MUNICIPAL TAXATION
74. Power to impose taxes by and the funds of the municipalities.—The State Government may,
from time to time, by notification in the Official Gazette—
(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;
(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;
(c) provide for making such grant-in-aid to the municipalities from the Consolidated Fund of the
State.
75. Taxes which may be imposed.—(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;
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(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) 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) 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) 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) 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.
76. Tax on Government holdings.—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.
77. Restriction regarding tax on holding.—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.
78. Collection of taxes are subject to bye-law, etc.—All the taxes mentioned in section 75 shall be
collected in the manner provided in the bye-laws.
79. Nagar Panchayat or Council to determine the valuation of holding.—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.
80. Returns required for ascertaining annual value.—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:
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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.
81. Penalty for default in furnishing return and for obstruction of assessor.—(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) 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.
82. Determination of annual value of holdings.—“Annual value” means—
(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
(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.
83. Determination of rate of tax on holding.—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.
84. Preparation of assessment register.—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—
(a) number of the holding on the register with the name of the road, if any, in which the holding is
situated;
(b) annual value of the holding (as stated in the valuation list);
(c) names of owner and occupier;
(d) amount of tax payable for the financial year;
(e) amount of taxes payable separately under clause (a), (d), (f) or (j) of sub-section (1) of
section 75;
(f) amounts of quarterly instalments; and
(g) if the holding is exempted from assessment, a note to that effect.
85. Powers to assess consolidated tax for building and land on which it stands.—(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) 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.
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(3) In case of disputes, the municipality shall determine what amount the owner of the building and of
the land shall pay respectively.
86. Reduction of valuation, revision of valuation and assessment and revision of valuation list
and assessment register.—(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) 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) Every alteration made under sub-section (1) in the assessment register shall be signed by the
Chairperson or the Vice-Chairperson.
87. Notice to be given to Chairperson, of transfers of title of persons liable of payment of tax.—
(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) 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) 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) 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.
88. Revisions of valuation list.—(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) 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.
89. Appointment of assessor and power of State Government to direct the appointment of
assessor.—(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.
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(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.
90. Revision of assessment register.—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.
91. Effect of revision of assessment register.—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.
92. Exemptions and remission.—(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) 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) 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.
93. Power of assessor.—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.
94. Publication of notice of assessment.—(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) 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.
95. Application for review.—(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) When an assessor has been appointed under section 89 notice of every such application shall be
given by the municipality to the assessor.
96. Procedure for review.—(1) Every application presented under section 95 shall be heard and
determined by a Committee consisting of not more than five members.
(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:
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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) 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) 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) If the committee orders that any valuation to which the application relates shall be reduced, brief
reasons for such reduction shall be recorded.
(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.
97. Limitation of time for application for review.—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.
98. Assessment to be questioned only under Act.—No objection shall be taken to any assessment
or valuation in any other manner than is provided in this Act.
99. Tax not invalid for want of form.—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.
100. Procedure for imposing taxes, recovery of claims, etc.—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.