(1)Subject to the provisions of this Act, the municipality shall have, for the purposes of this Act, the power to levy the following taxes:-(a)property tax on lands and buildings,(b)tax on vacant land,(c)surcharge on transfer of lands and buildings,(d)tax on deficit in parking spaces in any non-residential building,(e)water tax,(f)fire tax,(g)tax on advertisements, other than advertisements published in newspapers,(h)surcharge on entertainment tax,(i)surcharge on electricity consumption within the municipal area,(j)tax on congregations,(k)tax on pilgrims and tourists,(l)toll -(i)on roads, bridges, ferries and navigable channels; and(ii)on heavy trucks which shall be heavy goods vehicles, and buses, which shall be heavy passenger motor vehicles, within the meaning of the Motor Vehicles Act, 1988, plying on a public street;(m)Tax on Trade and Profession:Provided that where tax on profession is levied on salaried employees, it may be deducted at source by the employer and be directly remitted to the municipality.(2)Subject to the prior approval of the State Government, the municipality may, for raising revenue for discharging its duties, and performing its functions, under this Act, levy any other tax which the State Legislature has the power to levy under the Constitution of India.(3)The levy, assessment and collection of taxes under this Act shall be in accordance with the provisions of this Act and the rules and the regulations made thereunder:Provided that any person may make self-assessment and make payment of any levy or tax under this Act and rules and regulations made thereunder:Provided further that if any discrepancy or under-assessment is found in such self-assessment, such person shall be liable for payment of differential amount and a fine of not less than fifty percent and up to one hundred percent of such differential amount.(4)(i)The holdings in the municipal area shall be classified by the municipality on the following criteria:-(a)location of the holding -(i)holding on the Principal Main Road,(ii)holding on the Main Road,(iii)holding other than sub-clauses (i) and (ii)(b)use of the holding -(i)purely residential,(ii)purely commercial, i.e., shops, hotels, lodges, restaurants, godowns and other business establishments;(iii)purely industrial, i.e., factories, mills, workshops and other manufacturing units;(iv)holdings other than sub-clauses (i), (ii) and (iii)(c)Type of construction -(i)pucca building with R.C.C. R.B. Roof,(ii)pucca building with asbestos/corrugated sheet roof,(iii)other buildings not covered in sub-clauses (i) and (ii).(5)Subject to the approval of the State Government, the municipality may from time to time, publish the list of principal main roads as well as main roads and if necessary modify the lists for the purposes of this Act.(6)For the purpose of calculation of Annual Rental Value of a holding, measurement of carpet area shall be calculated as under: -(i)rooms - full measurement of internal dimension,(ii)covered verandah-full measurement of internal dimension,(iii)balcony/corridor, kitchen and store - Fifty percent measurement of internal dimension,(iv)garage -One-fourth measurement of internal dimension,(v)area covered by bathroom, latrines, portico and staircase shall not form part of the carpet area.(vi)The rate of rental value per sq. ft. shall be fixed by the municipality with the prior approval of the State Government having regard to the situation, the use and the type of construction of the holdings,(vii)The Annual Rental value shall be commuted as a multiple of the carpet area and the rental value fixed under clause (i),(viii)The rental value per sq. ft. of carpet area for different classes of holdings shall be published from time to time by the municipality with the prior approval of the State Government.(7)The following taxes shall be assessed on the basis of Annual Rental Value at such rates as prescribed by the Government from time to time :-(i)Holding Tax(ii)Water Tax(iii)Latrine Tax(iv)Tax on any other item included in Twelfth Schedule of the Constitution of India on such rate as prescribed.(8)The municipality shall revise the rate of tax on Annual Rental Value once in five years or earlier with the prior approval of the State Government.(9)If any difficulty arises in giving effect to this section or the municipality fails to comply with the provisions of this section, the Government may issue any direction.
