Article 104b: [Financial assistance for investments] 1. To the extent that this Basic Law confers on it the power to legislate, the
Federation may grant the Länder financial assistance for particularly important
investments by the Länder and municipalities (associations of municipalities)
which are necessary to:
1. avert a disturbance of the overall economic equilibrium;
2. equalise differing economic capacities within the federal territory; or
3. promote economic growth.
In deviating from the first sentence, the Federation may grant financial
assistance even outside its field of legislative powers in cases of natural
disasters or exceptional emergency situations beyond governmental control and
substantially harmful to the state's financial capacity.
2. Details, especially with respect to the kinds of investments to be promoted, shall
be regulated by a federal law requiring the consent of the Bundesrat or by an
executive agreement based on the federal budget law. The duration of the
grants shall be limited and the grants must be reviewed at regular intervals with
respect to the manner in which they are used. The financial assistance must be
designed with descending annual contributions.
3. Upon request, the Bundestag, the Federal Government as well as the Bundesrat
shall be informed about the implementation of such measures and the
improvements reached.
Article 105: [Distribution of powers regarding tax laws] 1. The Federation shall have exclusive power to legislate with respect to customs
duties and fiscal monopolies.
2. The Federation shall have concurrent power to legislate with respect to all other
taxes the revenue from which accrues to it wholly or in part or as to which the
conditions provided for in paragraph (2) of Article 72 apply.
2a. The Länder shall have power to legislate with regard to local taxes on
consumption and expenditures so long and insofar as such taxes are not
substantially similar to taxes regulated by federal law. They are empowered to
determine the rate of the tax on acquisition of real estate.
•
Subsidiary unit government
