(1) With effect from the date of commencement of this Act,-
(a) a library cess in the form of a surcharge on,-
(i) tax on lands and buildings;
(ii) tax on entry of goods into the local area for consumption, use or sale therein;
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(iii) tax on vehicles;
(iv) tax on professions, trades, calling and employments;
shall be levied in the area within the jurisdiction of every City Library Authority under the relevant laws relating to local authorities providing for the levy of such taxes, at the rate of three paise for every rupee of the taxes so levied;
(b) a library cess in the form of a surcharge on tax on lands and buildings shall be levied in the area within the jurisdiction of every District Library Authority, under the relevant laws relating to local authorities providing for the levy of such tax at the rate of three paise for every rupee of the tax so levied.
(2) A City Library Authority or District Library Authority may, with the previous sanction of the State Government , by notification, increase the rate of library cess levied on any item of tax specified in clause (a) or (b) of sub-section (1), subject to the condition that the rate shall not exceed six paise for every rupee of the tax levied.
(3) The cess levied under clause (a) or clause (b) of sub-section (1) or increased under sub-section (2) shall be collected by the municipal corporation, municipal council or other municipal body, or the village panchayat or other local authority having jurisdiction over the area as if the cess were a tax referred to in the said clause payable under the relevant laws for the time being in force in the area, and all the provisions of the said laws relating to the levy and collection of the said tax shall apply subject to such modifications as may be prescribed.
1[(4) Out of the cess collected by it under sub-section (3) every local authority shall be entitled to retain ten per cent of the amount collected towards the cost of collection and the balance shall be paid to the City Library Authority or the District Library Authority, as the case may be.]1
1. Substitued by Act 45 of 1976 w.e.f. 1.4.1969