Section 503C in Karnataka Municipal Corporations Act, 1976
503C. Finance Commission.
(1)The Finance Commission constituted under section 267 of the Karnataka Panchayat Raj Act, 1993 shall also review the financial position of the Corporations and make recommendations to the Governor as to,-(a)the principles which should govern,-(i)the distribution between the State and Corporations of the net proceeds of the taxes, duties, tolls, and fees leviable by the Government which may be divided between them and allocation between the Corporations their respective shares of such proceeds;(ii)the determination of the taxes, duties, tolls, fees which may be assigned to or appropriated by, the corporations;(iii)the grant-in-aid to the Corporations from the Consolidated Fund of the State;(b)the measures needed to improve the financial position of the Corporations;(c)any other matter referred to the Finance Commission by the Governor in the interest of sound finances of the Corporation.(2)The Governor shall cause every recommendation made by the Commission under this section together with an explanatory memorandum as to the action taken thereon to be laid before both the House of the State Legislature.]
