Chapter V TAXATION

Enumera.tion of ordinary taxes and duties.

Powers of contt<ol of Government.

Continuance of the levy of pilgrim tax.

When the council shall have determined subject to the provisions of sections 115 to 117 to levy any tax for the first time or at a new rate, the commissioner shall forthwith publish a notification in the District 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.

Nothing in this Chapter shall authorise the council to levy any tax which the State Legislature has no power to impose in the State under the Constitution: Provided that any such tax which, immediately before the commencement of the Constitution, was being lawfully levied by the council may continue to be levied until provision to the contrary is made by Parliament, by law.

1. (1) If the council by resolution determines that a property tax for general purposes shall be levied, such tax shall be levied on all buildings and lands within the City save those exempted by or under this Act or any other law.
2. (2) Save as otherwise provided in this Act, the property tax shall be levied at such percentage of the annual value of buildings, or lands which are occupied by and adjacent and appurtenant to buildings or lands, as may be fixed by the council, subject to the provisions of section 116:

Method of assessment of property tax

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 site or premises.
2. (2) The annual value of lands and buildings shall be deemed to be the 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 per cent of that portion of the annual rent which is attributable to the buildings alone, apart from their sites and the adjacent lands occupied as an appurtenance thereto; and the said deduction shall be in lieu of all allowances for repairs or on any other account whatever: Provided that-
   • (a) in the case of-
     • (i) any Central or State Government or railway building;
     • (ii) any building of a class not ordinarily let the gross annual value of which cannot, in the opinion of the commissioner be estimated, the annual value of the premises shall be deemed to be six per centum of the total of the estimated market value of the land and the estimated present cost of erecting the building after deducting for depreciation a reasonable amount which shall in no case be less than ten per centum;
   • (b) in calculating the value of any land or building, the value of any plant or machinery, on such land or in such building shall be excluded, but all fixtures including lifts and electric and other fittings which add to the convenience of the building shall be valued, subject in the case of a lift to such deduction from the valuation as may be prescribed by the council on account of the cost of repairs to maintenance of, and attendance on, such lift: Provided further that where the annual value of any land or building is attributable partly to the use of such land or building or any portion thereof for the display of any advertisement or advertisements and tax is levied under this Act in respect of such advertisement or advertisements, the annual value of such land or building for the purpose of assessing the property tax thereon shall be ascertained as if such land, building or portion is not used for the display of such advertisement or advertisements.
3. (3) The 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 erecting the building and the amount to be deducted for depreciation, shall be estimated in any case or class of cases to which clause (a) of sub-section (2) applies, and they may, by such rules, restrict or modify the application of the provisions contained in Schedule II to such case or class of cases.

The following buildings and lands shall be exempt from the property tax:-

1. (a) places set apart for public worship and either actually so used or used for no other purpose;
2. (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;
3. (c) places used for the charitable purpose of sheltering the destitute or animals, and orphanages, homes and schools for the deaf and dumb, asylum for the aged and fallen women and such similar institutions run purely on philanthropic lines as are approved by the council;
4. (d) such ancient monuments protected under the Ancient Monuments Preservation Act, 1904 (Central Act VII of 1904), and such ancient and historical monuments declared by or under the Ancient Monuments and Archaeological Sites and Remains Act, 1958 (Central Act 24 of 1958), to be of national importance and also such ancient monuments and archaeological sites and remains protected under the Tamil Nadu Ancient and Historical Monuments and Archaeological Sites and Remains Act, 1966 (Tamil Nadu Act 25 of 1966), or parts thereof as are not used as residential quarters or public offices;
5. (e) charitable hospitals and dispensaries including residential quarters attached thereto;
6. (f) such hospitals and dispensaries maintained by railway administration as may from time to time be notified by the Government but not including residential quarters attached thereto;
7. (g) burial and burning grounds included in the register kept in the municipal office under section 327;
8. (h) any building or land the annual value of which is less than one hundred rupees provided that the owner thereof is not liable to income-tax and provided further that such building or land is owned by him and the aggregate annual value of the buildings and lands owned by him is less than one hundred and nineteen rupees;
   • (i) the bed of any river or canal or any river or canal belonging to Government and which does not provide any income to Government or any Government land set apart for recreation purposes or any other Government property being neither building nor land from which in the opinion of the Government any income could not be derived, as may from time to time be notified by the Government: Provided that nothing contained in clauses (a),
9. (c) and (e), 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 the purposes referred to in the said clauses.

The rates of property tax fixed by the council may be proportionate to the value of each building or land or may advance in systematic progression with the value of the building or land, but shall in no case decrease as the value of the building or land increases. When a progressive rate has been adopted by the council, it shall prescribe the principles of classification (as that a certain sum which shall be tax free shall be deducted from the assessment of each building or land or that the progression shall be from a certain percentage in the lowest to a certain percentage in the highest class) and the precise number and limits of each class: Provided that-

1. (a) the council, may with the sanction of Government, exempt any local area, from the whole or a portion of such tax on the ground that such area is not deriving any or the full benefit from the water-supply and drainage or from the lighting system;
2. (b) in the case of any land which is not appurtenant to any building or which is occupied by or appurtenant to huts, the commissioner may assess the land or premises, as the case may be, with reference to extent in lieu of annual value and at such rates as he may himself determine subject to the maximum of rupees twenty-four for each ground of land, measuring thirty-six square metres.

The property tax on buildings and lands shall, subject to the prior payment of the land revenue, if any, made 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 such buildings or lands and belonging to the person liable to such tax.

1. (1) Where any building or land which has been vacant and unlet for thirty or more consecutive days in any half-year, the commissioner shall remit so much of the property tax as is proportionate to the number of days the building or land was vacant and unlet.
2. (2) Every claim 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.
   • (a) that the building is vacant and unlet;
     • (ii) that the building will be vacant and unlet 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 unlet, whichever is later;
     • (ii) if remission is sought in respect of the half-year succeeding that in which the notice is delivered, the commencement of the half-year or from the date on which the building became vacant and unlet, whichever is later.

Obligation of transferor and transferee to give notice of transfer

1. (1) Whenever the title of any person primarily liable to the payment of the property tax 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 commissioner.
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 notice of such transfer to the commissioner within one year from the death of the deceased.
3. (3) The notice to be given under this section shall be in such form as the commissioner 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 commissioner any document evidencing the transfer or succession.
4. (4) Every person who makes a transfer as aforesaid without giving such notice to the commissioner shall in addition to any other liability which he may incur though such neglect continue liable for the payment of the 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 affect-
   • (a) the liability of the transferee for the payment of the said tax, or
   • (b) the prior claim of the corporation under section 124.

1. (a) If any building in the City is constructed or re-constructed, the owner shall give notice thereof to the commissioner within fifteen days from the date of completion or occupation of the building whichever is earlier; or
2. (b) If such date falls within the first two months of a half-year, the owner shall, subject to notice being given under clause (a) 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. (c) If such date falls within the last four months of a half-year, the owner shall, subject to notice being given under clause (a), 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. (2)
4. (a) If any building in the City is demolished or destroyed, the owner shall, until notice is given to the commissioner, be liable for the payment of the property tax for which he would have been liable had the building not been demolished or destroyed.
5. (b) 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 payable in respect of the building only, for that half-year;
6. (c) 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 or destruction, as the case may be.

1. (1) If any area is included in the City, 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 any property tax in respect thereof for that half-year;
   • (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 the City, the owner of every building or land in such area shall be entitled-
   • (a) if the date of such exclusion falls within the first four months of a half-year, to a remission of the whole of the property tax payable 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 property tax payable in respect thereof for that half-year as is 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 commissioner within three months from the date of the exclusion of the area in which the building or land is situated.

The commissioner may at his discretion condone omissions to give notice under sections 126, 127 or 128, or any application under section 129, giving his reasons in writing for every such condonation.

1. (1) For the purpose of assessing the property tax, the commissioner may, by notice, call on the owner or occupier of any building or land to furnish him within thirty days after the service of the notice where the notice is served upon the Government, a railway administration or a company and within fifteen days after such service in other cases with returns of the rent payable for the building or land, the cost of erecting the building and the measurement of the land and with such other information as the commissioner may require, and every owner or occupier upon whom any 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 commissioner may enter, inspect, survey and measure any building or land, after giving twenty-four hours notice to the owner or occupier.

Profession tax.

Liability of members of firms, associations and joint Hindu families to profession tax.

Liability of servants or agents to profession tax.

Service of notice on failure of payment of tax.

Statements, returns, etc., to be confidential.

Requisition on owner or occupier to furnish list of persons liable to tax.

Requisition on employers or their representatives to furnish list.

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

Special exemption from profession tax.

General provisions regarding tax on carriages and animals.

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

Exemption from carriage and animal tax.

Composition.

Requisition on occupier to furnish statement of persons liable to tax.

Forms to be sent to and returned by tax-payers.

Grant of licence on payment of tax.

Power to require number to be affixed to carriages.

Registration and control of taxable carriages or animals.

General provisions regarding cart-tax.

Registration of carts.

Exemption.

Power to remit tax on cart kept for less than fifteen days or not used.

Seizure of vehicles not bearing numbers.

Procedure after seizure.

Prepayment of municipal tax condition precedent to registration under Tamil Nadu Act V of 1911

Tax on advertisements

Prohibition of advertisements without written permission of commissioner

Permission of the commissioner to become void in certain cases

Owner of person in occupation to be deemed responsible

Removal of unauthorised advertisements

Collection of tax on advertisements

Levy of pilgrim tax

Method of assessment of duty on transfers of property

Provisions applicable on the introduction of transfer duty

Power to make rules regarding collection of transfer duty

Power to exempt from taxes

Power to assess in case of escape from assessment

Application of Schedule II