Dillon's Rule
A legal principle holding that cities have only those powers explicitly granted to them by the state legislature — the opposite of home rule.
How It Works
Named after Iowa Supreme Court Justice John Forrest Dillon (1868), Dillon's Rule restricts cities to powers that are (1) expressly granted by the state, (2) necessarily implied from those grants, or (3) essential to the city's stated purposes. Under strict Dillon's Rule, a city cannot impose a new tax, adopt a new fee, or regulate a new activity without state authorization. This limits fiscal flexibility and forces cities to lobby their state legislature for permission to address local problems.
Related Terms
- Home Rule — The authority granted by a state to its cities to govern themselves and pass local laws without needing specific state legislative approval for each action.
- City Charter — A city's foundational governing document — similar to a constitution — that establishes the form of government, powers, organizational structure, and key procedures.
About This Definition
This definition is part of the CitySpend Municipal Finance Glossary — 59 terms explaining how city governments fund and manage public services. All definitions are written in plain language for taxpayers, journalists, students, and municipal bond investors.