Section 120(5) in The Madurai City Municipal Corporation Act, 1971
(5)(a)The council shall, in the case of lands used exclusively for agricultural purposes, levy property tax at such proportions as it may fix, of the annual value of such lands calculated in the manner specified in clause (b):Provided that the proportion shall not exceed the maximum, if any, fixed by the Government.(b)(i)In the case of lands held direct from Government on ryotwari tenure or on lease or licence, the assessment, lease amount, royalty or other sum payable to Government for the lands together with any water-rate which may be payable for their irrigation, shall be taken to be the annual value;(ii)In the case of lands held on any tenure other than ryotwari tenure, the annual rent payable to the landholder, sub-landholder or any other intermediate landholder holding on an under tenure 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 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 value shall be calculated according to the rates of rents usually paid by occupancy ryots for ryoti lands in the neighbourhood with similar advantages, together with any water-rate which may be payable for the irrigation of the lands so occupied;(iii)In the case of lands, the assessment of rent of which is paid in kind, the annual 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 council shall levy the taxes in equal shares, from the landholder and the tenant respectively;(d)Subject to any rules which the Government may make in this behalf, the Commissioner shall have the power to require the staff of the Land Revenue Department to collect the taxes due to the council in respect of such lands on payment of such remuneration not exceeding five per cent of the gross sum collected as the District Collector having jurisdiction over the City of Madurai may, by general or special order, determine.
