(1)The governor shall constitute a Finance Commission to review the financial position of the Municipalities and make recommendations to the Governor as to -(a)The principals which should govern, -(i)The distribution between the State and the municipalities of the net proceeds of the taxes, duties, tolls and fees leviable by the State, which may be divided between them(ii)The determination of taxes, duties, tolls and fees, which may be assigned to, or appropriate by the municipalities,(iii)The grants-in-aid to the Municipalities from the consolidated fund of the State,(b)The measures needed to improve the financial position of the Municipalities.(c)Any other matter referred to the Finance Commission by the Government in the interests of sound finance of the Municipalities.(2)The Finance Commission shall be composed of one or more persons to be appointed by the Governor in accordance with the procedure that may be prescribed in this behalf.(3)The conditions of service and tenure of the Finance Commission shall be as such as the Governor may by rules prescribed.(4)The Finance Commission shall determine their procedure and shall have such powers in the performance as provided in this Act and as may be further directed by the Government.(5)The Governor shall cause every recommendation made by the Finance Commission under this section together with and explanatory memorandum as to the action taken thereon to be laid before the State Legislative Assembly.Chapter - II Tax on Lands and Buildings
