What does Dillon's Rule limit for municipalities?

• A. Ability to levy taxes
• B. Powers granted by the legislature
• C. Access to state funding
• D. Independence in decision-making

Answer: (B)

Dillon's Rule is a legal doctrine that outlines the extent of the powers granted to municipal governments. It asserts that municipalities can only exercise powers explicitly granted to them by the state legislature or those that are necessarily implied by those express powers. This essentially limits a municipality's authority and creates a reliance on the state for any powers beyond those specifically given.

Under Dillon's Rule, if a municipality wants to take an action or enact a law, it must have clear legislative authorization to do so. This can mean that municipalities have limited autonomy in creating laws or regulations unless they are provided with the express permission to do so by the state, which reinforces the hierarchical relationship between state governments and local governments.

Therefore, the correct answer reflects the essence of Dillon's Rule, highlighting how it places restrictions on the powers available to municipalities, thereby directly linking those powers to what is provided by the state legislature.