Tamil Nadu   

Local bodies to get ad tax, licence fees from hoardings

CHENNAI: Local Administration Minister M.K. Stalin introduced in the Assembly a Bill, Tamil Nadu Municipal Laws (Fourth Amendment) Act, 2008, to enable the State government to give local bodies licence fees and advertisement tax from hoardings.

Earlier, in 2003, Acts governing Urban Local Bodies were amended to empower the District Collector to grant permission for hoardings and make the government the appellate authority.

“By the said amending Act, amendments were also made to empower the government to prescribe, by rules, the advertisement tax on hoardings, subject to the maximum and minimum specified in the Act concerned, and credit the licence fees and 75 per cent of the advertisement tax on hoardings to the government account and the balance 25 per cent on such advertisement tax to the account of the urban local body,” said the statement of objects and reasons.

Mr. Stalin also introduced Tamil Nadu Municipal Laws (Fifth Amendment) Act, 2008 to introduce a section in existing Acts in three urban agglomerations on disclosure of information. This is mandated under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM).

The Chennai City Municipal Corporation Act, 1919, the Madurai City Municipal Corporation Act, 1971, the Coimbatore City Municipal Corporation Act, 1981 and the Tamil Nadu District Municipalities Act, 1920, are to be amended to include the disclosure clause.

JNNURM “requires State governments and Urban Local Bodies to undertake certain reforms as a condition to access funds under the Mission. These reforms are aimed at improving local governance, including accountability and transparency in administration,” says the statement of objects and reasons.

The government decided to amend the Acts to ensure maintenance of records and enable disclosure of information.

A third Bill introduced by Mr. Stalin, Tamil Nadu Municipal Laws (Sixth Amendment) Act, 2008 sought to amend existing Acts in Corporations to give greater powers to the Mayor. It also sought to enhance financial powers of the contract committee of municipalities, by amending Tamil Nadu District Municipalities Act, 1920.

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