Resolution of council determining to levy tax

Any resolution of a municipal council 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 council shall publish a notice in at least one newspaper, published in the language of the locality having circulation in the municipality, on the notice-board of the municipal office and in such other places within municipal limits as may be specified by the council and by beat of drum, of its intention, fix a reasonable period not being less than one month for submission of objections or suggestions and consider the objections or suggestions, if any, received within the period specified:

Provided further that any resolution abolishing an existing tax or reducing the rate at which a tax is levied shall be immediately reported to the Government and in municipalities which have an outstanding loan either from Government or from the public or any other local authority, such abolition or reduction shall not be carried into effect without the previous sanction of the Government:

This clause has come into force with effect from 16.5.2002 vide Act No.9 of 2002 published in the Extraordinary Gazette Part II No.27 dated 22.5.2002.

Provided also that, where any resolution under this section has taken effect for a particular half-year, no proposals to alter the rates or date fixed in such resolution so far as that half-year is concerned shall, without the sanction of or direction from the Government, be taken into consideration by the council.

• • 120. Notification of new taxes.- When a municipal council shall have determined subject to the provision of section 118 to levy and tax for the first time or at a new rate the Commissioner shall forthwith publish a notification in the official gazette and by beat of drum specifying the rate at which, the date from which and the period, if any, for which, such tax shall, be levied. The property tax
• • 121. Description and classes of property tax.- (1) If the council 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 --

1. (a) a tax for general purposes;
2. (b) a water and drainage tax to provide for expenses connected with the construction, maintenance, repairs, extension or improvement of water or drainage works heretofore provided or hereafter to be provided;
3. (c) a lighting tax to provide for expenses connected with the lighting of the municipality by gas or electricity; and
4. (d) a scavenging tax to provide for expenses connected with removal of rubbish, filth or the carcasses of animals from private premises and cleaning of latrines and cess-pools therein: 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 120.

1. (2) Save as otherwise provided in this Act, and subject to the provisions of section 118 and in accordance with the rules made by the Government in this behalf, these taxes shall be levied at such percentages of the annual value of buildings, or lands which are occupied by, or adjacent and appurtenant to, building or both, as may be fixed by the municipal council: Provided that the aggregate of such percentages shall not exceed thirty per cent of the annual value of lands and buildings.
2. (3) (i) The municipal council shall, in the case of lands which are not used exclusively for agricultural purposes and are not occupied by, or adjacent and appurtenant to, buildings, levy these taxes at such percentage of the capital value of such lands not exceeding six per cent of such capital value or at such rates with reference to the extent of such lands as it may fix.
   • (ii) The capital value of such lands shall be determined in such manner as may be prescribed.
3. (4) (a) The municipal council shall, in the case of lands used exclusively for agricultural purposes, levy these taxes at such proportions as it may fix, of the annual value of such lands as calculated in the manner specified in clause (b).
   • (b) (i) In the case of lands held direct from Government on lease or licence, the assessment, lease amount, royalty or other sum payable to the Government for the lands together with any water rate which may be payable for their irrigation, shall be taken to be the annual rent value.
     • (ii) In the case of lands held wholly or partially free from assessment, the full assessment which such lands would bear, together with any water-rate which may be payable for their irrigation, shall be taken to be the annual rental value; and such full assessment and water-rate shall be determined by the Government.
     • (iii) In the case of lands held on any other tenure, the annual rent payable to the landholder, sub-landholder or any other intermediate landholder, holding on an undertenure, created, continued or recognized by a landholder or sub-landholder, as the case may be, by his tenants, together with any water-rate which may be payable for their irrigation, shall be taken to be the annual rental value; and where such lands are occupied by the owner himself or by any person holding the same from him free of rent or at a favourable rent the annual rental value shall be calculated according to the rates of rent usually paid by occupancy ryots for ryoti lands in the neighbourhood with similar advantage together with any water-rate which may be payable for the irrigation of the lands so occupied.
     • (iv) In the case of lands, the assessment of rent of which is paid in kind, the annual rental value shall be calculated according to the rates of rent established or paid for neighbouring lands of a similar description and quality together with any water-rate which may be payable for the irrigation of the lands first mentioned.
   • (c) If such lands be occupied by tenants, the municipal council shall levy the taxes in equal shares, from the landlord and the tenant respectively.
   • (d) Subject to any rules which the Government may make in this behalf, the Commissioner shall have power to require the staff of the Revenue Department to collect the taxes due to the municipal council in respect of such lands on payment of such remuneration not exceeding five per centum of the gross sum collected as the Government may, by general or special order, determine. *122. Appointment of authorised valuation officer.- (1) The Government may, by notification,
   • (a) appoint such officers including those of Revenue and Public Works Departments of the Government to be authorised valuation officers for the purposes of this Act; and
   • (b) define the municipal area within which such officers shall exercise the powers conferred and perform the duties imposed upon them by or under this Act.
4. (2) Each council shall every year pay to the Government such sum out of its revenue for the services rendered or to be rendered in that year by any authorised valuation officer or officers for its purposes, as the Government may, by general or special order, determine.
5. (3) Till such time as an authorised valuation officer is appointed for any municipal area, the powers conferred and duties imposed by or under this Act on such officer shall in that area be exercised and performed by the Commissioner.