Chapter VII MUNICIPAL TAXATION

1. Imposition of Taxes

Act or any other law for the time being in force, annual letting value of any building or land, whether revenue paying or not, shall be determined as per the resolution of the Corporation adopted in this behalf on the basis of per square meter of the carpet area of a building or land, as the case may be, taking into consideration the area in which the building or land is situate, its location, situation, purpose for which it is used, its capacity for profitable user, quality of construction of the buildings and other relevant factors and subject to such rules as may be made by the State Government in this behalf. 1-a The Commissioner shall prepare the draft resolution under sub-section (1) for the next financial year and submit before the Corporation before 31 st December of each financial year . In case the Corporation fails to adopt the resolution as required by sub-section (1) by 31 st March of each financial year then the draft resolution prepared by the Commissioner shall be presented to the Mayor and the resolution as approved by the Mayor shall be deemed to be the resolution finally adopted by the Corporation.

1. (2) On the basis of the resolution adopted by the Corporation under sub-section (1), every owner of land or building shall assess the annual letting value of his land or building and deposit the amount of property tax along with a return in this behalf, in the prescribed form, on or before the date fixed by the Corporation, failing which a surcharge at the rate, as may be determined by the Corporation, shall be charged.
2. (3) The variation up to ten per cent on either side in the assessment made under sub-section (2) shall be ignored. In case where the variation is more than ten percent, the owner of land or

building, as the case may be, shall be liable to pay penalty equal to five times the difference of

self assessment made by him and the assessment made by the Corporation.

1. (4) An appeal shall lie to the Mayor-in-Council against the orders passed under sub-section (3).

(1) For the purpose of this Act, the Corporation shall, subject to any general or special order which the State Government may make in this behalf, impose in the whole or in any part of the Municipal Area, the following taxes namely.- (a) a tax payable by the owners of buildings or lands situated within the city with reference to the gross annual letting value of the buildings or lands, called the property tax, subject to the provisions of Sections 135,136 and 138. (b) a water tax, in respect of lands and building to which a water supply is furnished from or which are connected by means of pipe with municipal water works. (c) a general sanitary cess, for the construction and maintenance of public latrines and for removal and disposal of refuse and general cleanliness of the city. (d) a general lighting tax, where the lighting of public streets and places is undertaken by the corporation. (e) a general fire tax, for the conduct and management of the fire service and for the protection of life and property in the case of fire. (f) a local body tax on the entry of such goods as may be declared by the State Government by notification in the Official Gazette into the municipal area for consumption, use or sale therein at a rate not exceeding four percent of the value of goods: The Madhya Pradesh* Municipalities Act, 1961 *छ-ग- राजपत्र दिनााँक 24-08-2001 के अदिसूचना क्रमाांक 2458/2001 दिनााँक 30-06--2001 के अनुसार "म-प्र." के स्थान पर "छ.ग."। Provided that no local body tax shall be levied on the goods- (i) brought by a person into the municipal area for his personal use or consumption; or (ii) brought by a registered dealer within the municipal area and transmitted within 15 days thereof- (a) to a registered dealer in any other local body; or (b) in the course of export out of the territory of India; or (c) in the course of inter state trade outside the State. (iii) specified in the Schedule to the Madhya Pradesh* Sthaniya Kshetron Me Mal Ke Pravesh Par Kar Adhiniyam, 1976 (No. 52 of 1976). (2) Notwithstanding anything contained in clause (f) of sub-section (1) if in the opinion of the State Government it is expedient to do so, it may delegate the power to the Corporation to declare the goods on which local body tax shall be levied and the rates thereof. (3) The mode of assessment and collection of the local body tax shall be such as may be prescribed. (4) The water tax under the clause (b) of sub-section (1) shall be charged- (a) on buildings and lands which are exempted from property tax, at a rate as shall be determined by the Corporation.(omitted) (b) on buildings and lands which are not exempted from property tax, at a rate as determined in clause (a) plus such percentage of the property tax, as shall be determined by the Corporation. Provided that the water tax under clause (b) of sub-section (1) shall not be levied on building and land owned by freedom fighters during their life time, if they are exempted from Income Tax and the water connection is for domestic purpose and which does not exceed half inch connection. (5) The taxes under clause ©, (d), and (e) of sub-section (1) shall be levied at a consolidated rate as under:- (a) on buildings and lands which are exempted from property tax at a rate as determined by the corporation (omitted) (b) on buildings and lands which are not exempted from property tax at a rate prescribed under clause (a) plus such percentage of the property tax, as may be determined by the Corporation, subject to the conditions that such percentage shall not exceed ten percent of the amount of property tax. (6) In addition to the taxes specified in sub-section (1), the Corporation may, for the purpose of this Act, subject to any general or special order which the State Government may make in this behalf, impose any of the following taxes, namely:- (a) a latrine or conservancy tax payable by the occupier or owner upon private latrines, privies or cesspools or open premised or compounds cleansed by Corporation agency; (b) a drainage tax, where a system of drainage has been introduced; (c) a tax on persons exercising any profession or art or carrying on any trade or calling within the city; (d) omitted (e) omitted. (f) fees on the registration of cattle sold within the city; (g) market dues on persons exposing goods for sale in any market or in any place belonging to or under the control of the Government or of the Corporation; (h) a betterment tax on properties whose value may have improved as a result of town planning scheme under taken by the Corporation; (i) a tax on pilgrims resorting periodically to a shrine within the limits of the Corporation; The Madhya Pradesh* Municipalities Act, 1961 *छ-ग- राजपत्र दिनााँक 24-08-2001 के अदिसूचना क्रमाांक 2458/2001 दिनााँक 30-06--2001 के अनुसार "म-प्र." के स्थान पर "छ.ग."। (j) a tax on persons occupying houses, buildings or lands within the limits of the Corporation according to their circumstances and property; (k) a toll on new bridge constructed by the Corporation; (l) a tax on advertisement other than advertisements published in news papers. (m) a tax on theaters, theatrical performances and other shows for public amusement; (n) a terminal tax on goods or animals exported from the limits of the Corporation; and (o) any other tax which the State Government has power to impose under the Constitution of India, with the prior approval of the State Government. (7) Subject to the provisions of Article 277 of the Constitution of India, any tax which immediately before the commencement of the Madhya Pradesh* Municipal Corporation Law (Extension) Act, 1960 (No. 13 of 1960) was being lawfully levied by the Corporation, may, notwithstanding that such tax is not specified in sub-section (1) or (6), continue to be levied by the Corporation. (8) The imposition of any tax under this Section shall be subject to the provisions of this Act and of any other enactment for the time being in force. (9) omitted (10) Notwithstanding anything contained in this chapter, the Corporation may impose upon properties specified in clause (a) of Section 136, all or any of the taxes specified in clause (b), (c) and (d) of sub-section (1) and clause (b) of sub-section (6) at a rate, in excess of the rate which such tax is imposed, on other properties under the respective clauses, as the State Government may, by notification, specify. 127.-A Imposition of Property Tax.- (1) Notwithstanding anything contained in this Act, the tax under clause (i) of sub-section (1) of section 127 shall be charged, levied and paid, at the rate not less than six percent and not more than ten percent of the annual letting value, as may be determined by the Corporation for each financial year. Provided that if the Corporation fails to determine the rate of the property tax by 31 st March the rate as prevailing during the previous financial year shall be deemed to be the rate for current financial year. (2) The property tax levied under section 135 shall not be leviable in respect of the following properties, namely:- (a) buildings and lands owned by or vesting in- (i) the Union Government; (ii) the State Government; (iii) the Corporation; (b) buildings and lands the annual value of which does not exceed six thousand rupees in case of Municipal area having population of one lac or above and four thousand eight hundred rupees in case of Municipal area having population below on lac. Provided that if any such building or land is in the ownership of a person who owns any other building or land in then same city, the annual value of such building or land shall for the purposes of this clause, be deemed to be the aggregate annual value of all buildings or lands, owned by him in the city; (c) buildings and lands or portions there of used exclusively for educational purposes including schools, boarding houses, hostels and libraries if such buildings and lands or portions thereof are either owned by the educational institutions concerned or have been placed at the disposal of such educational institutions without payment of any rent; The Madhya Pradesh* Municipalities Act, 1961 *छ-ग- राजपत्र दिनााँक 24-08-2001 के अदिसूचना क्रमाांक 2458/2001 दिनााँक 30-06--2001 के अनुसार "म-प्र." के स्थान पर "छ.ग."। (d) public parks and play grounds which are open to the public and building and land attached thereto if the rent derived there from is exclusively spent for the administration of parks and playgrounds to which they are attached; (e) buildings and land or portions thereof used exclusively for public worship or public charity such as mosques, temples, churches, dharmashalas, gurudwaras, hospitals, dispensaries, orphanages, alms houses, drinking water fountains, infirmaries for the treatment and care of animals and public burial grounds, or other places for the disposal of the dead: Provided that the following buildings and lands or portions thereof shall not be deemed to be used exclusively for public worship or for public charity within the meaning of this Section, namely:- (i) building in or lands on which any trade or business is carried on unless the rent derived from such buildings or lands is applied exclusively to religious purposes or to public charitable institutions aforesaid; (ii) buildings or lands in respect of which rent is derived and such rent is not applied exclusively to religious purposes or public charitable institutions aforesaid. (f) buildings or lands owned by widows or minors or persons subject to physical disability or mental infirmity owing to which they are incapable of earning their livelihood, where the main source of maintenance of such widows or minors or persons is the rent derived form such buildings and lands: Provided that such exemption shall, relate only to the first twelve thousand rupees or the annual value of such buildings and lands. (g) buildings and lands owned by freedom fighters, retired members of Defense Services and their widows during their life time if they are exempted from income tax. (h) building and lands owned by blind persons, abandoned women and mentally incapacitated persons if sufficient proof is produced in this behalf and if the main source of their maintenance is he rent derived from such buildings and lands. (i) buildings and lands in occupation of owner or his residence shall be exempted from property tax to the extent of fifty per cent. (j) the electric pole erected by the Madhya Pradesh* Electric Board. (k) property owned by such political party in the State which has been recognized by the Election Commission of India. 128.

1. (a) a tax payable by the owners of buildings or lands situated within the city with reference to the gross annual letting value of the buildings or lands, called the property tax, subject to the provisions of Sections 135,136 and 138.
2. (b) a water tax, in respect of lands and building to which a water supply is furnished from or which are connected by means of pipe with municipal water works.
3. (c) a general sanitary cess, for the construction and maintenance of public latrines and for removal and disposal of refuse and general cleanliness of the city.
4. (d) a general lighting tax, where the lighting of public streets and places is undertaken by the corporation.
5. (e) a general fire tax, for the conduct and management of the fire service and for the protection of life and property in the case of fire.
6. (f) a local body tax on the entry of such goods as may be declared by the State Government by notification in the Official Gazette into the municipal area for consumption, use or sale therein at a rate not exceeding four percent of the value of goods:

The Madhya Pradesh* Municipalities Act, 1961

*छ-ग- राजपत्र दिनााँक 24-08-2001 के अदिसूचना क्रमाांक 2458/2001 दिनााँक 30-06--2001 के अनुसार "म-प्र." के स्थान पर "छ.ग."।

Provided that no local body tax shall be levied on the goods-

1. (i) brought by a person into the municipal area for his personal use or consumption; or
2. (ii) brought by a registered dealer within the municipal area and transmitted within 15 days thereof-

1. (a) to a registered dealer in any other local body; or
2. (b) in the course of export out of the territory of India; or
3. (c) in the course of inter state trade outside the State.
   • (iii) specified in the Schedule to the Madhya Pradesh* Sthaniya Kshetron Me Mal Ke Pravesh Par Kar Adhiniyam, 1976 (No. 52 of 1976).

1. (2) Notwithstanding anything contained in clause (f) of sub-section (1) if in the opinion of the State Government it is expedient to do so, it may delegate the power to the Corporation to declare the goods on which local body tax shall be levied and the rates thereof.
2. (3) The mode of assessment and collection of the local body tax shall be such as may be prescribed.
3. (4) The water tax under the clause (b) of sub-section (1) shall be charged-
   • (a) on buildings and lands which are exempted from property tax, at a rate as shall be determined by the Corporation.(omitted)
   • (b) on buildings and lands which are not exempted from property tax, at a rate as determined in clause (a) plus such percentage of the property tax, as shall be determined by the Corporation.

Provided that the water tax under clause (b) of sub-section (1) shall not be levied on building

and land owned by freedom fighters during their life time, if they are exempted from Income Tax and the water connection is for domestic purpose and which does not exceed half inch connection.

1. (5) The taxes under clause ©, (d), and (e) of sub-section (1) shall be levied at a consolidated rate as under:-
   • (a) on buildings and lands which are exempted from property tax at a rate as determined by the corporation (omitted)
   • (b) on buildings and lands which are not exempted from property tax at a rate prescribed under clause (a) plus such percentage of the property tax, as may be determined by the Corporation, subject to the conditions that such percentage shall not exceed ten percent of the amount of property tax.
2. (6) In addition to the taxes specified in sub-section (1), the Corporation may, for the purpose of this Act, subject to any general or special order which the State Government may make in this behalf, impose any of the following taxes, namely:-
   • (a) a latrine or conservancy tax payable by the occupier or owner upon private latrines, privies or cesspools or open premised or compounds cleansed by Corporation agency;
   • (b) a drainage tax, where a system of drainage has been introduced;
   • (c) a tax on persons exercising any profession or art or carrying on any trade or calling within the city;
   • (d) omitted
   • (e) omitted.
   • (f) fees on the registration of cattle sold within the city;
   • (g) market dues on persons exposing goods for sale in any market or in any place belonging to or under the control of the Government or of the Corporation;
   • (h) a betterment tax on properties whose value may have improved as a result of town planning scheme under taken by the Corporation;
     • (i) a tax on pilgrims resorting periodically to a shrine within the limits of the Corporation;

The Madhya Pradesh* Municipalities Act, 1961

*छ-ग- राजपत्र दिनााँक 24-08-2001 के अदिसूचना क्रमाांक 2458/2001 दिनााँक 30-06--2001 के अनुसार "म-प्र." के स्थान पर "छ.ग."।

1. (j) a tax on persons occupying houses, buildings or lands within the limits of the Corporation according to their circumstances and property;
2. (k) a toll on new bridge constructed by the Corporation;
3. (l) a tax on advertisement other than advertisements published in news papers.
4. (m) a tax on theaters, theatrical performances and other shows for public amusement;
5. (n) a terminal tax on goods or animals exported from the limits of the Corporation; and
6. (o) any other tax which the State Government has power to impose under the Constitution of India, with the prior approval of the State Government.

1. (7) Subject to the provisions of Article 277 of the Constitution of India, any tax which

immediately before the commencement of the Madhya Pradesh* Municipal Corporation Law

(Extension) Act, 1960 (No. 13 of 1960) was being lawfully levied by the Corporation, may, notwithstanding that such tax is not specified in sub-section (1) or (6), continue to be levied by the Corporation.

1. (8) The imposition of any tax under this Section shall be subject to the provisions of this Act and of any other enactment for the time being in force.
2. (9) omitted
3. (10) Notwithstanding anything contained in this chapter, the Corporation may impose upon properties specified in clause (a) of Section 136, all or any of the taxes specified in clause (b), (c) and (d) of sub-section (1) and clause (b) of sub-section (6) at a rate, in excess of the rate which such tax is imposed, on other properties under the respective clauses, as the State Government may, by notification, specify. 127.-A Imposition of Property Tax.-
4. (1) Notwithstanding anything contained in this Act, the tax under clause (i) of sub-section (1) of

section 127 shall be charged, levied and paid, at the rate not less than six percent and not more

than ten percent of the annual letting value, as may be determined by the Corporation for each financial year. Provided that if the Corporation fails to determine the rate of the property tax by 31 st March the rate as prevailing during the previous financial year shall be deemed to be the rate for current financial year.

1. (2) The property tax levied under section 135 shall not be leviable in respect of the following properties, namely:-
   • (a) buildings and lands owned by or vesting in-
     • (i) the Union Government;
     • (ii) the State Government;
     • (iii) the Corporation;
   • (b) buildings and lands the annual value of which does not exceed six thousand rupees in case of Municipal area having population of one lac or above and four thousand eight hundred rupees in case of Municipal area having population below on lac. Provided that if any such building or land is in the ownership of a person who owns any other building or land in then same city, the annual value of such building or land shall for the purposes of this clause, be deemed to be the aggregate annual value of all buildings or lands, owned by him in the city;
   • (c) buildings and lands or portions there of used exclusively for educational purposes including schools, boarding houses, hostels and libraries if such buildings and lands or portions thereof are either owned by the educational institutions concerned or have been placed at the disposal of such educational institutions without payment of any rent;

The Madhya Pradesh* Municipalities Act, 1961

*छ-ग- राजपत्र दिनााँक 24-08-2001 के अदिसूचना क्रमाांक 2458/2001 दिनााँक 30-06--2001 के अनुसार "म-प्र." के स्थान पर "छ.ग."।

1. (d) public parks and play grounds which are open to the public and building and land attached thereto if the rent derived there from is exclusively spent for the administration of parks and playgrounds to which they are attached;
2. (e) buildings and land or portions thereof used exclusively for public worship or public charity such as mosques, temples, churches, dharmashalas, gurudwaras, hospitals, dispensaries, orphanages, alms houses, drinking water fountains, infirmaries for the treatment and care of animals and public burial grounds, or other places for the disposal of the dead: Provided that the following buildings and lands or portions thereof shall not be deemed to be used exclusively for public worship or for public charity within the meaning of this Section, namely:-
   • (i) building in or lands on which any trade or business is carried on unless the rent derived from such buildings or lands is applied exclusively to religious purposes or to public charitable institutions aforesaid;
   • (ii) buildings or lands in respect of which rent is derived and such rent is not applied exclusively to religious purposes or public charitable institutions aforesaid.
3. (f) buildings or lands owned by widows or minors or persons subject to physical disability or mental infirmity owing to which they are incapable of earning their livelihood, where the main source of maintenance of such widows or minors or persons is the rent derived form such buildings and lands: Provided that such exemption shall, relate only to the first twelve thousand rupees or the annual value of such buildings and lands.
4. (g) buildings and lands owned by freedom fighters, retired members of Defense Services and their widows during their life time if they are exempted from income tax.
5. (h) building and lands owned by blind persons, abandoned women and mentally incapacitated persons if sufficient proof is produced in this behalf and if the main source of their maintenance is he rent derived from such buildings and lands.
   • (i) buildings and lands in occupation of owner or his residence shall be exempted from property tax to the extent of fifty per cent.
6. (j) the electric pole erected by the Madhya Pradesh* Electric Board.
7. (k) property owned by such political party in the State which has been recognized by the Election Commission of India. 128.

Imposition of Taxes and Fees.-

1. (1) The Council may, by a resolution, at the time to final adoption of the budget estimates for the next financial year, subject to the provisions of this Act and subject to such limitations and conditions, as may be prescribed by the State Government in this behalf-
   • (a) impose any of the taxes or fees specified in this Act; or
   • (b) increase the rates of taxes or fees already imposed.
2. (2) The resolution as referred to in sub-section (1) shall contain-
   • (a) in case of imposition of any tax or fees, the provisions under which such tax or fee is being imposed, class of persons or description of property to be taxed, the amount or rate of tax or fee being imposed, system of assessment and collection to be adopted and the date from which imposition of such tax or fee shall take effect;

The Madhya Pradesh* Municipalities Act, 1961

*छ-ग- राजपत्र दिनााँक 24-08-2001 के अदिसूचना क्रमाांक 2458/2001 दिनााँक 30-06--2001 के अनुसार "म-प्र." के स्थान पर "छ.ग."।

1. (b) in case of increase of rate of any tax or fee, the prevailing rate of such tax or fee, the proposed increased rate of such tax or fee and the date from which increase of rate of such tax or fees shall take effect.

1. (3) The resolution, as passed, shall be conclusive evidence of the imposition of a new tax or fee; or increase of rate of any tax or fee, as the case may be: Provided that if the Corporation decides to have supplementary taxation during the financial year; it may do so from such date as the Corporation may resolve, subject to the provisions of this Act and subject to such limitation and conditions as may be prescribed by the State Government in this behalf.
2. (4) Nothing contained in this section shall apply to tax mentioned in clause (i) of sub-section (1) of Section 127, which shall be charged and levied in accordance with Section 127-A.

The Council may, with the prior approval of the State Government, abolish, suspend or reduce the rate of any tax.

If, on a complaint made to it or otherwise, it appears to the State Government that any tax levied by a Council is unfair in its incidence or that such levy or any part thereof is obnoxious to the interest of the inhabitants of the Municipality, it may, by an order, require the Council to remove the objections to any such tax within such time as may be specified therein, and on the failure of Council to comply with the order within the time so specified to the satisfaction of the State Government, the State

the Municipality, it may, by an order, require the Council to remove the objections to any such

tax within such time as may be specified therein, and on the failure of Council to comply with the order within the time so specified to the satisfaction of the State Government, the State

Power of State Government to grant exemption from taxes.- The State Government may, on it own motion or otherwise, after giving the Council an opportunity of expressing its views in the matter, by order, exempt from payment of any tax in whole or in part any person or class of persons or any property or description of properties for the purpose of granting protection to any industry or for any other purpose in public interest subject to such conditions as may be specified in such order.

132-A. Creation of Infrastructure Development Fund.-(1) Notwithstanding anything contained in this Act or any other Act for the time being in force, the State Government may create an Infrastructure Development Fund with a view of assist the Municipalities in developing the infrastructure.

1. (2) The sources of the infrastructure fund and the procedure and manner in which the amount from the fund shall be provided in Municipalities shall be such as may be prescribed.

1. (1) The State Government may make rules under this Act regulating the refund of taxes and such rules may impose limitation on such refunds.
2. (2) No refund of any tax shall be claimable by any person otherwise than that in accordance with the provisions of this Act, and the rules and bye-laws made thereunder.

The Madhya Pradesh* Municipalities Act, 1961

*छ-ग- राजपत्र दिनााँक 24-08-2001 के अदिसूचना क्रमाांक 2458/2001 दिनााँक 30-06--2001 के अनुसार "म-प्र." के स्थान पर "छ.ग."।

2. Assessment and its liability

(1) When a tax on buildings or lands or bioth is imposed, the Chief Municipal Officer shall cause an assessment list of all buildings or lands and buildings in the Municipality to be prepared containing- (a) the name of the street or division in which the property is situated; (b) description of the property sufficient for identification; (c) the name of the owner or occupier; if known; (d) the valuation based on capital or annual letting value, as the case may be, on which the property is assessed; (e) the rate of tax applicable; (f) the amount of tax assessed thereon; (g) If the property is exempted from tax, a note to that effect. (2) In assessing a tax on buildings or lands where the valuation as determined under clause (d) of sub-section (1) is the annual letting value, a sum equal to ten per cent of the said valuation shall be deducted therefrom in lieu of an allowance for repairs or any other account whatsoever. (3) For the purpose of preparing such assessment list the Chief Municipal Officer or any person acting under his authority may inspect any building or land in the Municipality and on the requisition of the Chief Municipal Officer the owner or occupier of any such building or land shall, within such reasonable period as shall be specified in the requisition, be bound to furnish a true return to the best of his knowledge or belief of the name and place of abode of the owner or occupier or of both and the annual letting value and his estimate of the value of such building or land, duly signed by him.

1. (a) the name of the street or division in which the property is situated;
2. (b) description of the property sufficient for identification;
3. (c) the name of the owner or occupier; if known;
4. (d) the valuation based on capital or annual letting value, as the case may be, on which the property is assessed;
5. (e) the rate of tax applicable;
6. (f) the amount of tax assessed thereon;
7. (g) If the property is exempted from tax, a note to that effect.

1. (2) In assessing a tax on buildings or lands where the valuation as determined under clause (d) of sub-section (1) is the annual letting value, a sum equal to ten per cent of the said valuation shall be deducted therefrom in lieu of an allowance for repairs or any other account whatsoever.
2. (3) For the purpose of preparing such assessment list the Chief Municipal Officer or any person acting under his authority may inspect any building or land in the Municipality and on the requisition of the Chief Municipal Officer the owner or occupier of any such building or land shall, within such reasonable period as shall be specified in the requisition, be bound to furnish a true return to the best of his knowledge or belief of the name and place of abode of the owner or occupier or of both and the annual letting value and his estimate of the value of such building or land, duly signed by him.

(1) When the name of the person primarily liable for the payment of the tax on buildings or lands or both in respect of any premises cannot be ascertained, it shall be sufficient to designate him in the Assessment list as “the holder” of such premised, without further description and to serve upon the said person any notice which it may be necessary to serve under this Act.

1. (2) If, any such case, any person in occupation of the premises fails to furnish such information as may be requisite for determining as to who is primarily liable as aforesaid, such person shall, until such information is made available to the Chief Municipal Officer be himself liable for all taxes on buildings or lands or both leviable on the premises of which he is in occupation.

When the assessment list has been completed, the Chief Municipal Officer shall give public notice thereof, and of the place where the list or a copy thereof may be inspected; and every person claiming to be either owner or occupier of property included in the list, and any agent of such person duly authorized by him in writing may inspect that list and take extracts there from free of any charge.

(1) The Chief Municipal Officer shall, at the time of the publication of the assessment list under Section 136, give public notice of a date not earlier than thirty days from the publication of such notice by which objections to the valuation or assessment in such lists may be delivered at his office. (2) The Chief Municipal Officer shall, in all cases in which the property is for the first time assessed or the assessment is increased as a result of increase in the valuation of the property give special notice there of to the owner or occupier of the property, if known and if the owner or The Madhya Pradesh* Municipalities Act, 1961 *छ-ग- राजपत्र दिनााँक 24-08-2001 के अदिसूचना क्रमाांक 2458/2001 दिनााँक 30-06--2001 के अनुसार "म-प्र." के स्थान पर "छ.ग."। occupier of property is not known, shall cause such notice to be affixed in a conspicuous place on the property. (3) Any person , dissatisfied with a valuation or assessment made under this Chapter, may file an objection at the Municipal office stating the grounds to such valuation or assessment on or before then last day fixed in this behalf in public notice referred to in sub-section (1) or (2).

1. (2) The Chief Municipal Officer shall, in all cases in which the property is for the first time assessed or the assessment is increased as a result of increase in the valuation of the property give special notice there of to the owner or occupier of the property, if known and if the owner or

The Madhya Pradesh* Municipalities Act, 1961

*छ-ग- राजपत्र दिनााँक 24-08-2001 के अदिसूचना क्रमाांक 2458/2001 दिनााँक 30-06--2001 के अनुसार "म-प्र." के स्थान पर "छ.ग."।

occupier of property is not known, shall cause such notice to be affixed in a conspicuous place

on the property.

1. (3) Any person , dissatisfied with a valuation or assessment made under this Chapter, may file an objection at the Municipal office stating the grounds to such valuation or assessment on or before then last day fixed in this behalf in public notice referred to in sub-section (1) or (2).

(1) All such objections shall be entered in a register to be maintained for the purpose and on receipt of any objection the Chief Municipal Officer shall give a notice in writing to the objector of the time and place at which his objection will be investigated. (2) At the time and place so fixed, the Municipal Officer shall hear the objection, in the presence of the objector or his authorized agent if he appears , or may for reasonable cause, adjourn the investigation. (3) When the objection has been determined, the order passed on such objection shall be recorded in the said register and, if necessary, an amendment made in the assessment list in accordance with the result of the objection. (4) If the Chief Municipal Officer fails to determine the objection within a period of one year from the date of its filing, it shall be deemed that the objection so filed has been disallowed and the objector may prefer an appeal under section 139 of the Act.

Municipal Officer shall give a notice in writing to the objector of the time and place at which his objection will be investigated.

1. (2) At the time and place so fixed, the Municipal Officer shall hear the objection, in the presence of the objector or his authorized agent if he appears , or may for reasonable cause, adjourn the investigation.
2. (3) When the objection has been determined, the order passed on such objection shall be recorded in the said register and, if necessary, an amendment made in the assessment list in accordance with the result of the objection.
3. (4) If the Chief Municipal Officer fails to determine the objection within a period of one year from the date of its filing, it shall be deemed that the objection so filed has been disallowed and the objector may prefer an appeal under section 139 of the Act.

(1) If any dispute arises as to the liability of any land or building to assessment or as to the basis or principle of assessment or as to the amount of tax assessed an appeal shall lie from the decision n of the Council to the Civil Judge Class I having jurisdiction over the Municipal area and if there be no Civil Judge Class I at the headquarter of the Municipality to the Civil Judge Class II having jurisdiction at such headquarter and if there be no Civil Judge Class II at such headquarter to the Civil Judge Class II having jurisdiction, and in case more than one such Civil Judges at the headquarter or having jurisdiction, as the case may be, to such of them as the District Judge may specify. (2) Such appeal shall be presented to the Civil Judge within thirty days from the date of the order passed under Section 138 and shall be accompanied by an extract from the register of objections containing the order objected to. (3) The provisions of Part-II and III of the Indian Limitation Act, 1908 (IX of 1908), relating to appeals shall apply to every appeal preferred under this section. (4) No appeal shall be admitted under this section unless an objection has been preferred under Section 137. (5) The decision of the Civil Judge in an appeal made under sub-section (1) shall, subject to the decision in revision by the Court to which appeals against the decisions of such Civil Judge ordinarily lie, be final and effect shall be given by Council to such decision. (6) The pendency of an appeal under this section shall not operate to delay or prevent the levy of any tax or installment thereof payable in respect of any building or land according to the order of assessment under appeal but, if by the final decision in the appeal it is determined that such tax or installment ought not to have been levied in whole or in part, the Chief Executive Officer shall refund to the person whom the same has been levied, the amount of such tax or installment, or the excess thereof over the amount properly leviable in accordance with such final decision, as the case may be. The Madhya Pradesh* Municipalities Act, 1961 *छ-ग- राजपत्र दिनााँक 24-08-2001 के अदिसूचना क्रमाांक 2458/2001 दिनााँक 30-06--2001 के अनुसार "म-प्र." के स्थान पर "छ.ग."। Explanation.- A reference to a Council in the Section shall be read and construed as a reference to the Chief Municipal Officer.

1. (2) Such appeal shall be presented to the Civil Judge within thirty days from the date of the order passed under Section 138 and shall be accompanied by an extract from the register of objections containing the order objected to.
2. (3) The provisions of Part-II and III of the Indian Limitation Act, 1908 (IX of 1908), relating to appeals shall apply to every appeal preferred under this section.
3. (4) No appeal shall be admitted under this section unless an objection has been preferred under Section 137.
4. (5) The decision of the Civil Judge in an appeal made under sub-section (1) shall, subject to the decision in revision by the Court to which appeals against the decisions of such Civil Judge ordinarily lie, be final and effect shall be given by Council to such decision.
5. (6) The pendency of an appeal under this section shall not operate to delay or prevent the levy of any tax or installment thereof payable in respect of any building or land according to the order of assessment under appeal but, if by the final decision in the appeal it is determined that such tax or installment ought not to have been levied in whole or in part, the Chief Executive Officer shall refund to the person whom the same has been levied, the amount of such tax or installment, or the excess thereof over the amount properly leviable in accordance with such final decision, as the case may be.

The Madhya Pradesh* Municipalities Act, 1961

*छ-ग- राजपत्र दिनााँक 24-08-2001 के अदिसूचना क्रमाांक 2458/2001 दिनााँक 30-06--2001 के अनुसार "म-प्र." के स्थान पर "छ.ग."।

Explanation.- A reference to a Council in the Section shall be read and construed as a reference to the Chief Municipal Officer.

objections made under Section 137 have been disposed of and all amendments required by Section 138 have been made in the assessment list, it shall be authenticated by the Chief Municipal Officer who shall certify under his signature that except in the cases in which amendments have been made as shown therein, no valid objection has been made to the valuation and assessment as entered in the said list: Provided that where the function of the Council under sub-section (2) of Section 138 is under the provisions of this Act performed by the President-in-Council or any other Committee, such list shall, in addition, be authenticated and certified as aforesaid by not less than two members of such Committee.

1. (2) The Council may, with the previous sanction of the State Government, appoint any Government officer to perform the functions of the Council under this Act and where any officer is so appointed, the list shall be authenticated and certified as aforesaid by such officer. Explanation: For the purpose of this section “Government officer” shall include retired Government officer.
2. (3) The list so authenticated shall be kept in the Municipal Office, and shall be open to inspection during office hours to all owners and occupiers of property entered therein or to the agents of such persons and the notice that it is so open shall be forthwith published.
3. (4) Subject to such alterations as may be made therein under the provisions of Section 138 and to the result of any appeal under Section 139, the entries in the assessment list so authenticated and deposited and the entries, if any, inserted in the said list under the provisions of Section 141 shall be accepted as conclusive evidence-
   • (i) for the purposes of all Municipal taxes of valuation, or annual letting value on the basis prescribed in the rule regulating the tax, of buildings, lands and both buildings and lands to which such entries respectively refer; and
   • (ii) for the purposes of the tax for which such assessment list has been prepared, of the amount of the tax leviable on such buildings or lands or both buildings and lands in any official year in which such list is in force.

(1) The Council may, at any time, amend the assessment list by the inclusion, omission or substitution of any matter: Provided that whenever it propose to make any amendment in respect of any matter other than the correction of an arithmetical errors, it shall, before making the amendment, send notice there of persons interested and shall allow thirty days to elapse for the making of any objection to the proposed amendment: Provided further that nothing in this section shall empower the Council to vary the valuation of any premises determined on appeal. (2) If any amendment be made in respect of any matter other than the correction of an arithmetical error, any person on whom a notice is served may object by a written application addressed to the Chief Municipal Officer and delivered at the Council office before the date fixed in the said notice; and the provisions of Sections 138 and 140 shall, with all necessary modifications, apply to such objection. (3) When the erection of a new building is completed after the completion of the assessment list the Council may add the particulars of the Building to then list and in such case the provisions of The Madhya Pradesh* Municipalities Act, 1961 *छ-ग- राजपत्र दिनााँक 24-08-2001 के अदिसूचना क्रमाांक 2458/2001 दिनााँक 30-06--2001 के अनुसार "म-प्र." के स्थान पर "छ.ग."। Sections 135, 136 and 137 shall apply except that no public notice shall be required. In such a case the assessment shall take effect from the beginning of the quarter following then date on which the building is added to the assessment list or from the date when it is occupied or let, if that is earlier.

1. (2) If any amendment be made in respect of any matter other than the correction of an arithmetical error, any person on whom a notice is served may object by a written application addressed to the Chief Municipal Officer and delivered at the Council office before the date fixed in the said notice; and the provisions of Sections 138 and 140 shall, with all necessary modifications, apply to such objection.
2. (3) When the erection of a new building is completed after the completion of the assessment list the Council may add the particulars of the Building to then list and in such case the provisions of

The Madhya Pradesh* Municipalities Act, 1961

*छ-ग- राजपत्र दिनााँक 24-08-2001 के अदिसूचना क्रमाांक 2458/2001 दिनााँक 30-06--2001 के अनुसार "म-प्र." के स्थान पर "छ.ग."।

Sections 135, 136 and 137 shall apply except that no public notice shall be required. In such a case the assessment shall take effect from the beginning of the quarter following then date on which the building is added to the assessment list or from the date when it is occupied or let, if that is earlier.

Subject to the provisions of Section 141 and decision in appeal, if any preferred under Section 139 every entry in the assessment list authenticated under Section 140 shall be final.

(1) When an owner has furnished information or a written return as provided by sub-section (3) of Section 134,he shall give notice in writing the Chief Municipal Officer of any subsequent increase in the rent.

1. (2) If an owner of any land or building or any portion thereof has, after he has been assessed for same, made an increase in the rent thereof, he shall give notice in writing to the Chief Municipal Officer of such increase.
2. (3) The Council shall, on receipt of such notice as to increase of rent, amend the assessment list by alerting the assessment of such land or building or portion thereof as provided by Section 141:

Notice to be given of demolition of building.-(1) When any building or any portion of a building, which is liable to the payment of property tax is demolished or removed, otherwise than by order of the Council or has fallen down or has been destroyed by fire or any other cause the person primarily liable for the payment of the said tax shall give notice thereof, in writing, to the Chief Municipal Officer.

1. (2) Until such notice is given the person aforesaid shall continue to be liable to pay the property tax as if same of portion thereof, has not been demolished or removed or has not fallen down or been destroyed by fire or otherwise.

Whoever fails to give notice of an increase of rent required by sub-sections (1) and (2) of Section143 or gives notice of an increase of rent which in substance is untrue, he shall be punishable with fine which may extend to two hundred rupees.

which in substance is untrue, he shall be punishable with fine which may extend to two hundred rupees.

(1) The Council may, instead of making a new assessment every year, adopt the existing assessment, with such alteration as it thinks fit, as the assessments for each new year, giving to persons affected by such alterations the same notice of the altered valuation and assessment as would have been required if a new assessment had been prepared.

1. (2) The Council shall arrange for a survey for the purposes of assessments of each part of the Municipality at least once in four years.
2. (3) The provisions of Sections 134 to 140 shall, so far as may be, apply for the purposes of this section.

The property tax leviable upon any land or building shall be paid by the owner thereof.

The Madhya Pradesh* Municipalities Act, 1961

*छ-ग- राजपत्र दिनााँक 24-08-2001 के अदिसूचना क्रमाांक 2458/2001 दिनााँक 30-06--2001 के अनुसार "म-प्र." के स्थान पर "छ.ग."।

Explanation- For the purpose of this section a tenant of land or building or both, under a lease for any agreed period with a covenant for its renewal thereafter, shall be deemed to be owner thereof.

Any tax or sum leviable under this Act from the owner may be recovered from the occupier, and in such case such occupier shall, in the absence of any contract to the contrary, be entitled to recover the same from the owner and may deduct the same from any rent then or thereafter due by him to the owner: Provided that the occupier shall not be liable for any such tax or sum due for a period prior to the date of commencement of his occupy.

149.

Notice of transfer of titles, when to be given.-(1) Whenever the title in any land or building or in any part or share of any land or building is transferred, the transferor and the transferee shall, within three months of the registration of the deed of transfer, or if it be not registered, within three months of the execution of the instrument of transfer, or, if no such instrument be executed within ninety days after the transfer is effected, give notice in writing of such transfer to the Council.

1. (2) Every person liable for the payment of a tax on any property, who transfers his title to or over such property without giving notice of such transfer to the Council as aforesaid, shall, in addition to any other liability with he incurs through such neglect, continue to be liable for the payment of all such taxes payable in respect of the said property until he gives such notice or until the transfer is recorded in the Council’s books: Provided that nothing in this section shall affect the liability of the transferee for payment of the said tax or the prior claim of the Council on the property for the recovery thereof: Provided further that the Council shall not recover more than the amount of the tax due in respect of the said property.
2. (3) In the event of the death of the person in whom title to any land or building or in any part or share of any land or building vests, the person who as heir or otherwise takes the title of the deceased by descent or devise shall, within three months from the death of the deceased, give notice of this title to the Council in writing.
3. (4) Nothing in this section shall be deemed to affect the liability of the heir or devises for the said taxes or to affect the prior claim of the Council for the recovery of the taxes due thereupon.

(1) The notice to be given under Section 150 shall be in such forms as may be prescribed by rules. (2) On receipt of any such notice the Council may, if it thinks necessary, require the production of the instrument of transfer, if any, or a copy thereof. 152 to 155.

1. (2) On receipt of any such notice the Council may, if it thinks necessary, require the production of the instrument of transfer, if any, or a copy thereof. 152 to 155.

Tables for tolls to be shown on demand-A Coouncil imposing any toll under this Act shall cause to be kept, at each place where such toll is to be collected, a table in Hindi Language, written in Devnagri Script , showing the amount leviable in all cases provided for in the rules, including the terms, if any, on which the liability to pay such tolls may be compounded by

The Madhya Pradesh* Municipalities Act, 1961

*छ-ग- राजपत्र दिनााँक 24-08-2001 के अदिसूचना क्रमाांक 2458/2001 दिनााँक 30-06--2001 के अनुसार "म-प्र." के स्थान पर "छ.ग."।

periodical payment, and it shall be the duty of every person authorized to demand payment of a toll to show such table on the request of any person to whom such demand is made.

(1) If any toll leviable under this Act is not paid on demand, the person appointed to collect it may seize and detain such portion of the load of any animal or vehicle on which the toll is chargeable, as will, in his opinion suffice to defray the amount due in respect of suchn toll and in the absence of any load on an animal or vehicle on which the toll is chargeable, or in the event of its valuable being insufficient to defray the amount due, he may seize and detain the animal or vehicle.

1. (2) The person on seizing or detaining the goods or animal or vehicle, as the case may be, shall, on such seizure or detention give a list of the property seized or detained to the person in charge of such property at the time of its seizure or detention and shall along with such list deliver to him a notice in the form prescribed by rules to the effect that the property so seized or detained shall be sold by auction at the place and time to be specified therein. A copy of each list of the

property and the notice shall fortheiwth be sent to the Chief Municipal Officer or to such other

officer as he may authorize in this behalf.

1. (3) When the property sezed under sub-section (1) is subject to speedy and natural decay, or when the expense of keeping it together with the amount of octroi or toll chargeable is likely to exceed its value, the same shall be taken forthwith to the Chief Municipal Officer or such officer shall proceed to sell it forthwith.
2. (4) If at any time before the sale is completed the amount due, together with all charges incurred in connection with the seizure or detention is tendered to the Chief Municipal Officer or to the officer authorized as aforesaid the property seized shall forthwith be released.
3. (5) If no such tender is made, the property may be sold and the proceeds of the sale applied to the payment of-
   • (i) the amount due on account of toll;
   • (ii) the charges incurred in connection with the seizure, detention and sale.
4. (6) The surplus proceeds shall be forthwith credited to the Municipal fund and notice of such credit shall be given at the same time to the person in whose possession then property was at the time of seizure or detention. If such person claims the surplus by written application to the Chief Municipal Officer within one year from the date of the notice given under this sub-section, the Chief Municipal Officer shall refund the surplus to him.
5. (7) Any such surplus not so claimed shall be the property of the Council. 158 to 159.

Recovery of public auction or private contract.- Notwithstanding anything contained in this Act, the Municipality may, by public auction or private contract, lease the recovery of any of the taxes and fee which may be imposed under this Act, subject to the condition and limitation, if any, prescribed by the State Government in this behalf.

(1) The duty imposed by the Indian Stamp Act, 1899 (II of 1899), on instruments of sale, gift and usufructuary mortagage, respectively of immovable property, shall in the case of instruments affecting immovable property, shall in the case of instruments affecting immovable property situated within the limits of any Municipality and executed on or after the date on which the provisions of this Act come into force within Municipality be increased by one percentum on the The Madhya Pradesh* Municipalities Act, 1961 *छ-ग- राजपत्र दिनााँक 24-08-2001 के अदिसूचना क्रमाांक 2458/2001 दिनााँक 30-06--2001 के अनुसार "म-प्र." के स्थान पर "छ.ग."। value of the property so situated, or in the case of an usufructuary mortgage on the amount secured by the instrument as setforth in the instrument: Provided that nothing herein shall apply in case of the transfer of property where the value of the property so transferred or in the case of usufructuary mortgage the amount so secured does not exceed two thousand rupees. (2) For the purpose of this section, Section 27 of he Indian Stamp Act 1899 (II of 1899), shall be read as if it specifically required the particulars referred to therein to be set forth separately in respect of- (a) property situated in any Municipal area; (b) property not situated in any Municipal area. (3) The State Government shall, every year, pay to each Council from the Consolidated Fund of the State a grant-in-aid approximately equal to the extra duty realized under sub-section (1) in respect of the property situate within the are of each such Municipality. (4) The State Government may make rules for carrying out the purposes of this section.

The Madhya Pradesh* Municipalities Act, 1961

*छ-ग- राजपत्र दिनााँक 24-08-2001 के अदिसूचना क्रमाांक 2458/2001 दिनााँक 30-06--2001 के अनुसार "म-प्र." के स्थान पर "छ.ग."।

value of the property so situated, or in the case of an usufructuary mortgage on the amount secured by the instrument as setforth in the instrument: Provided that nothing herein shall apply in case of the transfer of property where the value of the property so transferred or in the case of usufructuary mortgage the amount so secured does not exceed two thousand rupees.

1. (2) For the purpose of this section, Section 27 of he Indian Stamp Act 1899 (II of 1899), shall be read as if it specifically required the particulars referred to therein to be set forth separately in respect of-
   • (a) property situated in any Municipal area;
   • (b) property not situated in any Municipal area.
2. (3) The State Government shall, every year, pay to each Council from the Consolidated Fund of the State a grant-in-aid approximately equal to the extra duty realized under sub-section (1) in respect of the property situate within the are of each such Municipality.
3. (4) The State Government may make rules for carrying out the purposes of this section.

Whenever it appears to the State Government that the balance of Municipal fund of any Council or its revenue is insufficient for the discharge of its duties or obligatory functions imposed upon it by the Act or

for meeting the expenditure incurred under Section 324 or for the performance of any duties in

respect of which it shall have been declared under section 327 to have committed default, the State Government may require the Council to impose within the Municipal are any tax which it is empowered to impose under Section 127 or to enhance any existing tax in such manner or to such extent as the State Government considers, fit, and the Council shll forthwith proceed to impose or enhance in accordance with the requisition such tax under the provisions of this Chapter, as if a resolution of the Council had been passed for the purpose under Section 129 or 130, as the case may be: Provided that-

1. (a) the State Government shall take into consideration any objection which the Council or any inhabitant of the Municipality may make against the imposition or enhancement of such tax;
2. (b) it shall not be lawful for he Council to abandon or modify or to abolish such tax when imposed, without the sanction of the State Government.
3. (c) the State Government may, at any time by notification, abolish or reduce the amount or rate of any tax levied or enhanced under this section and the levy of the tax or the enhancement, except as to arrears thereto for accrued due, shall thereupon cease or be modified accordingly.

A tax imposed under this Act shall not invalid for defect of form and where any property is described for the purpose of assessing any such tax, it shall be sufficient to describe it so that it shall be generally known and it shall not be necessary to name the owner or occupier.

The Madhya Pradesh* Municipalities Act, 1961

*छ-ग- राजपत्र दिनााँक 24-08-2001 के अदिसूचना क्रमाांक 2458/2001 दिनााँक 30-06--2001 के अनुसार "म-प्र." के स्थान पर "छ.ग."।