(1) Subject to the general or special orders of the Government, a municipal council, -

(a) after observing the preliminary procedure required by section 95, and

(b) with the sanction of the Government and at rates not exceeding those specified in ¹ [Schedules I, III, IV, VI and VII;] may levy any one or more of the following taxes:--

(i) a tax on buildings or lands or both or lands or both situated within the ² [municipal area];

³ [(ii) x x x]

(iii) a toll on vehicles, specified in Schedule III entering the said ² [municipal area], but not liable to taxation under clause (iv);

(iv) a tax on all or any vehicles, (other than motor vehicles) boats ⁴ [x x x] specified in Scheduled IV used for riding, draught or burden, kept within the said ² [municipal area] for use;

⁴ [(v) to (vii) x x x]

(viii) a water-rate or water-rates for water supplied by the municipal council ⁵ [imposed in one or more of the following forms that is to say, in the form of a tax assessed on buildings and lands or in any other form including in the form of charges for such supply], fixed in such mode or modes as shall be best adapted to the varying circumstances of any class of cases or of any individual case;

(ix) a lighting tax;

⁶ [(x) x x x]

7 [(xi) x x x]

(xii) a duty on transfers of immovable property in the shape of an additional stamp duty;

(xiii) a tax on advertisements (other than advertisements published in newspapers) erected, exhibited, fixed or retained upon or over any land, building, wall, hoarding, frame, post or structure or upon or in any vehicle or displayed to public view in any manner whatsoever visible from a public street or public place (including any advertisement exhibited by means of cinematograph):

Explanation 1.--The word "structure" in this sub-clause includes any movable board on wheels used as an advertisement or an advertisement medium;

Explanation 2.--'public place' for the purpose of this sub-clause, means any place which is open to the use and enjoyment of the public, whether it is actually used or enjoyed by the public or not;

Explanation 3.--The word "advertisement" in this sub-clause means any word, letter, model, sign, placard, notice, device or representation, whether illuminated or not, in the nature of, and employed wholly or in part for the purpose of, advertisement, announcement or direction;

Provided that, --

(a) no tax imposed as aforesaid other than a ⁴ [x x x] water-rate shall, without the express approval of the Government, be leviable in respect of, --

(i) any building or part of any building belonging to the Central Government or any State Government and used for purposes of Government and not used or intended to be used for residential or commercial purposes;

(ii) any land belonging to the Government not used for commercial purposes;

(iii) any vehicle, ⁴ [x x x] or other property belonging to the Central Government or any State Government and used for purposes of Government and not used for commercial purposes;

(iv) any building or part of a building used as a place of public worship or used for a charitable purpose;

(b) no tax of any kind imposed as aforesaid shall be leviable in respectof the Palace in Mysore City;

⁴ [(c) x x x]

(d) the municipal council, in lieu of imposing separately any two or moreof the taxes described in clauses(i), ⁴ [x x x], (viii) and (ix), may impose a consolidated tax, assessed as a tax on buildings or lands, or both, situated within the ² [municipal area];

(e) no tax shall be levied on any advertisement which, --

(i) relates to a public meeting, or to an election to Parliament or the State Legislature or the municipal council, or to candidature in respect of such an election; or

(ii) is exhibited within the window of any building if the advertisement relates to the trade, profession or business carried on in that building; or

(iii) relates to the trade, profession or business carried on within the land or building upon or over which such advertisement is exhibited or to any sale or letting of such land or building or any effects therein or to any sale, entertainment or meeting to be held on or upon or in the same; or

(iv) relates to the name of the land or building, upon or over which the advertisement is exhibited, or to the name of the owner or occupier of such land or building; or

(v) relates to the business of a railway administration and is exhibited within any railway station or upon any wall or other property of a railway administration;

(vi) relates to any activity of the State Government.

Explanation (i).--A certificate issued by the Central Government or any State Government or any officer duly authorised by the said Government, --

(a) that any building or part of a building is used for purposes of Government and not used or intended to be used for residential or commercial purposes; or

(b) that any land is not used for commercial purposes; or

(c) that any vehicle, animal or other property is used for purposes of Government and not used for commercial purposes, shall, for purposes of clause (i), (ii) or (iii) of proviso (a), be binding on the municipal council:

Provided that the Central Government or the State Government, as the case may be, may either suo motu or on the application of the municipal council, revoke or modify any such certificate, and the certificate as modified shall be binding on the municipal council.

Explanation (ii).--The following buildings or portions of buildings shall not be deemed to be used as a place of public worship or for a charitable purpose within the meaning of clause (iv) of proviso (a), namely:--

(a) buildings or portions thereof in which any trade or business is carriedon;

(b) buildings or portions thereof in respect of which rent is derived; and

(c) buildings or portions thereof in respect of which rent is payable bythe person or persons using the same.

(2) Notwithstanding anything contained in sub-section (1), --

⁸ [(a) x x x]

(b) every municipal council shall levy such taxes ⁹ [on buildings or lands or both] under clauses(i), ⁴ [x x x], (viii) and (ix) of sub-section (1) the aggregate of which shall not be less than, --

(i) ¹⁰ [fifteen] per cent of the annual rateable value in the case of ² [town municipal councils];

(ii) ¹⁰ [twenty] per cent of the annual rateable value in the case of the ² [city municipal councils].

(3) The taxes specified in sub-section (1) shall be assessed, levied and collected in accordance with the provisions of this Act and the rules made by the Government under section 323.

_______________________________

1. Substituted by Act 21 of 1979 w.e.f. 31.3.1979.

2. Substituted by Act 36 of 1994 w.e.f. 1.6.1994.

3. Omitted by Act 21 of 1979 w.e.f. 31.3.1979.

4. Omitted by Act 36 of 1994 w.e.f. 1.6.1994.

5.Substituted by Act 33 of 1984 w.e.f. 7.4.1964.

6. Omitted by Act 83 of 1976 w.e.f. 8.12.1976.

7. Clause (xi) and proviso omitted by Act 26 of 1982 read with Act 22 of 2000 w.e.f. 27.7.1982.

8. Omitted by Act 39 of 1976 read with Act 22 of 2000 w.e.f. 1.4.1976.

9. Substituted by Act 39 of 1976 read with Act 22 of 2000 w.e.f. 1.4.1976.

10. Substituted by Act 83 of 1976 w.e.f. 8.12.1976.