Payment of subsidies to local authorities by way of compensation.-

(1) From the proceeds of the tax collected under this Act every year, there shall be paid to each local authority which was in receipt of an income from a tax levied by it in respect of admission to entertainment under any enactment amended by section 2 during any part of the three years preceding the commencement of that section, such sum as may be determined under sub-section (2) which shall not be less than a sum equivalent to the average net annual income derived by such local authority during these three years from the tax so levied. (2) The State Government shall determine the sums which should be paid to local authorities under sub-section (1) and such determination shall be final.