Article 117 Political Constitution of the United Mexican States

The States may not, in any case:

I.Enter into alliance, treaty or coalition with another State nor with foreign Powers.

II.Repealed.

III.Coin money, issue paper money, stamps nor sealed paper.

IV.Tax the transit of persons or things that cross their territory.

V.Prohibit nor tax directly or indirectly the entry into their territory, nor the exit from it, of any national or foreign merchandise.

VI.Tax the circulation nor the consumption of national or foreign goods, with taxes or duties whose exemption is carried out by local customs houses, requires inspection or registration of packages or requires documentation that accompanies the merchandise.

VII.Issue nor keep in force laws or fiscal provisions that entail differences of taxes (sic DOF 05-02-1917) or requirements by reason of the origin of national or foreign merchandise, whether this difference is established with respect to the similar production of the locality, or between similar productions of different origin.

VIII.Contract directly or indirectly obligations or loans with governments of other nations, with foreign companies or private persons, or when they must be paid in foreign currency or outside the national territory.

The States and the Municipalities may not contract obligations or loans except when they are destined to productive public investments and to their refinancing or restructuring, which must be carried out under the best market conditions, including those contracted by decentralized agencies, public enterprises and trusts and, in the case of the States, additionally to grant guarantees with respect to the indebtedness of the Municipalities. The foregoing, in accordance with the bases established by the legislatures in the corresponding law, within the framework of the provisions of this Constitution, and for the concepts and up to the amounts that they approve. The executives shall inform of their exercise when rendering the public account. In no case may they destine loans to cover current expenditure.

The local legislatures, by the vote of two thirds of their members present, shall authorize the maximum amounts to, under the best market conditions, contract said loans and obligations, after analysis of their destination, capacity to pay and, where appropriate, the granting of a guarantee or the establishment of the source of payment.

Without prejudice to the foregoing, the States and Municipalities may contract obligations to cover their short-term needs, without exceeding the maximum limits and conditions established by the general law issued by the Congress of the Union. Short-term obligations shall be settled no later than three months before the end of the corresponding government term and new obligations may not be contracted during those last three months.

IX.Tax the production, the collection or the sale of leaf tobacco, in a manner different or with higher rates than those authorized by the Congress of the Union.

The Congress of the Union and the Legislatures of the federal entities shall forthwith issue laws aimed at combating alcoholism.