What authority allows local governments to levy taxes without limitations?

Local governments' authority to levy taxes without limitations is primarily defined by the concept of Unlimited Taxing Power. This means that there are no restrictions on how much tax a local government can impose to fund its operations, services, and obligations. This authority is typically granted through state constitutions or legislation, empowering municipalities to generate revenue as needed to meet their financial obligations and provide essential services to their residents.

In this context, other options do not align with the characteristics of unlimited taxing authority. Limited Taxing Power suggests specific restrictions or caps on the amount of tax a government can impose, which contradicts the idea of unrestricted taxing ability. A Cap on Tax Rates indicates established limits on tax rates, again limiting the government's ability to raise funds freely. Lastly, Conditional Taxing Power implies that taxation authority could depend on meeting certain conditions or requirements, which would not grant the same freedom as unlimited power.

Thus, the distinction of Unlimited Taxing Power is crucial as it directly reflects the lack of constraints on tax levies, allowing local governments to address their funding needs without limitations.