proper purposes;
c)—paper destined exclusively for the printing of newspapers, periodicals and books.
Sole Paragraph—Public services granted under concession do not enjoy tax exemption, except when so determined by the competent power or when the Union may institute such exemption in a special law, with respect to its own services, having in view the common interest.
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