Chapter XVI MUNICIPAL TAXATION

Enumeration of ordinary taxes and powers or control of State Government:

1. (1) Every municipality may levy,-
   • (a) Property tax; and
   • (b) a profession tax;
   • (c) a tax on carriages and animals;
   • (d) a tax on carts, and
   • (e) advertisement tax other than advertisements published in newspapers.
2. (2) Any resolution of a Board of Councillors determining to levy a tax shall specify the rate at which any such tax shall be levied and the date from which it shall be levied: Provided that before passing a resolution imposing a tax for the first time or increasing the rate of an existing tax the Executive Council shall publish a notice in at least one vernacular newspaper, on the notice board of the municipal office and in such other places within municipal limits as may be specified by the Board of Councillors, of its intention, fix a reasonable period not being less than one month for submission of objections and consider the objection, if any, received within the period specified: Provided further that any resolution abolishing any tax or reducing the rate at which a tax is levied shall be immediately reported to the State Government and in municipalities which have an outstanding loan either from the Government or from the public or any other local body, no such abolition or reduction shall be carried into effect without the sanction of the State Government: Provided also that, where any resolution under this section has taken effect for a particular year, no proposals to alter the rates or date fixed in such resolutions so far as that year is concerned shall be taken into consideration by the Board of Councillors.

Duty on transfers of property: In every municipality, a duty shall be levied on certain transfers of property in accordance with the provisions hereinafter contained in this Act.

Notification of new taxes: When a Board of Councillors shall determine subject to the provision of section 210 to levy any tax for the first time or at a new rate the Executive Officer shall forthwith publish a notification in the gazette specifying the rate at which, the date, from which, and the period of levy for which, such tax shall be levied.

Saving for certain provisions of the Constitution:

Description and classes of property tax Description and classes of property tax:

1. (1) If the Board of Councillors by resolution determines that a property tax shall be levied, such tax shall be levied on all buildings and lands within municipal limits save those exempted by or under this Act or any other law. The Property Tax may comprise-
   • (a) a tax for general purposes;
   • (b) a water and drainage tax to provide for expenses connected with the construction, maintenance, repair, extension or improvement of water or drainage works heretofore provided or hereafter to be provided;
   • (c) a lighting tax to provide for expenses connected with the lighting of the municipality by gas or electricity; and
   • (d) a scavenging tax to provide for expenses connected with the removal of rubbish, filth or the carcasses of animals from private premises: Provided that where the water and drainage tax is levied, the municipal council shall declare what proportion of the tax is levied in respect of water-works and the remainder shall be deemed to be levied in respect of drainage works and the proportion so declared shall also be specified in the notification published under section 212.
2. (2) Save as otherwise provided in this Act, these taxes shall be levied at such percentages of the annual value of buildings, or land which are occupied by or adjacent and appurtenant to, buildings or both as may be fixed by the Board of Councillors subject to the provision of section 210.

Levy of property tax on direction by Government:

1. (1) The State Government may by order published in the Official Gazette direct any municipality to levy the property tax referred to in sub-section 210 or any class of such tax, at such rate and with effect from such date (not being earlier than the first day of the half-year immediately following that in which order is published) as may be specified in the order.
2. (2) When an order under sub-section (1) has been published, the provision of this Act relating to property tax shall apply as if the Board of Councillors has on the date of publication of such order by resolution determined to levy the tax at the rate and with effect from the date specified in the order and as if no other resolution of the Board of Councillors under section 210 determining the rate at which and the date from which property tax shall be levied has taken effect.
3. (3) A Board of Councillors shall not alter the rate at which the property tax or any class of such tax is levied in pursuance of an order under sub-section (1) or abolish such tax except with the previous sanction of the State Government.

Method of assessment of property:

1. (1) Every building shall be assessed together with its site and other adjacent premises occupied as an appurtenance thereto unless the owner of the building is a different person from the owner of such suite or premises.
2. (2) The annual value of lands and buildings shall be deemed to be gross annual rent at which they may reasonably be expected to let from month to month or from year to year less a deduction in the case of buildings, of ten percent, of that portion of such annual rent which is attributable to the buildings alone, apart from their sites and adjacent lands occupied as an appurtenance thereto; and the said deduction shall be in lieu of all allowance for repairs or any other account whatever: Provided that-
   • (a) every land, which is not built upon, comprised in a holding shall be assessed separately; and
   • (b) machinery and furniture shall be excluded from valuations under this section.
3. (3) The State Government shall have power to make rules regarding the manner in which, the person or persons by whom and the intervals at which, the value of the land, the present cost of constructing the building and the amount to be deducted for depreciation, shall be estimated or revised, in any case or class of cases to which sub-section (2) applies.

General exemptions:

1. (1) The following buildings and lands shall be exempted from the property tax:
   • (a) places set apart for public worship and either actually so used or used for no other purposes;
   • (b) choultries for the occupation of which no rent is charged and choultries the rent charged for the occupation of which is used exclusively for charitable purposes;
   • (c) Buildings used for educational purposes including hostels attached thereto and places used for the charitable purpose of sheltering the destitute or animal and libraries and playground which are open to the public;
   • (d) Charitable hospitals and dispensaries;
   • (e) Burial and burning grounds;
   • (f) Buildings or lands belonging to the municipality and
   • (g) Any irrigation work vesting in the State Government including the bed of a water-course, or any building or land adjacent and appertaining to such irrigation work; Government lands set apart free for recreation purposes; and all such other Government property being neither buildings nor land from which in the opinion of the State Government any income could be derived as may from time to time be notified by the State Government: Provided that nothing contained in clauses (a) and (c) shall be deemed to exempt from property tax any building or land for which rent is payable by the person or persons using the same for purposes referred to in the said clause. Explanation: The exemption granted under this section shall not extend to residential quarters attached to schools and colleges not being hostels or to residential quarters attached to hospitals, dispensaries and libraries.
2. (2) The water and drainage tax shall not be levied on any land used exclusively for agricultural purposes and not deriving any benefit from the water or drainage works on account of which the tax is imposed.
3. (3) The Board of Councillors may with the previous sanction of the State Government exempt any particular part of a municipality from the payment of the whole of a portion of the water and drainage tax or the lighting tax on the ground that such area is not deriving full benefit from the water-supply and drainage or from the lighting system.
4. (4) The Board of Councillors may exempt any building or land from the whole or any portion of the scavenging tax if it is satisfied that the owner or occupier has made efficient arrangement for the daily removal therefrom of rubbish, filth and carcasses of animals.
5. (5) The Board of Councillors may by a general resolution exempt any building or land from the property tax-
   • (i) if the annual value of the same does not exceed a sum specified in the said resolution, such sum not being greater than rupees one hundred and eighty, and
   • (ii) the proprietor does not own any other building or land assessed to the property tax and is not liable to profession or income-tax.

Classification of municipal area for the purpose of taxation:

1. (1) The State Government may, for the purpose of fixing property tax, classify the municipal area into such number of grades as it may, by a notification, determine, and fix rate of property tax for each grade.
2. (2) The rate of same class of property tax under this section need not be uniform for all grades, and different rates may be fixed for different grades.

Property tax a first charge on property: The property tax on buildings and lands shall, subject to the prior payment of land revenue, if any, due to the Government thereon, be a first charge upon the said buildings or lands and upon the movable property, if any, found within or upon the same and belonging to the person liable to such tax.

Property tax when payable:

Vacancy remission Vacancy remission:

1. (1) When any building whether ordinarily let or occupied by the owner himself has been vacant and unoccupied for thirty or more consecutive days in any half-year, the Executive Council shall remit so much, not exceeding one-half of such portion of the tax as relates to the building only as is proportionate to the number of days during which the building was vacant and unoccupied in the half-year.
2. (2) Every demand for remission under sub-section (1) shall be made during the half-year in respect of which the remission is sought or in the following half-year and not afterwards. (3)
   • (a) No demand for such remission shall be entertained unless the owner of the building or his agent has previously thereto delivered notice to the Executive Officer-
     • (i) that the building is vacant and unoccupied; or
     • (ii) that the building will be vacant and unoccupied from a specified date either in the half-year in which notice is delivered or in the succeeding half-year.
   • (b) the period in respect of which the remission is made shall be calculated-
     • (i) if remission is sought in respect of the half-year in which notice is delivered, from the date of delivery of the notice or from the date on which the building became vacant and unoccupied, whichever is later; and
     • (ii) if remission is sought in respect of the half-year succeeding that in which the notice is delivered, from the commencement of the half-year in respect of which remission is sought or from the date on which the building became vacant and unoccupied, whichever is later.
   • (c) Every notice under clause (a) shall expire with the half-year succeeding that during which it is so delivered, and shall have no effect thereafter.

Obligation of transferor and transferee to give notice of transfer:

1. (1) Whenever the title of any person primarily liable to the payment of property tax on any premises to or over such premises is transferred, the person whose title is transferred, and the person to whom the same shall be transferred shall within three months after the execution of the instrument of transfer or after its registration if it be registered or after the transfer is effected, if no instrument be executed, give notice of such transfer to the Executive Officer.
2. (2) In the event of the death of any person primarily liable as aforesaid the person to whom the title of the deceased shall be transferred, as heir or otherwise shall give written notice of such transfer to the Executive Officer within one year from the death of the deceased.
3. (3) The notice to be given under this section shall be in such from as the executive officer may direct and the transferee or the person to whom the title passes, as the case may be, shall, if so required, be bound to produce before the Executive Council any documents evidencing the transfer or succession.
4. (4) Every person who makes a transfer as aforesaid without giving such notice to the Executive Officer shall in addition to any other liability which he incurs through such neglect, continue liable for the payment of property tax assessed on the premises transferred until he gives notice or until the transfer shall have been recorded in the municipal registers but nothing in this section shall be held to effect-
   • (a) the liability of the transferee for the payment of the said tax, or
   • (b) the prior claim of the municipality under section 219.

Owner's obligation to give notice of construction, reconstruction or demolition of building:

1. (1) If any building in a municipality is constructed, or reconstructed, the owner shall give notice thereof to the Executive Officer within fifteen days from the date of completion or occupation of the building, whichever is earlier.
2. (2) If such date falls within the last two months of half-year, the owner shall, subject to notice being given under sub-section (1), be entitled to a remission of the whole of the tax or enhanced tax, as the case may be, payable in respect of the building only for that half-year.
3. (3) If such date falls within the first four months of a half-year, the owner shall, subject to notice being given under sub-section (1), be entitled to a remission of so much not exceeding a half of the tax or enhanced tax, as the case may be, payable in respect of the building only, for that half-year, as is proportionate to the number of days in that half-year preceding such date.
4. (4) If any building in a municipality is demolished or destroyed the owner shall, until notice thereof is given to the Executive Officer, be liable for the payment of the property tax which would have been leviable had the building not been demolished or destroyed.
5. (5) If such notice is given within the first two months of a half-year, the owner shall be entitled to a remission of the whole of the tax of the building only for that half-year.
6. (6) If such notice is given within the last four months of a half-year, the owner shall be entitled to a remission of so much not exceeding a half of the tax payable in respect of the building only for that half-year as is proportionate to the number of days in that half-year succeeding the demolition as the case may be.

Remission of tax in areas included or excluded in the middle of a half-year:

1. (1) If any area is included within a municipality the owner of every building or land in such area shall-
   • (a) if the date of such inclusion falls within the last two months of a half-year, not be liable to pay any property tax in respect thereof for that half-year and
   • (b) if such date falls within the first four months of a half-year, be entitled to a remission of so much not exceeding a half of the property tax payable in respect thereof for that half-year, as is proportionate to the number of days in that half-year preceding such date.
2. (2) If any area is excluded from a municipality the owner of every building or land in such area shall be entitled-
   • (a) if any date of such exclusion falls within the first two months of a half-year, to a remission of the whole of the property tax in respect thereof for that half-year; and
   • (b) if such date falls within the last four months of a half-year, to a remission of so much not exceeding a half of the proportionate to the number of days in that half-year succeeding such date.
3. (3) No remission shall be granted under sub-section (2) in respect of any building or land unless an application for such remission is made to the Executive Officer within three months from the date of the exclusion of the area in which the building or land is situated.

Power of Executive Officer to call for information and to enter upon premises:

1. (1) For the purposes of assessing the property tax, the Executive Officer may, by notice, call on the owner or occupier of any land or building to furnish him, within thirty days after the service of the notice, where the notice is served upon the State Government or a company and within seven days after such service in other cases, with returns of the rent payable for the land or building, the cost of erecting the building and the measurements of the land and with such other information as the Executive Officer may require; and every owner and occupier on whom such notice is served shall be bound to comply with it and to make a true return to the best of his knowledge or belief.
2. (2) For the purpose aforesaid the executive officer may enter, inspect, survey and measure such building or land, after giving twenty-four hours notice to the owner or occupier.

Profession tax:

1. (1) The Board of Councillors may by a resolution determine that a profession tax shall be levied, and publish a notification of such determination under section 212. Then from the effective date of the notification every company, firm, association or Hindu undivided family transacting business in the municipal area for not less than sixty days in the aggregate in any half year shall pay to the municipality a half-yearly profession tax.
2. (2) For the purpose of sub-section (1) the Board of Councillors may make a regulation and fix therein taxable limits, rates of taxes payable and other matters connected with such a tax.

Liability of member of firm, association and joint Hindu families to profession-tax:

Liability of servants or agents to profession tax Liability of servants or agents to profession tax: If a company or person employs a servant or agent to represent it or him for the purpose of transacting business in a municipal area such company or person shall be deemed to transact business in the municipal area and such servant or agent shall be liable for the profession tax, in respect of the business of such company or person, whether or not such servant or agent has power to make binding contracts on behalf of such company or person.

Service of Notice on failure of payment of tax: If the profession tax due from any company or person is not paid, the Executive Officer shall cause a notice to be served on such company or person which shall be treated as confidential and copies thereof shall not be granted to the public.

Statements, returns etc., to be confidential:- All statements made, returns furnished or accounts or documents produced in connection with the assessment of profession tax by any company or person, shall be treated as confidential and copies thereof shall not be granted to the public.

Requisition on owner or occupier to furnish list of persons liable to tax: The Executive Officer may by notice require the owner or occupier of any building or land and every secretary or manager of a hotel, boarding or lodging house, club, or residential chambers to furnish within a specified time a list in writing containing the name of all persons occupying such building, land, hotel, boarding or lodging house, club or residential chambers and specifying the profession, art calling or appointment of every such person and the rent, if any paid by him and the period of such occupation.

Requisition on employers or their representatives to furnish list: The Executive Officer may by notice require any employer or the head or secretary or manager of any public or private office, hotel, boarding house or club or of a firm or company-

1. (a) to furnish within a specified time a list in writing of the names of all persons employed by such employer or by such office, hotel, boarding house, club, firm or company as officers, servants, workers, agents suppliers, or contractors, with a statement, of the salary or income of such persons, and
2. (b) to furnish particulars in regard to any company of which such employer, head, secretary or manager, as the case may be, is the agent.

Deduction of profession tax from salary or wages or other sum:

1. (1) Every employer shall, on receipt of a requisition from the executive officer, deduct from the salary or wages of any person employed by the employer as an officer or a servant or from any sum payable by the employer to any person employed by the employer as worker, agent, supplier or contractor, such amount of profession tax, as may be specified in such requisition, as being due from such employed person. Explanation: In this sub-section "employer" includes the head or secretary, or manager of any public or private office, hotel, boarding houses, club, firm or company.
2. (2) Every person responsible, for making any deduction under sub-section (1) may at the time of making the deduction, increase or reduce the amount to be deducted under sub-section (1) for the purpose of adjusting any excess or deficiency arising out of any previous deduction or failure to deduct during the half-year.
3. (3) any deduction made in accordance with the provisions of sub-sections (1) and (2) and paid to the municipality shall be treated as payment of profession tax on behalf of the person from whose salary or wages the deduction was made.
4. (4) Any sum deducted in accordance with the provisions of sub-sections (1) and (2) shall be paid within such time as may be fixed by the Executive Officer for the credit to the municipality
5. (5) Every person making the deduction under sub-section (1) or sub-section (2) shall, at the time of payment of the salary or wages or sum, furnish to the person to whom such payment is made a certificate to the effect that profession tax has been deducted, and specifying the amount so deducted and such other particulars as may be determined by a regulation.
6. (6) Where profession tax due from any employed person is deducted under sub-section (1) or sub-section (2) the person from whose salary or wages the deduction was made shall not be called upon to pay the tax himself to the extent to which tax has been so deducted.
7. (7) Every person making the deduction under sub-section (1) or sub-section (2) shall prepare and, within such period as may be specified by the Executive Council after the expiry of the half year, deliver or cause to be delivered to the Executive Officer in the such form and verified in such manner as may be required, a return in writing showing the name and residential address of every person from whose salary or wages deduction was made under sub-section (1) or sub-section (2), and of every person to whom the sum from which such deduction was made is payable, the amount so deducted, and the half year to which the deduction relates.
8. (8) The provisions of this section shall apply notwithstanding any law to the contrary for the time being in force.

Power on carriage and animals:

1. (1) Without the permission of the Board of Councillors, no person shall use or cause to be used carriage of any kind or animal or cart for conveyance of human beings or goods in any municipal area.
2. (2) The Board of Councillors may having regard to the congestion and heavy use of public roads and streets, determine any place or places in a municipal area where use of carriage or animal or cart for conveyance shall be totally forbidden and in such place or places it shall not be lawful for any person to possess, keep or use carriage of any kind or cart animal for conveyance purposes.
3. (3) The Board of Councillors may, having regard to the condition of public roads and streets, determine any place or places in a municipal area where use of carriage or animal or cart or any of them can be permitted with such restrictions as the Board of Councillors may impose. Thereupon, the Executive Council may grant permission for use of carriage or animal or cart or any of them for conveyance purposes with such restrictions and conditions as may be determined by the Board of Councillors and may levy tax for such carriage or animal.

General provision regarding tax on carriage and animals:

1. (1) If the Board of Councillors determines that a tax on carriages and animals shall be levied as may be determined by a regulation in this behalf, the Executive Officer shall levy the said tax half-yearly on such carriages and animals kept or used within the municipality.
2. (2) The rates of the tax shall be determined and revised from time to time by the Board of Councillors.

Liability to tax according to period for which carriage or animal has been kept:

1. (1) Every person having possession, custody or control of any taxable carriage or animal shall be liable for the full half-yearly tax if the carriage or animal has been kept or used within the municipality for an aggregate period of not less than sixty days in the half-year.
2. (2) If such aggregate period exceeds fifteen days but is less than sixty days a moiety of the half-yearly tax shall be leviable.
3. (3) If such aggregate period does not exceed fifteen days, no tax shall be leviable for the half-year.
4. (4) Every person having possession, custody or control of any taxable carriage or animal within the municipality shall, until the contrary is shown, be presumed to have kept or used the same within the municipality for sixty days in the half-year.
5. (5) Notwithstanding anything contained in sub-sections (1) and (2), no person shall be liable to pay tax to the municipality during any half-year on account of any carriage or animal in respect of which the full tax for the same half-year has already been paid to the municipality by some other person.

Exemptions: The carriage and animal tax shall not be levied on-

1. (a) carriage and animals belonging to the Government and used for military purposes:
2. (b) carriages and animals kept solely for sale by carriage-maker and dealers.
3. (c) carriages which have been under repair or standing at a carriage-makers during the whole of the half-year.

Composition: With the sanction of the Board of Councillors or in accordance with regulations framed by that body, the Executive Council may compound for any period not exceeding one year, with any livery-stable keeper or other person keeping carriages and animals for sale or hire, for a certain sum to be paid in lieu of the carriage and animal tax.

Grant of licence on payment of tax: When any person pays the amount of tax due in respect of any carriage or animal, the Executive Council shall grant him a licence to keep or use such carriage or animal for the period to which the payment relates.

Power to require numbers to be affixed to bicycles, etc.:

1. (1) The Executive Council may direct that a municipal number shall be affixed to every carriage let out for hire within the municipality and to every bicycle and tricycle kept or used within the municipality.
2. (2) The numbers affixed under sub-section (1) shall be registered in the municipal office.

General provision regarding cart tax:

1. (1) If the Board of Councillors determines that a tax shall be levied on carts, the executive council shall levy the said tax half-yearly at the rate which shall not exceed rupees ten per cart per half-year fixed by the Executive Council and specified in the notification to be published in the gazette.
2. (2) Notwithstanding anything contained in sub-section (1) no person shall be liable to pay tax to the municipality during any half-year on account of any cart in respect of which the tax for the same half-year has already been paid to the municipality by some other person.
3. (3) Every owner of any such cart shall register it once in every half-year in the municipal office.
4. (4) The Executive Council may direct that a municipal numbers shall be affixed to every registered cart.
5. (5) The Executive Council shall notify certain days in every half-year for the registration and numbering of carts and the payment of the tax.
6. (6) All registrations made and numbers affixed under this section shall be entered in a book to be kept for the purpose at the municipal office.
7. (7) Such book shall be open to the inspection of any person who pays any tax to the municipality at all reasonable times without charge.
8. (8) This section shall not apply to carts belonging to the Government and used for military purpose, or carts-kept solely for sale by cart-makers and dealers.

Power to remit tax: The tax on carts shall not be levied on any cart which is shown to the satisfaction of the Executive Council to have been kept or used within the municipality for an aggregate period not exceeding fifteen days in the half-year or to have been under repair or standing at a cart maker's during the whole of the half-year.

Seizure of vehicle not bearing numbers:

1. (1) If a municipal number is not affixed to a carriage or cart in pursuance of a direction issued under section 240 or section 241, as the case may be, the Executive Council may at any time seize and detain the vehicle and the animal, if any, by which it is drawn.
2. (2) If the vehicle or animal seized be not claimed and the tax thereon paid within ten days from the date of seizure Executive Council may direct that the vehicle or animal shall be sold in public auction and the proceeds of the sale applied to the payment of-
   • (i) the tax, if any due, on the vehicle or animal sold;
   • (ii) such penalty not exceeding the amount of the tax as the executive council may direct; and
   • (iii) on account of charges incurred in connection with the seizure, detention and sale.
3. (3) If the owner of the vehicle or animal or other person entitled thereto claims the same within ten days from the date of seizure or at any time before the sale, it shall be returned to him on payment of-
   • (i) the tax due thereon;
   • (ii) such penalty not exceeding the amount of the tax as the Executive Council may direct; and
   • (iii) a sum of rupees five on account of charges incurred in connection with the seizure and detention.

Prohibition of advertisement without written permission of Chairman:

1. (1) No person shall erect, exhibit, fix or retain upon or over any land, building, wall, hoarding, frame, post, kiosk or structure any advertisement, or display any advertisement to public view in any manner whatsoever, visible from a public street or public place (including any advertisement exhibited by means of cinematograph), in any place within a municipal area without the written permission of the Chairman.
2. (2) The Chairman shall not grant such permission if-
   • (a) a licence for the use of the particular site for the purpose of advertisement has not been taken out, or
   • (b) the advertisement contravenes any provisions of this Act or the rules or the regulations made thereunder, or
   • (c) the tax, if any, due in respect of the advertisement has not been paid.
3. (3) No person shall broadcast any advertisement, except on radio or television, without the written permission of the Chairman.

Licence for use of site for the purpose of advertisement:

1. (1) Except under and in conformity with the terms and conditions of a licence, no person, being the owner, lessee, sub-lessee, occupier or an advertising agent, shall use or allow to be used any site in any land, building, wall or erect or allow to be erected on any site any hoarding, frame, post, kiosk, structure, neon-sign or sky-sign for the purpose of display of any advertisement.
2. (2) For the purpose of advertisement, every person-
   • (a) using any site prior to the commencement of this Act, within ninety days from the date of commencement of this Act, or
   • (b) intending to use any site, or
   • (c) whose licence for the use of any site is about to expire, shall apply for a licence or renewal of a licence, as the case may be, to the Chairman in such form as may be specified by the Board of Councillors.
3. (3) The Chairman shall, after making such inspection as may be necessary and within thirty days of the receipt of the application, grant, refuse, renew or cancel a licence, as the case may be, on payment of such fee as may be determined by the Board of Councillors by regulations.
4. (4) If the Chairman, having regard to public safety, traffic hazard or aesthetics, is of opinion that the proposed site for any advertisement is unsuitable, he may refuse a licence or refuse to renew any existing licence.
5. (5) Every licence shall be for a period of one year except in the case of sites used for temporary fairs, exhibitions, sports events or cultural or social programmes.
6. (6) The Chairman shall cause to be maintained a register wherein the licences issued under this section shall be recorded in such manner as may be determined by regulations.

Tax on advertisements:

1. (1) Every person who exhibits, fixes or retains upon or over any land, building, wall, hoarding, frame, post, kiosk or structure any advertisement, or displays any advertisement to public view in any manner whatsoever, visible from a public street or public place (including any advertisement exhibited by means of cinematograph), shall pay for every advertisement, which is so erected, exhibited, fixed or retained or displayed to public view, a tax calculated at such rate as the Board of Councillors may determine: Provided that a surcharge, not exceeding fifty percent of the rate applicable to any case, may be imposed on any advertisement on display in temporary fairs, exhibitions, sports events or cultural or social programmes.
2. (2) Notwithstanding anything contained in sub-section (1), no tax shall be levied under this section on any advertisement which-
   • (a) relates to a public meeting or to an election to Parliament or the Board of Councillors or a Municipality or any other local authority or to any candidature in respect of such election; or
   • (b) is exhibited within the window of any building, if the advertisement relates to any trade, profession or business carried on that building; or
   • (c) relates to any trade, profession or business carried on within the land or the building upon or over which such advertisement is exhibited or to any sale or letting of such land or building or any effects therein or to any sale entertainment or meeting to be held on or upon or in the same; or
   • (d) relates to the name of the land or the building upon or over which the advertisement is exhibited or to the name of the owner or the occupier of such land or building; or
   • (e) relates to any activity of or in aid of the Government or a Municipality.
3. (3) The tax on any advertisement leviable under this section shall be payable in advance in such number of instalments and in such manner as the Board of Councillors may by regulations determine: Provided that the Board of Councillors may, under the terms and conditions of a licence, require the licensee to collect and pay to the Municipality, subject to a deduction, not exceeding ten percent, to be kept by him as collection charges, the amount of tax in respect of such advertisements as are displayed on any site for which he is the licensee.

Presumption in case of contravention: Where any advertisement has been erected, exhibited, fixed or retained upon or over any land, building, wall, hoarding, frame, post, kiosk or structure or displayed to public view from a public street or public place in contravention of the provisions of this Act or the regulations made thereunder, it shall be presumed, unless the contrary is proved, that the contravention has been committed by the person or persons on whose behalf the advertisement purports to be or the agent or agents of such person or persons.

Power of Chairman in case of contravention: If any advertisement is erected, exhibited, fixed or retained in contravention of the provisions of this Act or the regulations made thereunder, the Chairman may require the owner or the occupier of the land, building, wall, hoarding, frame, post, kiosk or structure upon or over which the same is erected, exhibited, fixed or retained, to take down or remove such advertisement or may enter any land, building or property and cause the advertisement to be dismantled, taken down, removed, spoiled, defaced or screened. Explanation I: The word "structure" in this Chapter includes any movable board on wheels used as an advertisement or advertisement medium. Explanation II: The word "advertisement", in relation to a tax on advertisement under this Act, shall mean any word, letter, model, sign, sky-sign, placard, notice, device or representation, whether illuminated or not, in the nature of, and employed wholly or in part for the purposes of, advertisement, announcement or direction.

Fine for not paying tax on advertisement: If any person erects, exhibits, fixes or retains any advertisement referred to in this Chapter without paying the tax due, he shall be punished with fine to be imposed by the Executive Council which-

1. (i) may extend to an amount equal to three times the amount payable as such tax and
2. (ii) shall not ordinarily be less than an amount equal to one and a half times such tax:

Manner of recovery of taxes under the Act Manner of recovery of taxes under the Act: Save as otherwise provided in this Act, any tax levied under this Act may be recovered in accordance with the following procedure and in such manner as may be prescribed:

1. (a) by presenting a bill, or
2. (b) by serving a notice of demand, or
3. (c) by distraint and sale of a defaulter's immovable property, or
4. (d) by the attachment and sale of a defaulter's immovable property, or
5. (e) in the case of property tax on lands and buildings, by attachment of rent due in respect of the land or the building, or
6. (f) as a public demand under the Mizoram Public Demands Recovery Act, 2001.

Incidence of property tax:

1. (1) The property tax on land or building shall be leviable in equal shares upon the owner and the occupier. Provided that the surcharge thereof shall be leviable upon the occupier:
2. (2) On the failure to recover any sum due on account of property tax from the owner, such sum shall be recoverable from the occupier by attachment of rent payable by him to the owner.
3. (3) An occupier from whom any sum is recovered under sub-section (2) shall be entitled to reimbursement by the owner for the payment of such sum or adjustment of such sum against the rent payable.

Presentation of bill:

1. (1) When a property tax becomes due on any land or building, the Chairman shall cause to be presented to the owner or the occupier thereof a bill for the amount due. Explanation: A bill shall be deemed to be presented under this section if it is sent by post under certificate of posting to the person liable for payment of the amount included in the bill, and in such case, the date borne on such certificate of posting shall be deemed to be the date of presentation of the bill to such person.
2. (2) Every such bill shall specify the particulars of the tax and the period for which it is due.

Amount of tax payable, and tax to be paid in advance:

1. (1) Unless the amount entered in the assessment list is subsequently altered as provided in this Act, the amount entered in the list shall be deemed to be the amount due on account of property tax on the annual value of holdings. In the case of subsequent alteration, if any, the amount in relation to which the assessment or rating is so altered shall be deemed to be the amount due.
2. (2) Such tax shall be payable in quarterly instalments and every such instalment shall be deemed to be due in the first day of the quarter in respect of which it is payable.
3. (3) If any amount due is paid within thirty days from the date of presentation of the bill under section 252, a rebate, not exceeding ten percent of such amount as may be determined by the Board of Councillors, shall be allowed.
4. (4) Subject to the provisions of sub-section (2), the payment of taxes may be made in such manner as may be specified by the Executive Council.

Notice of demand and notice fee:

1. (1) Save as otherwise provided in this Act, if the amount of the property tax for which a bill has been presented under section 252 is not paid within thirty days from the presentation thereof or if the tax on advertisements is not paid after it has become due, the Chairman may cause to be served upon the person liable for the payment of the same, a notice of demand in such form as may be specified by the Executive Council.
2. (2) For every notice of demand which the Chairman causes to be served on any person under this section, a fee of such amount, not exceeding twenty-five rupees, as the Board of Councillors may determine shall be payable by such person and shall be included in the cost of recovery.
3. (3) If any person liable for payment of any tax under this Act does not, within thirty days of the service of the notice of demand, pay the sum due, he shall be deemed to be in default.
4. (4) When a person liable for payment of any tax under this Act is deemed to be in default under sub-section (3), such sum, not exceeding fifteen percent of the amount of the tax, as may be determined by the Board of Councillors may be recovered from him by way of penalty, in addition to the amount of the tax and the fee payable under sub-section (2).
5. (5) On the amount of a bill remaining unpaid after its presentation under sub-section (1) of section 252 simple interest shall be payable at such rate, not exceeding ten percent per annum, as may be determined by the Board of Councillors from time to time, on the said amount from the day next after the expiry of thirty days from the commencement of the quarter following that in which the bill is presented. Explanation: In calculating the interest payable under this sub-section, a fraction of a rupee in the amount of a bill on which interest is to be calculated shall:
   • (a) where it is less than 50 paise, be left out of account, and
   • (b) where it is not less than 50 paise, be taken as one rupee.
6. (6) The amount due as penalty or interest under this section shall be recoverable as an arrear of tax under this Act.

Recovery of tax:

1. (1) If any person liable for payment of any tax does not, within sixty days of the service of notice of demand under section 254, pay the amount due, such sum together with costs, interest due and penalty may be recovered under a warrant issued in such form as may be specified by the Executive Council in this behalf, either by distress and sale of movable property, or by attachment and sale of immovable property, of the defaulter as the Chairman may decide: Provided that the Chairman shall not recover any sum the liability of which has been remitted on review under the provisions of this Act.
2. (2) Every warrant issued under sub-section (1) shall be signed by the Chairman or any other officer authorised by him in this behalf.

Distress:

1. (1) It shall be lawful for any officer or other employee of the Municipality, to whom a warrant issued under this Chapter is addressed, to distrain, wherever it may be found in any place within the municipal area, any movable property belonging to the person therein named as defaulter, subject to the following conditions, exceptions and exemptions:
   • (a) the following property shall not be distrained:
     • (i) the necessary wearing apparel and bedding of the defaulter, his wife and children and their cooking and eating utensils;
     • (ii) tools of artisans;
     • (iii) books of accounts;
   • (b) the distress shall not be excessive, that is to say, the property distrained shall be, as nearly as possible, equal in value to the amount recoverable under warrant, and if any property has been distrained which, in the opinion of the Chairman, should not have been distrained, it shall forthwith be released.
2. (2) The person charged with the execution of a warrant shall, in the presence of two witness, forthwith make an inventory of the property which he seizes under such warrant, and shall, at the same time, give to the person in possession thereof at the time of seizure a notice in writing in such form as may be specified by the Executive Council in this behalf that the said property shall be sold on the expiry of the period as therein mentioned.
3. (3) If there is reason to believe that any property seized under a warrant of distress, if left in the place where it is found, is likely to be removed by force, the officer executing the warrant may take it to the office of the Municipality or to any other place appointed by the Chairman.

Disposal of distrained property:

1. (1) When the property seized subject to speedy and natural decay or when the expense of keeping it in custody is, when added to the amount to be recovered, likely to exceed its value, the Chairman shall give notice to the person in whose possession the property was at the time of seizure that it will be sold at once, and he shall sell it accordingly by public auction unless the amount mentioned in the warrant is forthwith paid.
2. (2) If the warrant is not, in the meantime, suspended by the Chairman or discharged, the property seized shall, after the expiry of the period mentioned in the notice served under sub-section (2) of section 256 be sold by public auction by order of the Chairman.

Attachment and sale of immovable property:

1. (1) When a warrant is issued for the attachment and sale of immovable property, the attachment shall be made by an order prohibiting the defaulter from transferring or charging the property in any way and all persons from any benefit from such transfer or charge and declaring that such property shall be sold in auction unless the amount of tax due with costs of recovery is paid within the date specified in the warrant.
2. (2) A copy of the order under sub-section (1) shall be affixed on a conspicuous part of the property and upon a conspicuous part of the office of the Municipality.
3. (3) Any transfer of, or charge on, the property attached, or any interest therein, made without written permission of the Chairman, shall be void against all claims of the Municipality enforceable under the attachment.
4. (4) The surplus of the sale proceeds, if any, shall, immediately after the sale of the property, be credited to the Municipal Fund, and notice of such credit shall be given at the same time to the person whose property has been sold or his legal representative, and if the same is claimed by written application to the Chairman within one year from the date of the notice, a refund thereof shall be made to such person or representation.
5. (5) All sales of property under this section shall, as far as practicable, be regulated by the procedure in force for the time being in the civil court with respect to sale after attachment.
6. (6) No officer or employee of the Municipality shall directly or indirectly purchase any property at any such sale.
7. (7) Any surplus, not claimed within one year as aforesaid, shall be the property of the Municipality.

Fee for distraint and attachment: For every distraint and attachment made in accordance with the foregoing provisions of this Chapter, a fee of such amount not exceeding two and a half percent of the amount of the tax due, as shall, in each case, be fixed by the Chairman shall be charged and included in the costs of recovery.

Recovery from a person about to leave jurisdiction of Municipality:

1. (1) If the Chairman has reason to believe that any person, from whom any sum is due or is about to become due on account of any tax, is about to move from the jurisdiction of the Municipality, he may direct the immediate payment by such person of the sum so due or about to become due and to cause a notice of demand for the same to be served on such person.
2. (2) If, on the service of such notice, such person does not forthwith pay the sum so due or about to become due, the amount shall be leviable by distress or attachment and sale in the manner hereinbefore provided, and the warrant of distress or attachment and sale may be issued and executed without any delay.

Sale of movable property situated beyond limits of municipal area:

1. (1) If the Chairman is unable to recover any sum due upon distraint, the Sub-divisional Magistrate having jurisdiction may, on the application of the Chairman, issue an warrant to any officer of the Court for the distress and sale of any movable property or effects belonging to the defaulter within any other part of the jurisdiction of the Sub-divisional Magistrate or forward the warrant for the distress and sale of any movable property belonging to the defaulter within the jurisdiction of any other Subdivisional Magistrate exercising jurisdiction within Mizoram and such other Subdivisional Magistrate shall endorse the warrant so issued, and cause it to be executed and the amount, if recovered, to be remitted to the Sub-divisional Magistrate issuing the warrant who shall remit the same to the Chairman.

Recovery under Public Demand Recovery Act: After a defaulter has been proceeded against unsuccessfully under the foregoing provisions of this Chapter or with partial success, any sum due or the balance of any sum due may be recovered by the Chairman as a public demand under the Mizoram Public Demand Recovery Act, 2001 together with interest and cost of recovery.

Distraint not unlawful for want of form: No distress under this Act shall be deemed to be unlawful nor shall any person making the same be deemed to be a trespasser on account of-

1. (a) any defect or want of form in the notice, summons, notice of demand, warrant of distress, inventory or other proceeding relating thereto, or
2. (b) any irregularity committed by such person:

Occupier to pay rent towards satisfaction of property tax Occupier to pay rent towards satisfaction of property tax:

1. (1) For the purpose of recovery of any property tax, the Chairman may cause to be served on any occupier a notice requiring him to deposit in the Municipal Fund any rent due or falling due from him in respect of the land or the building to the extent necessary to satisfy the sum due on account of property tax in respect of such land or building.
2. (2) Every notice under sub-section (1) shall operate as an attachment of rent as aforesaid unless the sum due shall have been paid and satisfied, and the occupier shall be entitled to credit in the account with the person to whom such rent is due, any sum paid by him to the Municipality in pursuance of such notice: Provided that if the person to whom such rent is due is not the person primarily liable for payment of the property tax, he shall be entitled to recover from the person primarily liable for the payment of such tax any amount for which credit is claimed as aforesaid.
3. (3) If any occupier fails to deposit in the Municipal Fund any rent due or falling due which he is required to deposit in pursuance of a notice served upon him as aforesaid, the amount of such rent may be recovered from him by the Municipality as an arrear of tax under this Act.

Recovery of tax from unauthorised occupier of land or building:

1. (1) Where any land or building is in the occupation of any person not being the owner or occupier of such land or building, the amount of any tax, toll, fee, rate or other money due under the Act and assessed on the annual value of such land or building may be recovered from such person as if he were an occupier of such land or building: Provided that no sum shall be recovered from such person if it is not due in respect of the period during which such person has been in occupation of such land or building.
2. (2) The assessment or recovery made under this section shall not by itself be deemed to confer upon such person any right or title as the lawful occupier of the land or the building as aforesaid.

Recovery of property tax on land or building or any other tax or charge in the case of unknown owner of land or premise or dispute ownership:

1. (1) If any money is due under this Act from the owner of any land or premises on account of property tax or any other tax, expenses or charges recoverable under this Act, and if the owner of such land or premises is unknown or the ownership thereof is disputed, the Chairman may publish twice, at an interval of not less than two months, a notification of such dues and of sale of such land or premises for realisation thereof and after the expiry of not less than one month from the date of last publication of the notification, unless the amount recoverable is paid, may sell such land or premises by public auction to the highest bidder, who shall deposit, at the time of sale, twenty-five percent of the purchase money, and the balance thereof within thirty days of the date of sale. Such notification shall be published in the Official Gazette and in local newspaper and by displaying on the land or the premises concerned.
2. (2) After deducting the amount due to the Municipality as aforesaid, the surplus sale proceeds, if any, shall be credited to the Municipal Fund and may be paid, on demand, to any person who establishes his right thereto to the satisfaction of the Chairman or a court of competent jurisdiction.
3. (3) Any person may pay the amount due at any time before the completion of the sale, whereupon the sale shall be abandoned.

Taxes not invalid for defect of form Taxes not invalid for defect of form:

1. (1) No assessment and no charge or demand of the property tax or any other tax made under this Act shall be called in question or shall in any way be affected by reason of-
   • (a) any clerical or arithmetical mistake arising from any accidental slip or omission-
     • (i) in the name, residence, place of business or occupation of any person liable to pay such tax, or
     • (ii) in the description of any property or thing liable to such tax, or
     • (iii) in the amount of assessment of such tax, or (b)
     • (i) any clerical error, or
     • (ii) any defect of form, not being of a sustained nature: Provided that the Chairman may, either of his own motion or on the application of any aggrieved person, correct any clerical or arithmetical mistake or clerical error or defect of form as aforesaid.
2. (2) It shall suffice for the purpose of levying the tax under this Act or of any assessment or valuation of any property under this Act, if the property taxed or assessed or valued is so described as to be generally known, and it shall not be necessary to name the owner or the occupier thereof.

Writing off irrecoverable dues: The Board of Councillors may by order strike off the books of the Municipality any sum due on account of the property tax or any other tax or any other account, which may appear to it to be irrecoverable and shall, within one month thereof, communicate it to the State Government.