Over which area do local authorities lack police power?

Local authorities lack police power over deed restrictions because these are private agreements or covenants pertaining to the use of real property, typically established by property developers or homeowners' associations. While local authorities have significant authority when it comes to property taxes, zoning regulations, and building codes, which are all forms of public governance intended to regulate land use and ensure public health and safety, deed restrictions operate outside of this public jurisdiction.

Deed restrictions are enforced among private parties and can often only be modified or terminated through mutual agreement or legal action among the affected property owners. This distinction is crucial, as local entities cannot impose or enforce these private agreements unless they have been incorporated into local laws or regulations. Thus, the correct answer highlights the limitation of local authorities' powers concerning private property agreements, distinguishing them from their broader regulatory roles in public domains.