Chapter VIII MUNICIPAL TAXATION

The State Government may, from time to time, by notification in the Official Gazette--

1. (a) authorize a municipality to levy, collect and appropriate such taxes, duties, tolls and fees in accordance with such procedure and subject to such limits to be prescribed by it;
2. (b) assign to a municipality such taxes, duties, tolls and fees levied and collected by the State Government for such purposes and subject to such conditions and limits to be prescribed by it;
3. (c) provide for making such grant-in-aid to the municipalities from the Consolidated Fund of the State.

1. (1) Subject to the provisions of this Chapter and with the previous approval of the State Government, municipality may, from time to time, impose in the whole or in any part of the municipality any of the following taxes and tolls, namely:--
   • (a) a tax on holding situated within the municipality assessed on their annual value, payable by the owner of the building or land or both;
   • (b) a tax on all or any of the vehicles, other than covered by the Motor Vehicles Act, 1988 (59 of 1988), or animals used for riding, driving, draught or burden and used within the limits of the municipality whether they are actually kept within or outside the said limits;
   • (c) an octroi on goods brought within the limits of the municipality for sale, consumption or use within such limits;
   • (d) a latrine-tax payable by the owners or occupiers for collections, removal and disposal of excrement or offensive matter from latrines, privies, urinals, cess-pools or compounds by the municipality, within the limits of the municipality;
   • (e) a scavenging-tax;
   • (f) lighting-tax where the lighting arrangement is made by the municipality;
   • (g) a drainage tax where a system of drainage has been introduced by the municipality;
   • (h) a tax on deeds of transfer of immovable property situated within the limits of the municipality;
     • (i) a tax on advertisements made within the limits of the municipality other than non-commercial undertaking advertisements published in newspapers;
   • (j) a water-tax where water is supplied by the municipality;
   • (k) market fees on person exposing goods for sale in any market or any place belonging to or under the control of the State Government or of the municipality;
   • (l) a betterment charge on properties the value of which may be increased as a result of town planning scheme implemented by the municipality; and
   • (m) any other tax, toll, rate, charge or fee.
2. (2) With the previous sanction of the State Government a municipality may, from time to time, charge a fee in respect of the issue and renewal of any licence which may be granted by the municipality under this Act and in respect of which no fee is leviable under sub-section (1).
3. (3) Subject to the provisions of any law that may be made by Parliament, any tax or fee which immediately before the commencement of this Act, was being lawfully levied under the Manipur Municipalities Act, 1976 (Manipur Act 26 of 1976) notwithstanding that such tax or fee is not specified in sub-section (1) shall continue to be levied by the Nagar Panchayat or, as the case may be, by the Council.
4. (4) The State Government may from time to time direct the municipality to impose any tax or to modify the rate of any tax already imposed.
5. (5) On default of the municipality to comply with the decision under sub-section (4) within three months from the receipt of the direction the municipality may be required to furnish reason as to why the tax should not be imposed or modified, as the case may be.

Notwithstanding any provisions to the contrary all municipal taxes including services charges except under clause (a) of sub-section (1) of section 75 in respect of Government holdings shall be payable to municipality by the Government Department which is in control and management of the holdings.

The State Government shall have the power to exempt by an order published in the Official Gazette any class of building or holding from levying any tax under section 75 of this Act.

All the taxes mentioned in section 75 shall be collected in the manner provided in the bye-laws.

When it has been decided to impose any tax on the annual value of holdings, the assessor after making such enquiries as may be necessary, shall determine the valuation of all holdings within the municipality as hereinafter provided, and shall enter the same in a list called the valuation list, which shall be in the prescribed form: Provided that valuation other than general valuation may be made by the municipality through such person as may be authorised by the municipality in this behalf.

The assessor, in order to prepare the valuation list, may whenever he thinks fit, by notice require the owners or occupiers of all holdings to furnish him, within fifteen days with returns of the rent or annual value thereof and a description of the holdings in such detail as the municipality may direct; and the assessor, at any time between sunrise and sunset may enter, inspect and measure any such holdings: Provided that at least forty-eight hours, previous notice of the intention to enter, inspect and measure any holding shall be given to the owner or occupier thereof, unless he waives his right to such notice.

1. (1) Whoever refuses or fails to furnish any such return for the period of fifteen days from the day on which he has been required to do so, or knowingly furnishes a false or incorrect return or description shall be punishable with fine not exceeding five hundred rupees and with further fine not exceeding fifty rupees for each day during which he omits to furnish a true and correct return.
2. (2) Whoever obstructs, hinders or prevents the assessor appointed by the municipality from entering or inspection or measuring any such holding shall be punishable with fine not exceeding two thousand rupees.

"Annual value" means--

1. (a) in the case of hotels, colleges, schools, hospitals, factories and such other buildings, a proportion not exceeding five per centum, to be fixed by rule made in this behalf of the sum obtained by adding the estimated present cost of erecting the building, less depreciation at the rate to be fixed by rule to the estimated value of the land appurtenant thereto, and
2. (b) in the case of a building or land not falling within the provisions of clause (a), the gross annual rent for which such buildings, exclusive of furniture or machinery therein or such land is actually let, or where the building or land is not let or in the opinion of the municipality is let for a sum less than its fair letting value, might reasonably be expected to let from year to year: Provided that where the annual value of any building would, by reason of exceptional circumstances, in the opinion of the municipality be excessive if calculated in the aforesaid manner, the municipality may fix the annual value at any less amount which appears to it suitable: Provided further that the rules framed in this behalf shall be subject to the prior approval of the Government.

The mode of procedure and system of tax on the land and holdings will be such as may be prescribed by the rules to be framed by Government from time to time in this behalf.

As soon as possible after the percentage at which the tax is to be levied shall have been determined under section 83, the municipality shall cause to be prepared an assessment register which shall contain the following particulars, and any other matters which the municipality may think proper to include--

1. (a) number of the holding on the register with the name of the road, if any, in which the holding is situated;
2. (b) annual value of the holding (as stated in the valuation list);
3. (c) names of owner and occupier;
4. (d) amount of tax payable for the financial year;
5. (e) amount of taxes payable separately under clause (a), (d), (f) or (j) of sub-section (1) of section 75;
6. (f) amounts of quarterly instalments; and
7. (g) if the holding is exempted from assessment, a note to that effect.

1. (1) If any building belongs to one owner and the land on which it stands and any adjacent land which is usually occupied therewith belongs to another the municipality may value such building and land together and may impose thereon one consolidated tax.
2. (2) The total amount of the tax shall be payable by the owners of the building, who shall thereafter be entitled to deduct from the rent which he pays for the land such proportion of the tax so paid by him as is equal to the proportion which such rent bears to the annual value of the holdings.
3. (3) In case of disputes, the municipality shall determine what amount the owner of the building and of the land shall pay respectively.

1. (1) The municipality may, at any time, direct an alteration in, or amendment of the assessment register--
   • (a) by entering therein the name of any person or any property which in its opinion ought to have been entered, or any property which has become liable to taxation after the preparation of the assessment register, or
   • (b) by substituting therein with effect from the date of succession or transfer, as the case may be, for the name of the owner of any holding the name of any other person who has succeeded by transfer or otherwise, to the ownership of the holding, or
   • (c) by altering the valuation of or assessment on any holding which in its opinion has been incorrectly valued or assessed, or
   • (d) by re-valuing or re-assessing any holding the value of which has been increased by additions or alterations to buildings, or
   • (e) by reducing, upon the application of the owner the valuation of any holding which has been wholly or partly demolished or destroyed, or the value of which has diminished from any cause beyond the control of the owner, or
   • (f) by correcting any clerical or arithmetical error.
2. (2) The municipality shall give at least one month's notice to any person interested in any alteration which the municipality proposes to make under clause (a), (b), (c) or (d) of sub-section (1).
3. (3) Every alteration made under sub-section (1) in the assessment register shall be signed by the Chairperson or the Vice-Chairperson.

1. (1) Whenever the title to any holding is transferred both the transferor and the transferee shall for the purpose of clause (b) of sub-section (1) of section 86 within three months after the execution of the instrument of transfer, or if no such instrument is executed, within three months after the transfer is effected, give notice in writing of such transfer to the municipality.
2. (2) in the event of the death of the person in whom such title vests, the person to whom as heir or otherwise, the title of the deceased is transferred by descent or demise, shall within one year, from the death of the deceased, give notice in writing of such succession to the municipality.
3. (3) Every person liable for the payment of taxes on any holding, who transfers his title to or over such property, without giving notice of such transfer to the municipality, as aforesaid, shall unless the municipality on the ground of hardship arising out of special circumstances, otherwise directs, continue to be 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 municipal books.
4. (4) The municipality may levy a fee not exceeding one hundred rupees for every such transfer of title to a holding in addition to the tax provided for in clause (a) of sub-section (1) of section 75.

1. (1) A new valuation list shall, unless otherwise ordered by the State Government, be prepared in the same manner as the original list, once in every five years.
2. (2) Subject to any alteration or amendment made under section 86 and to the result of any application made under section 95 every valuation list or the assessment register shall be valid from the date on which the list or register takes effect in the municipality.

1. (1) The municipality, for the purpose of general valuation may, with the concurrence of the Government, appoint an assessor who shall neither be an employee nor a Councillor of the municipality on such pay and with such establishment as it may determine.
2. (2) Notwithstanding anything contained in section 88 if at any time it appears to the State Government that the valuation in any municipality is insufficient, excessive or inequitable, the State Government may, by an order in writing, require the municipality to revise the valuation or to show cause against revision within a specified time, and if the municipality fails to comply with the order or in the opinion of the Government the cause shown is inadequate, the State Government may by an order in writing require the municipality to appoint with the approval of the State Government an assessor for the municipality within a time and for a period to be specified in the order. The order shall fix the pay of the assessor and the cost of his establishment, and the pay and cost shall be paid monthly by the municipality.

Whenever the valuation list is revised or altered wholly or in part or a new percentage is fixed under section 83 the assessment register also shall be revised and all consequential changes, made therein.

The first assessment register prepared for any municipality under the Act and any revision thereof or alteration therein made under the foregoing section shall subject to the provision of sections 86 and 96 take effect, from the beginning of the quarter following the publication of the notice mentioned in sections 96.

1. (1) The taxes mentioned in clauses (a), (g) and (l) of sub-section (1) of section 75 shall not be assessed or levied on any building which is used exclusively as a place of public worship, or on any holding which is duly registered as a public burial or burning ground under this Act.
2. (2) The municipality may exempt from assessment of the tax mentioned in clause (a) of sub-section (1) of section 75 on any holding used for the purpose of a public charity.
3. (3) The municipality may reduce the amount payable on account of any of the taxes mentioned in clauses (a), (b), (f) and (i) of sub-section (1) of section 75 or remit the same on the ground of excessive hardship to the person liable to pay the same: Provided that such reduction or remission shall not, unless renewed by the municipality, have effect for more than one financial year.

An assessor appointed by the municipality under section 89 shall exercise all such powers of valuation as may be vested in him by the municipality or as may be prescribed.

1. (1) When the valuation list mentioned in section 79 and the assessment register mentioned in section 84 shall have been prepared or revised the Chairperson shall sign the same and shall cause them to be deposited in the office of the Nagar Panchayat or as the case may be, of the Council, and shall cause a notice to be published in such form and manner as may be prescribed.
2. (2) In all cases in which any property is for the first time assessed or the assessment is increased, the Executive Officer shall also give notice thereof to the owner or occupier of the property.

1. (1) Any person who is dissatisfied with the amount assessed upon him or with the valuation or assessment of any holding or who disputes his occupation of any holding or his liability to be assessed, may apply to the municipality to review the amount of assessment of valuation or to exempt him from the assessment of tax: Provided that no application shall be entertained unless the applicant has paid all arrears of dues to the municipality accorded up to the date of such application other than the sum which has been enhanced by the valuation or assessment against which the review application has been filed.
2. (2) When an assessor has been appointed under section 89 notice of every such application shall be given by the municipality to the assessor.

1. (1) Every application presented under section 95 shall be heard and determined by a Committee consisting of not more than five members.
2. (2) The Chairperson or the Vice-Chairperson shall be one of the members of such committee ex officio, and the other members shall be appointed from among the Councillors by the Nagar Panchayat or, as the case may be, by the Council: Provided that no member so appointed shall take part in hearing or determining any application from the ward in which he resides, or in the case of an elected member the ward which he represents, but nothing in this proviso, shall prevent any such member from giving evidence with regard to the matter under enquiry.
3. (3) No such application shall be heard or determined by the committee unless at least three members including the Chairperson or the Vice-Chairperson are present.
4. (4) The committee shall give notice to the applicant of the time and place at which application shall be heard, and after taking such evidence and making such enquiries as may be deemed necessary in the presence of the objector or his agent, if he appears the committee shall pass such orders as it may deem fit in respect of such application.
5. (5) If the committee orders that any valuation to which the application relates shall be reduced, brief reasons for such reduction shall be recorded.
6. (6) The decision of the committee or of a majority of the members thereof, in respect of any application referred to in this section shall be final.

Unless good cause shall be shown to the satisfaction of the committee referred to in section 96 for extending the time allowed, and save as is otherwise expressly provided in this Act, no such application shall be received after the expiry of one month from the date of publication of the notice required by section 94 relating to the list or register containing the assessment, in respect of which the application is made, or after the expiry of fifteen days from the date of service of the first notice of demand for payment at the rate in respect of which the application is made whichever period shall last expire: Provided that, if the municipality has served a notice under section 94 on any person, no such application shall be received from him after the expiry of fifteen days from the date of such service.

No objection shall be taken to any assessment or valuation in any other manner than is provided in this Act.

No assessment of tax on property and no charge or demand of any tax made under authority of this Act shall be invalid for error, defect in form, and it shall be enough in any valuation or assessment for purpose if the property so valued or assessed is so described as to be generally known and it shall not be necessary to name the owner or occupier thereof.

The various procedure that may be prescribed by the Government from time to time will be followed for imposing and recovery of tax, tolls, fees and rates under this Act.