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Article 106a: [Federal grants for local mass transit]
Beginning 1 January 1996 the Länder shall be entitled to an allocation of federal tax
revenues for purposes of local mass transit. Details shall be regulated by a federal
law requiring the consent of the Bundesrat. Allocations made pursuant to the first
sentence of this Article shall not be taken into account in determining the financial
capacity of a Land under paragraph (2) of Article 107.
Article 106b: [Länder share of motor vehicle tax]
As of 1 July 2009, following the transfer of the motor vehicle tax to the Federation,
the Länder shall be entitled to a sum from the tax revenue of the Federation. Details
shall be regulated by a federal law requiring the consent of the Bundesrat.

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constituteproject.org
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Page 51
Germany 1949 (rev. 2012)
Article 107: [Distribution of tax revenue - Financial
equalisation among the Länder - Supplementary grants]
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Subsidiary unit government
1.
Revenue from Land taxes and the Land share of revenue from income and
corporation taxes shall accrue to the individual Länder to the extent that such
taxes are collected by finance authorities within their respective territories
(local revenue). Details regarding the delimitation as well as the manner and
scope of allotment of local revenue from corporation and wage taxes shall be
regulated by a federal law requiring the consent of the Bundesrat. This law may
also provide for the delimitation and allotment of local revenue from other
taxes. The Land share of revenue from the turnover tax shall accrue to the
individual Länder on a per capita basis; a federal law requiring the consent of the
Bundesrat may provide for the grant of supplementary shares not exceeding
one quarter of a Land share to Länder whose per capita income from Land taxes,
from income and corporation taxes and from taxes under Article 106b ranks
below the average of all the Länder combined; with respect to the tax on the
acquisition of real estate, the capacity to generate revenue shall be considered.
2.
Such law shall ensure a reasonable equalisation of the disparate financial
capacities of the Länder, with due regard for the financial capacities and needs
of municipalities (associations of municipalities). It shall specify the conditions
governing the claims of Länder entitled to equalisation payments and the
liabilities of Länder required to make them as well as the criteria for determining
the amounts of such payments. It may also provide for grants to be made by the
Federation to financially weak Länder from its own funds to assist them in
meeting their general financial needs (supplementary grants).