Chapter V FINANCE AND ACCOUNTS

(1) With effect from the date of commencement of this Act,- (a) a library cess in the form of a surcharge on,- (i) tax on lands and buildings; (ii) tax on entry of goods into the local area for consumption, use or sale therein; (iii) tax on vehicles; (iv) tax on professions, trades, calling and employments; shall be levied in the area within the jurisdiction of every City Library Authority under the relevant laws relating to local authorities providing for the levy of such taxes, at the rate of three paise for every rupee of the taxes so levied; (b) a library cess in the form of a surcharge on tax on lands and buildings shall be levied in the area within the jurisdiction of every District Library Authority, under the relevant laws relating to local authorities providing for the levy of such tax at the rate of three paise for every rupee of the tax so levied.

(2) A City Library Authority or District Library Authority may, with the previous sanction of the State Government, by notification, increase the rate of library cess levied on any item of tax specified in clause (a) or (b) of sub-section (1), subject to the condition that the rate shall not exceed six paise for every rupee of the tax levied.

(3) The cess levied under clause (a) or clause (b) of sub-section (1) or increased under sub-section (2) shall be collected by the municipal corporation, municipal council or other municipal body, or the village panchayat or other local authority having jurisdiction over the area as if the cess were a tax referred to in the said clause payable under the relevant laws for the time being in force in the area, and all the provisions of the said laws relating to the levy and collection of the said tax shall apply subject to such modifications as may be prescribed.

(4) Out of the cess collected by it under sub-section (3) every local authority shall be entitled to retain ten per cent of the amount collected towards the cost of collection and the balance shall be paid to the City Library Authority or the District Library Authority, as the case may be.

(1) The State Government shall make annually a grant to every District Library Authority of an amount equal to six per cent of the land revenue collection of the district.

(2) The amount granted to a District Library Authority under sub-section (1) shall be credited to the District Library Fund at such times and in such manner as may be prescribed.

(3) Land Revenue collection of a district for the purposes of sub-section (1) shall mean,- (a) until the revision settlement of land revenue under Chapter X of the Karnataka Land Revenue Act, 1964, the land revenue determined on the basis of the average land revenue collection of the district for a period of three years preceding the date of such determination; (b) after the determination of land revenue on the basis of the aforesaid revision settlement, the land revenue collected during the year preceding the year for which the grant is made.

(1) Every City Library Authority and District Library Authority shall maintain a Fund called the City Library Fund and the District

(1) The State Library Authority shall maintain a Fund called the State Library Fund from which all its payments under this Act shall be met. (2) There shall be credited to the State Library Fund the following sums, namely :- (a) the grants made by the State Government to the State Library Authority to perform the duties entrusted to it; (b) grants which the Central Government may make; (c) contributions and gifts made to the State Library Authority; (d) funds and other amounts collected by the State Library Authority under the rules or bye-laws made under this Act.

(1) An account shall be kept of the receipts and expenses of the State Library Authority and of each City Library Authority and District Library Authority. (2) The accounts shall be open to inspection, and shall be subject to audit, disallowance and surcharge and shall be dealt with in all other respects in such manner as may be prescribed.