The local council of elders is to submit its written opinion on the issue to the central government before the latter makes a final decision. However, that opinion is not a legally binding document. A local Council of Elders may also petition the Governor to initiate the sacking of its chief executive. But again, the central government is the final authority in all removals from office. Of all the mandatory powers delineated in the Law, the adoption of a local budget appears to be the most significant.
All taxation is controlled by the central government.
Nevertheless, taxes on land and other property and 15 percent of all income and profit taxes collected within a community go directly into its budget. In addition, the Communities are allowed to earn income from their property and enterprises. This includes fees for enterprise registration, notary services, and the like. However, there is an apparent contradiction with another law that fixes the same standardized nationwide tariffs for such services. According to the United Nations Human Development Report for 1998, the local revenues of Armenian Communities make up less than 30 percent of their budgets.