Chapter V Chapter V

(1) Subject to any general or special orders which the State Government may make in this behalf, and to the rules, any committee may, from time to time for the purposes of this Act, and in the manner directed by this Act, impose in the whole or any part of the municipality any of the following taxes, namely : (a) A tax payable by the owner of building and lands not exceeding fifteen per cent of the annual value. (1) ... Provided that in the case of lands and buildings occupied by tenants in perpeuity, the tax shall be payable by such tenants ; (b) a tax on persons practising any profession or art or carrying on any trade or calling in the municipality; Explanation:- A person in the service of the Government or person holding an office under the State Government or the Central Government or a local or other public authority shall be deemed to be practising a profession within the meaning of this sub-clause. (c) a tax payable by the owner, on all or any vehicles other than motor vehicles animals used for riding, draught or burden, and dogs, when such vehicles, animals used as aforesaid, and dogs are kept within the municipality; (d) a tax, payable by the employer, on menial domestic servants; (e) a tax, payable by the occupier of any buildings in respect of which the committee has, in exercise of the powers conferred by sections 159 to 165 of this Act, undertaken the house scavenging; (ee) in addition to the tax imposed under clause (a), scavenging tax, payable by the occupier, on buildings and lands of such percentage of the annual value thereof as the State Government may, by notification, declare to be reasonable for providing for the collection, removal and disposal by the committee of all filth and polluted and obnoxious matter from latrines, urinals, cess-pools and for efficiently maintaining and repairing the municipal drains constructed or used for the reception or conveyance of such filth or polluted and obnoxious matters : (f) a tax payable by persons presenting building applications to the committee: Provided that a committee shall not impose any tax without the previous sanction of the State Government when- (i) it consists of members less than three-fourths of whom have been elected; or (ii) its cash balances have, at any time within the three months preceding the date of the passing of the resolution imposing the tax, fallen below Rs. 20,000 or one-tenth of th income accrued in the previous financial year whichever amount shall be less. (2) Save as provided in the foregoing clause, with the previous sanction of the State Government any other tax which State Legislature has power to impose in the State under the Constitution. (2-A) Notwithstanding anything contained in this Act, on and with effect from the commencement of the Punjab Municipal (Amendment) Act, 2006, no octroi shall be levied, except on electricity, petrol and diesel : Provided that the additional excise duty, levied in lieu of octroi on liquor under any other provision of law, shall continue to be levied. (3) -- Nothing in this section shall authorise the imposition of any tax which the State Legislature has no power to impose in the State under the Constitution Provided that a committee which immediately before the commencement of Constitution was lawfully levying any such tax under this section as then in force, may continue to levy that tax until provision to the contrary is made by Parliament Explanation :- In this section "tax" includes any duty, cess or fee.

Procedure to impose taxes. (1) A committee may, at a special meeting pass a resolution to propose the imposition of any tax under section 61. (2) When such a resolution has been passed the committee shall publish a notice, defining the class of persons or description of property proposed to be taxed, the amount or rate of the tax to be imposed, and the system of assessment to be adopted. (3) Any inhabitant objecting to the proposed tax may, within thirty days from the publication of the said notice, submit his objection in writing to the committee; and the committee shall at a special meeting take his objection into consideration. (4) If the committee decides to amend its proposals or any of them, it shall publish amended proposals along with a notice indicating that they are modification of those previously published for objection. (5) Any objections which may within thirty days be received to the amended proposals shall be dealt with in the manner prescribed in sub-section (3). (6) When the committee has finally settled its proposals it shall, if the proposed tax falls under clauses (b) to (f) of sub-section (1) of section 61 direct that the tax be imposed, and shall forward a copy of its order to the effect through the Deputy-Commissioner, to the State Government and if the proposed tax falls under any other provision it shall submit its proposals together with the objection if any made in connection therewith to the Deputy Commissioner. (7) If the proposed tax falls under clause (a) sub-section (1) of section 61, the Deputy Commissioner, after considering the objections received under sections (3) and (5) may either refuse to sanction the proposals or return them to the committee for further consideration, or sanction them without modification or with such modification not involving an increase of the amount to be imposed, as he deems fit, forwarding to the State Government a copy of the proposals and his order of sanction; and if the tax falls under sub-section (2) -- of section 61, the Deputy Commissioner shall submit the proposals and objections with his recommendations to the State Government. (8) The State Government on receiving proposals for taxation under sub section (2) -- may sanction or refuse to sanction the same or return them to the committee for further consideration. (9) -- (10) (a) When a copy of order under sub-sections (6) and (7) has been received, or (b) when a proposal has been sanctioned under sub-section (8) -- the State Government shall notify the imposition of the tax in accordance with such order or proposal, and shall in the notification specify a date not less than one month from the date of notification, on which the tax shall come into force. (11) A tax leviable by the year shall come into force on the first day of January or on the first day of April or on the first day of July, or on the first day of October in any year, and if it comes into force on any other than the first day of the year by which it is leviable shall be levisble by the quarter till the first day of such year then next ensuing. (12) A notification of the imposition of a tax under this Act shall be conclusive evidence that the tax has been imposed in accordance with the provisions of the Act.

63. Preparation of assessment list :- The committee shall cause an assessment list of all buildings and lands on which any tax is imposed to be prepared, containing.-(a) the name of the street or division in which the property is situated;(b) designation of the property, either by name or by number sufficient for identification;(c) the names of the owner and occupier, if known;(d) the annual value; and(e) the amount of the tax assessed thereon by the committee.

64. Publication and completion of assessment list :- When the assessment list has been completed, the committee 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 authorised agent of such person shall be at liberty to inspect the list and to make extracts therefrom without charge.

65. Public notice of time fixed for revising assessment list :- (1) The committee shall at the time of the publication of such assessment list give public notice of a time, not less than one month thereafter, when it will proceed to revise the valuation and assessment; and in all cases in which any property is for the first time assessed, or the assessment thereof is increased, it shall also give notice thereof to the owner or occupier of the property.(2) All objections to the valuation and assessment shall be made in writing before the time fixed in the notice, or orally or in writing at that time.

66. Settlement of lists:- (1) After the objections have been enquired into and the persons making them have been allowed an opportunity of being heard either in person or by authorised agents, as they may think fit, and the revision of the valuation and assessments has been completed, the amendments made in the list shall be authenticated by the signatures of atleast two members of the committee, who shall at the same time certify that no valid objection has been made to the evaluation and assessment contained in the list, except in the cases in which amendments have been entered therein and subject to such amendments as may thereafter be duly made, the tax so assessed shall be deemed to be the tax for the year commencing on the first day of April of the year in which notice was issued under section 64 or section 65 of the Act : Provided that this date will not be earlier to the date on which the building came into existence.(2) The list when amended under this section shall be deposited in the committee’s office and shall there be open during office hours to all owners or occupiers of property comprised therein or the authorised agents of such persons, and a public notice that it is so open shall forthwith be published.

67. Further amendments of Assessment list:- (1) The committee may at any time amend the list by inserting the name of any person whose name ought to have been or ought to be inserted, or by inserting any property which ought to have been or ought to be inserted, or by altering the assessment on any property which has been erroneously valued or assessed through fraud, accident or mistake, whether on the part of the committee or of the assessee, or in the case of tax payable by the occupier by a change in the tenancy, after giving notice to any person affected by the amendment, of a time, not less than one month from the date of service at which the amendment is to be made.(2) Any person interested in any such amendment may tender his objection to the committee in writing before the time, fixed in the notice or orally or in writing at that time, and shall be allowed an opportunity of being heard in support of the same in person or by authorized agent, as he may think fit.(3) Notwithstanding anything contained in this Act, the Committee may with a view to give effect to the annual value as modified by the Punjab Municipal (Amendment) Act 11, 1994, amend the assessment list of the year commencing on the first day of April of the relevant year for increasing or reducing annual value of any property and of the assessment thereupon after giving notice at any time to any person affected by the amendment of a period not less than one month from the date of service at which the amendment is to be made and the Committee shall consider any objection made in this regard by any such person and the amended assessment list shall come into force with effect from the first day of April of the year in which notice was given to the person affected.

68. Preparation of new assessment list:- (1) Where the assessment of land or building has been made on the basis of the annual value as specified in clause (i) of section 3, the assessment list will be valid for a period of five years and after the expiry of the period of five years, the annual value may be determined at the option of the owner either in accordance with the method specified in sub- clause (b) of clause (i) of section 3 or by increasing it by ten per cent of the annual value already fixed.(2) In the case of land or building which is occupied by the tenant, the annual value may be revised when revision in the rent is made : Provided that where no revision in rent is made and a period of five years has elapsed since the date of the previous assessment, the annual value may be enhanced for reasons to be recorded in writing and after hearing the landlord.

69. Tax not invalid for defect of form:- No assessment and no charge of demand of any tax made under the authority of this Act shall be impeached or affected by reason of any mistake in the name, residence, place of business or occupation of any person liable to pay the tax, or in the description of any property or thing liable to the tax, or of any mistake in the amount of assessment or tax, or by reason of any clerical error or other defect of form; and it shall be enough in any such tax on property or any assessment of value for the purpose of any such tax if the property taxed or assessed is so described as to be generally known; and it shall not be necessary to name the owner or occupier thereof.

70. Power of the Committee in regard to taxes :- (1) A committee may exempt, in whole or in part, for any period not exceeding one year from the payment of any such tax, any person who by reason of poverty may in its opinion be unable to pay the same, and may renew such exemption as often as may be necessary.(2) A committee, by a resolution passed at a special meeting and confirmed by the State Government, may -(a) provide that all or any persons may be allowed to compound for taxes imposed under sub-clauses (c), (d) and (e) of clause (1) and under clauses (2) and (3)] of section 61;(b) abolish, suspend or reduce in amount any tax imposed under the foregoing sections;

Powers of the State Government in regard to taxes. (1) The State Government may by order exempt in whole or in part from the payment of any such tax any person or class of persons or any property description of property. If at any time it appears to the State Government on complaint made or otherwise, that any tax imposed under the foregoing sections is unfair in its incidence or that the levy thereof or of any part thereof is injurious to the interests of the general public, it may require the committee to take within a specified period measures to remove the objection : and, if within that period the requirement is not complied with to the satisfaction of the State Government the State Government may by notification suspend the levy of the tax or of such part thereof until the objection has been removed.

(1) When any property assessed to a tax under sub-clause(a) of clause (1) of section 61, which is payable by the year or by instalments, has remained unoccupied and unproductive of rent throughout the year or the period in respect of which any instalment is payable, the committee shall remit the amount of the tax or of the instalment, as the case may be : Provided that no such remission shall be granted unless, notice in writing of the circumstances under which it is claimed has been given to the committee within the first month after the expiry of the period in respect of which it is so claimed. (2) When any such property as aforesaid - (a) has not been occupied or productive of rent for any period of not less than sixty consecutive days, or (b) consists of separate tenements, one or more of which has or have not been occupied or productive of rent for any such period as aforesaid; or (c) is wholly or in greater part demolished or destroyed by fire or otherwise; the committee may remit such portion (if any) of the tax or instalment as it may think equitable. (3) The burden of proving the facts entitling any person to claim relief under this section shall lie upon him. (4) For the purposes of this section neither the presence of a care-taker nor the mere retention in an otherwise unoccupied dwelling house of the furniture habitually used in it shall constitute occupation of the house. (5) For the purposes of this section a house shall be deemed to be productive of rent if let to a tenant who has a continuing right of occupation thereof, whether it is actually occupied by such tenant or not. (6) The enquiry necessary for a decision whether any relief shall be granted under this section shall be held by the Executive Officer who shall make such recommendation to the committee as he may deem proper : Provided that the committee shall not grant any remission of tax unless such remission is recommended by the Executive Officer.

Duty of furnishing true information regarding liability to municipal taxation. (1) Every person shall on the demand of an officer duly authorised by the committee in this behalf furnish such information as may be necessary in order to ascertain whether such person is liable to pay any municipal tax; and every hotel or lodging house keeper or secretary of a residential club shall also on demand made as aforesaid furnish a list of all persons residing in such hotel, lodging-house or club. (2) If any person so called upon to furnish such information omits to so or furnishes information which is untrue, he shall be punishable with fine which may extend to one hundred rupees. (3) It would be obligatory for the owner to inform the committee about rent being charged from the tenant and also about the increase in the rent by filing a statement in the manner prescribed. (4) In the event of the owner not giving the information as required under sub-section (3), the owner shall be liable to pay a penalty which may extend to the amount of the tax payable on land or building under sub-section (1) of section 61 of this Act.

Notice to be given to the committee of all transfers of title of person primarily liable to payment of property tax. (1) whenever the title to or over any building or land of any person primarily liable for the payment of property taxes on such property is transferred the transferor and the transferee shall within three months of the registration of the deed of transfer if it be registered, or if it be not registered within three months of its execution, or if no instrument be executed of the actual transfer give notice in writing of such transfer to the committee. (2) Every person primarily 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 committee as aforesaid, shall, in addition to any other liability which he incurs through such neglect, continue liable for the payment of all such taxes from time to time payable in respect of the said property until he gives such notice, or until the transfer shall have been recorded in the committee’s books. (3) Wherever the title to or over any building or land has developed upon any person by inheritance, the heir shall within three months of the date of the death of the former owner give notice in writing of such inheritance to the committee. (4) But nothing in this section shall be held to diminish the liability of the transferee or heir for the said taxes or to affect the prior claim of the committee for the recovery of the taxes due thereupon. (5) Whoever contravenes the provisions of sub-sections (1) and (3) shall, in addition to any other penalty which he incurs through such neglect, be punishable with fine which may extend to fifty rupee; and, in the case of a continuing breach, with a further fine which may extend to five rupees for every day after the first during which the breach continues.

Power of entry for the purposes of valuation or taxation. The committee may authorize any person:- (a) after giving twenty-four hours’ notice to the occupier, or, if there be no occupier, to the owner, of any building or land, at any time between sunrise and sunset, to enter, inspect and measure any building for the purpose of valuation; (b) to enter and inspect any stable, coach-house or other place wherein therefore is reason to believe that there is any vehicle or animal liable to taxation under this Act or for which a licence has not been duly taken out.

Power of examine article liable to octroi. Every person bringing or receiving with the octroi or terminal limits of any municipality any article on which octroi or terminal tax is payable shall when required by an officer duly authorized by the State Government or the Committee in this behalf and so far as may be necessary for ascertaining the amount of tax chargeable:- (a) permit that officer to inspect, examine, weigh and otherwise deal with the article, and (b) communicate to that officer any information and exhibit to him any bill, invoice or document of like nature which he may possess relating to the article.

Power to search where octroi is leviable. (1) If any person, bringing or receiving conveyance or package within the octroi or terminal tax limits of a municipality on which octroi or terminal tax is or is believed to be leviable, shall refuse, on the demand of an officer authorized by the State Government or the committee in this behalf, to permit the officer to inspect, weigh or otherwise examine the contents of the conveyance or package for the purpose of ascertaining whether it contains any articles in respect of which octroi or terminal tax is payable or shall refuse to communicate to tht officer any information and exhibit to him any bill, invoice or document of a like nature which he may possess relating to the article, or with the intention of defrauding the committee or a lessee under section 83 shall communicate any such information which is false or exhibit any such bill, invoice or document of a like nature which is false, forged or fraudulent he shall be punishable with a fine which may extend to fifty rupees. (2) Any such person may demand that the conveyance or package or both as the case (3) Without prejudice to the provisions of sub-section (1) in case of non-payment of any octroi on demand, the officer referred to in section 76 may seize any article on which the octroi is chargeable to satisfy the demand. (4) The committee or an officer authorised by it in this behalf may after the lapse of five days from the seizure and after the issue of proclamation fixing the time and place of sale, cause any property so seized, or so much thereof as may be necessary to be sold by auction to satisfy the demand including the amount of penalty with the expenses occasioned by the seizure custody and sale thereof, unless the demand including the amount of penalty and expenses are in the meantime paid: Provided that by order of the officer authorised by the committee in this behalf, articles of a perishable nature which cannot be kept for five days without serious risk of damage may be sold after the lapse of such shorter time as he may, having regard to the nature of the articles, think proper

Power to fix octroi or terminal tax limits and penalty for evasion of octroi or terminal tax. If animals or articles passing the octroi or terminal tax boundary of municipality are liable to the payment of octroi terminal tax then every person who causes or abets the introduction of or himself introduces or attempts to introduce within the said octroi or terminal tax boundary, any such animals or articles upon which payment of the octroi or terminal tax due on such introduction has neither been made nor tendered, shall be punishable with fine which may extend either to twenty times the value of such octroi or terminal tax or to fifty rupees, whichever may be greater.

Taxes when payable. Subject to provisions of sections 62(7) and (8) and 66 any tax imposed under this chapter and payable periodically shall be payable on such dates and in such instalments (if any) as the committee, with the previous sanction of the Deputy Commissioner may from time to time direct.

Recovery of taxes payable by owner. (1) When any sum is due on account of a tax payable under this Act in respect of any property by the owner thereof the committee shall cause a bill for the amount, stating the property and the period for which the charge is made to be delivered to the person able to pay the same. (2) If the bill be not paid within ten days from the delivery thereof the committee may cause a notice of demand to be served on the person liable to pay the same, and if he does within seven days from the service of the notice, pay the sum due, with any fee leviable for the notice, or show sufficient cause for non-payment the sum due with the fee shall be deemed to be an arrears of tax. (3) Any sum due or the amount of tax payable under this Act shall, subject to any claim on behalf of Government be a first charge on the property, in respect of which it is payable, and shall be recoverable; on application made in this behalf by the committee to the Collector, as if the property were an estate assessed to land revenue and the arrears were an arrears of such revenue due thereon; Provided that nothing in this sub-section shall authorise the arrest of a defaulter. (4) If any tax or sum leviable under this Act from the owner is recovered from the occupier, 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 the rent then or thereafter due by him to the owner.

Recovery of taxes, etc. (1) Any arrears of any tax, water- rate, rent, fee or any other money claimable by a committee under this Act may be recovered on application to a Magistrate having jurisdiction within the limits of the municipality, or in any other place where the person from whom the money is claimable may for the time being be resident, by the distress and sale of any movable property within the limits of his jurisdiction belonging to such person. The cost of such proceedings shall be recoverable from the defaulter in the same manner as the said arrears. (2) An application made under sub-section (1) shall be in writing and shall be signed by the president, a vice-president or the secretary of the committee, but it shall not be necessary to present it in person.

Recovery of octroi and tools. (1) In case of non-payment of any octroi or terminal tax or of any toll on demand, the officer empowered to collect there same may seize any articles on which the octroi or terminal tax is chargeable or any vehicle or animal on which the toll is chargeable, or any part of its burden of sufficient value to satisfy the demand. (2) The committee after the lapse of five days from the seizure, and after the issue of a proclamation fixing the time and place of sale, may cause any property to seized, or so much thereof, as may be necessary to be sold by auction to satisfy the demand with the expenses occasioned by the seizure, custody and sale thereof, unless the demand and expenses are in the meantime paid : Provided that, by order of the president or a vice-president article of a perishable nature which could not be kept for five days without serious risk of damage may be sold after the lapse of such shorter time as he may, having regard to the nature of the articles, think proper.

Powers to lease the collection of octroi or tolls.

Appeals against Taxation. (1) An appeal against the assessment or levy of any or against the refusal to refund any tax under this Act shall lie to the Deputy Commissioner or to such other officer as may be empowered by the State Government in this behalf : Provided that, when the Deputy Commissioner or such other officer as aforesaid is, or was when the tax was imposed, a member of the committee, the appeal shall lie to the State Government. (2) If, on the hearing of an appeal under the section, any question as to the liability to, or the principle of assessment of, a tax arises on which the officer hearing the appeal entertains reasonable doubt, he may, either of his own motion or on the application of any person interested, draw up a statement of the facts of the case and the point on which doubt is entertained, and refer the statement with his own opinion on the point for the decision of the High Court. (3) On a reference being made under sub-section (2), the subsequent proceedings in this case shall be, as nearly as may be, in conformity with the rules relating to references to the High Court contained in section 113 and Order XLVI of the Code of Civil Procedure. (4) In every appeal the costs shall be in the discretion of the officer deciding the appeal. (5) Costs awarded under this section in to the Committee shall be recoverable by the committee as though they were arrears of a tax due from the appellant. (6) If the committee fail to pay any costs awarded to an appellant within ten days after the date of the order for payment thereof, the officer awarding the costs may order the person having the custody of the balance of the municipal fund to pay the amount.

Limitation of appeal. (1) No appeal shall lie in respect of a tax on any land or building unless it is preferred within one month after the publication of the notice prescribed by section 66 or section 68, or after the date of any final order under section 61, as the case may be and no appeal shall lie in respect of any other tax unless it is preferred within one month from the time when the demand for the tax is made: Provided that an appeal may be admitted after the expiration of the period prescribed therefor by this section if the appellant satisfied the officer before whom the appeal is preferred that he had sufficient cause for not presenting the appeal within that period. (2) No appeal shall be entertained unless the appellant has paid all municipal taxes due from him to the committee upto the date of such appeal.

Taxation not to be questioned except under this Act. (1) No objection shall be taken to any valuation or assessment, nor shall the liability of any person to be assessed or taxed be questioned, in any other manner or by any other authority than is provided in this Act. (2) No refund of any tax shall be claimable by any person otherwise than in accordance with the provisions of this Act and the rules thereunder.