Section 23 in Tamil Nadu Village Panchayats (Assessment and Collection of Taxes) Rules, 1999
23. Tax on agricultural land.
(1)The tax on agricultural land as referred to in sub-section (3) of section 171 of the Act shall be leviable by the village panchayat for a specific purpose and shall decide the rate of tax, period of tax and total period to levy of such tax based on the purpose and paying capacity of the assessee: -(a)repairs to irrigation channels and tanks in respect of which no kudimaramath fee is levied under sub-section (2) of section 133 of the Act;(b)construction, maintenance, repair, extension or improvement of water works or drainage works;(c)lighting by electricity or any other means;(d)construction of a road, or a bridge or culvert;(e)protection of trees, plants and crops; or(f)raising matching contribution for any programme of development specified in panchayat development Schematic Budget or that may be included in it, from time to time, and the levy of such tax shall take effect from the first day of the half-year or the year following that in which it is sanctioned;(g)construction or maintenance of soil conservation works:Provided that, the tax for the purpose specified in clause (g) shall be leviable on such agricultural land as is benefited by the construction or maintenance of works referred to in that clause;(h)for any other purpose which will sub-serve the causes of agricultural development and improve the productivity of agricultural land.Explanation. - For the purpose of this rule, the tax on agricultural land levied by the village panchayat is in no way related to land revenue, local cess or local cess surcharge collected by the Revenue Department.(2)The rate of the tax shall be on the basis of the extent and classification of land and the source of irrigation of land as provided in the revenue record:Provided that, for the purpose of adopting different rates for different classes of lands under this sub-rule, such lands may be classified according to the number and nature of crops raised thereon or the nature of the sources of irrigation.(3)(a)Every proposal for the levy of the tax shall be submitted to the Assistant Director (Panchayats) through the Block Development Officer (Village Panchayats). The Assistant Director (Panchayats) shall forward it to the District Collector who is the sanctioning authority for the levy of tax on agricultural land;(b)Every such proposal shall be accompanied by -(i)resolution of the village panchayat passed at a meeting specially convened for the purpose and supported by not less than one-half of the sanctioned strength of the village panchayat specifying the levy of tax either half-yearly or yearly the purpose for which, the rate at which, and the total levy period for which, the tax is to be levied;(ii)a statement showing the receipts and charges under the various heads of accounts for the three years preceding the year in which the proposal is made;(iii)the budget estimate for the year in which the proposal is made;(iv)particulars of the approximate or estimated cost of the work in respect of which the tax is proposed to be levied and the amount of tax likely to be realised in a half-year or a year.(4)The rate at which and the period for which the tax to be levied shall be specified in the order sanctioning the levy of the tax. The period specified in the order may be extended, from time to time, if necessary, in order that the purpose for which the tax is levied may be fulfilled:Provided that the village panchayat may, for sufficient reason, and with the approval of the sanctioning authority, alter the rate, suspend or cancel the levy of the tax within the period so specified in the order.(5)The proceeds of the tax shall form a separate fund, earmarked for the purpose for which it is levied and a separate account shall be maintained for the transactions relating to the fund.(6)The rules relating to levy and collection of taxes on house shall apply mutatis mutandis to the assessment and collection of the tax on agricultural land.
