This article explores the role of local taxes within the jurisdiction of the local government bodies. It first highlights the significance of local taxes and their two-fold expression of territorial and material sovereignty. The authors delve into the concept of local taxes, its legal definitions, and the scope of taxes that local government units have authority over. The paper discusses the functions of local taxes. Furthermore, it emphasizes the importance of proper income division between the state and local governments to ensure effective decentralization of administration and public finances. The article explores the entities responsible for administering local taxes and their roles in establishing tax liabilities, granting reliefs and collecting revenues. It outlines the decisions made by local authorities regarding taxes, distinguishing between declaratory and constitutive decisions based on how tax liabilities are incurred. It then delves into the impact of tax relief on local government budgets, discussing the criteria used to grant such relief and how it relates to the economic circumstances of taxpayers. The text also addresses relief measures introduced during the COVID-19 pandemic and their implications for local authorities. Lastly, the paper discusses the roles of local government bodies as creditors in enforcement proceedings, particularly in cases where tax liabilities need to be enforced. It outlines the conditions under which local authorities act as enforcement bodies.