Mexico is a Federal Republic made up of two subnational levels of government: the Federative Entities (States) and the Municipalities.
Both the National Political Constitution and the State Constitutions recognize municipalities as free and with autonomy to administer their Municipal Treasury. The national legislation provides general guidelines for the Municipal Tax System, but its regulation is determined by local norms (State Constitutions, Organic Laws, of Finance and Municipal Revenues, among others).
One of the main sources of resources for subnational governments (NSGs) are federal transfers, which are mainly composed of Federal Participation and Contributions, regulated mainly by the System and Fiscal Coordination Agreements.
Regarding own resources, the Municipalities can tax real estate through taxes and contributions and can set bases and rates with the authorization of the Local Assembly. Local governments also have income from the rights, products and uses that they set.
In addition, they can access other financing mechanisms for their urban development, through internal debt, which is also regulated with local standards, private investments, and international cooperation funds.
Mexico is a federal country with three levels of government: national, states, and municipalities. Compared to other federal countries, the national government has a greater influence on issues related to land use and land use planning. The Mexican constitution specifies that the municipalities are the authorities in charge of planning and can decide on land use as long as they take into account other constitutional provisions and guidelines of the higher levels of government.