Andhra Pradesh Municipal Laws (Amendment) Act, 1989*
| [Andhra Pradesh Act No. 20 of 1989] | [17th October, 1989] |
An Act further to amend the Andhra Pradesh Municipalities Act, 1965 and the Hyderabad Municipal Corporations Act, 1955.
Be it enacted by the Legislative Assembly of the State of Andhra Pradesh in the Fortieth Year of the Republic of India as follows:-
* Received the assent of the Governor on the 17th October, 1989. For Statement of Objects and Reasons, please see the Andhra Pradesh Gazette, Extraordinary, Part IV-A, dated the 15th September, 1989, at Page 9.
1. Short title and commencement.- (1) This Act may be called the Andhra Pradesh Municipal Laws (Amendment) Act, 1989.
(2) It shall come into force on such date as the State Government may, by notification, appoint and different dates may be appointed for different provisions.
2. Amendment of Act 6 of 1965.- In the Andhra Pradesh Municipalities Act, 1965,-
(a) in section 85, in sub-section (2), for the expression "section 81", the expression "sections 81 and 87" shall be and shall be deemed always to have been substituted;
(b) for section 87, the following shall be substituted, namely:-
87. "Method of assessment of properly tax.- (1) Every building shall be assessed together with its site and other adjacent premises occupied as an appurtenance thereto unless the owner of the building is a different person from the owner of such site or premises.
(2) The annual rental value of lands and buildings shall be deemed to be the gross annual rent at which they may reasonably be expected to be let from month to month or from year to year with reference to its location, type of construction, plinth area, age of the building, nature of use to which it is put and such other criteria as may be prescribed.
(3) Notwithstanding anything in the Andhra Pradesh Buildings (Lease, Rent and Eviction) Control Act, 1960 (Act XV of 1960), the gross annual rent at which the lands and buildings might reasonably be expected to be let from month to month or from year to year, shall be determined by the Commissioner, with reference to its location, type of construction, plinth area, age of the building, nature of use to which it is put and such other criteria as may be prescribed:
Provided that in the case of any, Government or railway building or any building or a class of buildings not ordinarily let, the gross annual rent of which cannot, in the opinion of the Commissioner be estimated, the annual rental value of the premises shall be deemed to be nine percent of the estimated value of the land and the present cost of erecting the building after deducting a reasonable amount towards depreciation which shall in ??? case be less than ten percent of such cost.
(4) The annual rental value of lands and buildings shall be deemed to be the gross annual rent at which they may reasonably be expected to let from month to month or from year to year, less a deduction at the rate of ten percent for buildings upto the age of 125 years and twenty percent for buildings above the age of 25 years of that portion of such gross annual rent which is attributable to the building, apart from their sites and adjacent lands occupied as an appurtenance thereto and the said deduction shall been lieu of all allowances for repairs or on any other account whatsoever:
Provided that a rebate of forty percent of the annual rental value shall be allowed in respect of the residential buildings occupied by the owner inclusive of the deduction permissible under this sub-section.
Explanation: For the purposes of this section, an area not exceeding three times the plinth area of the building including its site or a vacant land to the extent of one thousand square metres, whichever is fess shall be deemed to be adjacent premises occupied is an appurtenant to the building, and assessed to tax in accordance with the provisions of this section, and the area, if any, in excess of the said limit shall be deemed to be land not occupied by or adjacent and appurtenant to such building and the tax shall be levied thereon in accordance with the provisions of sub-section (3) of section 85 as if it were land to which that sub-section applied.
(c) in section 88,-
(i) in sub-section (1),-
(A) After clause (b), the following shall be inserted, namely:-
"(bb) Educational institutions upto 10th class, the buildings of which are donated by charitable institutions or Philonthropists, or which are depending on the grant-in-aid by the Government for the maintenance and such other educational institutions which are not running purely on commercial lines, but serving the cause of primary education which the Government may consider from time to time;";
(B) In clause (c), for the words "Buildings used for educational purposes including hostels,", the weirds "buildings used for hostels" shall be substituted;
(C) In the proviso to clause (i) for the expression "in clauses (a), (c) and (e)", the expression clauses (a), (bb), (c) and (e)" shall be substituted.
(ii) After sub-section (1), the following sub-section shall be inserted, namely:-
"(1-A) The buildings and lands specified in sub-section (1) shall however be liable to pay the tax components specified in clauses (b), (c), (d) of sub-section (1) of section 85.";
(iii) in sub-section (5),-
(a) item (i) shall be omitted;
(b) for item (ii), the following shall be substituted, namely:-
"(ii) If the annual rental value of the same does not exceed Rs. 300/- the case of owner occupied residential buildings within the municipal limits:
Provided that in respect of houses constructed for urban poor, the municipality shall collect one rupee for every half-year towards property tax;";
(d) in section 91, for the two provisos, the following shall be substituted, namely:-
"Provided that a penalty at the rate of five per cent of tax shall be imposed for every month in the case of failure to pay property tax made after the expiry of sixty days after the commencement of half year and shall be liable for disconnection of all essential services.";
(e) in section 123, after sub-section (4), the following shall be added, namely:-
"(5) The Government may impose a suitable cut in the amounts of grants or as the case may be the compensation to be released in respect of Municipalities whose tax collection is less than eighty-five per cent of the demand of each year.";
(f) After section 387, the following shall be inserted, namely:-
387-A. "Power to give direction.- The Government may from time to time give such directions not inconsistent with the provisions of the Act or the rules made thereunder to the municipalities as it may consider necessary for tarrying out the purposes of this Act.";
3. Amendment of Act II of 1956.- In the Hyderabad Municipal Corporations Act, 1955,-
(a) in section 202,-
(i) in clause (b), the words "or education" shall be omitted;
(ii) after clause (b), the following shall be inserted, namely:-
"(bb) educational institutions upto 10th class, the buildings of which are donated by charitable institutions or Philanthropists, or which are depending on the grant-in-aid by the Government for the maintenance and such other educational institutions which are not running purely on commercial lines, but serving the cause of primary education which the Government may consider from time to time;";
(b) after section 202, the following section, shall be added, namely:-
202-A "Exemption of property Tax.- (1) The Government may exempt any residential building occupied by the owner from the property tax where the annual rental value of the same does not exceed rupees six hundred.
(2) In respect of every house constructed for the urban poor, the Corporation shall collect an amount of rupees two for every half year towards property tax;".
(c) in section 203, after sub-section (3), the following shall be inserted, namely:-
"(4) The Government may impose a suitable cut in the amounts of grants or as the case may be the compensation to be released in respect of corporation whose tax collection is less than eighty-five per-cent of the demand of each year."
(d) in section 212,-
(i) for sub-section (1), the following sub-section shall be substituted, namely:-
"(1)(a) The annual rental value of lands and buildings shall be deemed to be the gross annual rent at which they may reasonably be expected to be let from month to month or from year to year with reference to its location, type of construction, plinth area, age of the building, nature of use to which it is put and such other criteria as may be prescribed;
(b) the annual rental value of lands and buildings shall be deemed to be the gross annual rent at which they may reasonably be expected to let from month to month or from year to year, less a deduction at the rate of 10% for buildings aged upto 25 years; and 20% for the buildings aged above 25 years; of that portion of such gross annual rent which is attributable to the buildings, apart from their sites and adjacent lands occupied as an appurtenance thereto and the said deduction shall be in lieu of all allowances for repairs or on any other account whatsoever:
Provided that a rebate of 40 percent of the annual rental value shall be allowed in respect of the residential buildings occupied by the owner inclusive of the deduction permissible elsewhere.";
(ii) for sub-section (2), the following shall be substituted, namely:-
"(2) Any vacant land not exceeding three times the plinth area of the building including its site or a vacant land to the extent of one thousand square metres, whichever is less shall be deemed to be adjacent premises occupied as an appurtenant to the building, and assessed to tax in accordance with the provisions of this section and the area, in any, in excess of the said limit shall be deemed to be land not occupied by or adjacent and appurtenant to such building and the tax shall be levied thereon at two percent of the estimated capital value of land.";
(e) in section 226,-
(i) in sub-section (3), for the words "four years", the words "five years" shall be substitute;
(ii) after sub-section (3), the following shall be inserted, namely:-
"(4) The corporation shall take into consideration the rent component of cost of living index prevailing at the time of preparation of new assessment books:
Provided that where the value of the land on which buildings constructed for purposes of choultry, hotels, lodges and cinema theatres increases and the income on the properly does not increase the average rental value shall be fixed with reference to the income of the property.";
(f) in section 269, to sub-sections (2), the following proviso shall be added, namely:-
"Provided that a penalty at the rate of five percent of lax shall be imposed every month in the case of failure to pay property tax made after the expiry of sixty days after the commencement of half year and shall be liable for disconnection of all essential services.";
(g) after section 282, the following section shall be added namely:-
282A. "Revision of Tax by the Director of Municipal Administration.- Where it is brought to the Municipal Administration, that the properly tax is under valued he may re-assess the property tax and fix such accordingly.";
(h) after section 679D the following new section shall be inserted, namely:-
679-E. "Power to give ???.- The Government may from time to time give such directions not inconsistent with the provisions of the Act or the rules made thereunder to the Corporations as it may consider necessary for carrying out the purposes of this Act.".
4. Application of the Act to the Visakhapatnam Vijayawada Municipal Corporation.- The amendments made to the Hyderabad Municipal Corporations Act, 1955 by section 3 shall extend to and shall apply also to the Visakhapatnam and Vijayawada Municipal Corporations.