T H E F I N A N C I A L L A W S ( M I S C E L L A N E O U S A M E N D ­ M E N T S ) A C T , 2 0 0 8 A R R A N G E M E N T OF P A R T S Part Title P A R T I ' P R E L I M I N A R Y P R O V I S I O N S . P A R T I I A M E N D M E N T O F T H E L O C A L G O V E R N M E N T F I N A N C E S A C T ( C A P . 2 9 0 ) . P A R T I I I A M E N D M E N T O F T H E T A N Z A N I A R E V E N U E A U T H O R ­ ITY A C T ( C A P . 3 9 9 ) . P A R T I V A M E N D M E N T O F T H E U R B A N A U T H O R I T I E S ( R A T I N G } A C T ( C A P . 2 8 9 ) . No. 9 Financial Laws (Miscellaneous Amendment) 2008 3 No. 9 OF 2008 I A S S E N T , _ President 0(P Jaru_,r SIOOS An Act to amend certain written laws for enabling the Tanzania Revenue Authority to collect property rates on behalf of Local Government Authorities in order to enhance collection of rev­ enue, build capacity and experience on collection of property rates. E N A C T E D by Parliament of the United Republic of Tanzania. PARTI P R E L I M I N A R Y P R O V I S I O N S 1. This Act may be cited as the Financial Laws short (Miscellaneous Amendment) Act, 2008. t i t l e 2. The provisions of various Parts of this Act shall each be C o m m e - „ . ncement deemed to have come into operation on the P l day of July, 2008. PART II A M E N D M E N T OF THE L O C A L G O V E R N M E N T F I N A N C E S A C T 3. This Part shall be read as one with the Local Government Constru- Finances Act, hereinafter referred to as the "principal Act". C a p 2 9 0 4. The principal Act is amended in section 4 by inserting in A m e n d - its appropriate alphabetical order the following new definition- ment o f sect ion 4 4 No. 9 Financial Laws (Miscellaneous Amendment) 2008 "Tanzania Revenue Authority" means the authority established by the Tanzania Revenue Authority Act." Cap. 3 9 9 5. The principal Act is amended by adding immediately after section 31, the following new sections:- Addit ion " T R A to 31A.-(1) Without prejudice to the provisions of o f sec - ' c o l l e c t section 31, the Tanzania Revenue Authority in consul­ t ion 3 1 A rates tation with a respective local government authority shall evaluate, assess, collect and account for property rate imposed by Authorities. (2) For the purposes of subsection (1), the Minister may, by order in the Gazette, declare the township authority, the urban authority or a geographical area to be the place where the Tanzania Revenue Authority shall collect rates. (3) In the performance of its functions under this Act, the Tanzania Revenue Authority shall be indemni­ fied by the local government authorities in relation to any cost incurred, loss suffered or action brought by reason of performance of such functions. (4) Notwithstanding the provisions of subsection (3), a local government authority shall not be held responsible for cost incurred or loss suffered by any person as a result of a negligent act or omission by the Tanzania Revenue Authority. (5) In the enforcement or recovery of property rate the Tanzania Revenue Authority shall apply mutatis mutandis the powers of recovery stipulated under the provisions of the Income Tax Act and the Urban Authorities (Rating) Act. No. 9 Financial Laws (Miscellaneous Amendment) 2008 5 (6) For the purposes of this section "assess" means the act of Caps .289 computing property rate from property value. m i 3 3 2 31B.-(1) Where the Minister has declared a township V a l « a - authority, urban authority or, as the case may be, a geographical r e i i a b i e area pursuant to subsection (2) of section 31 A, the Tanzania proeprty Revenue Authority in consultation with a respective local gov­ ernment authority shall make valuation of all rateable properties for purposes of establishing the rate payers and rates collectible and prepare a rates payers list thereof. (2) The rates payers list shall show in respect of each rate payer- (a) the name and address of rate payer; (b) the area and situation of the rateable property, matter or activity; (c) any other information as the Authority may consider neces­ sary. (3) In preparing the rates payers list under this section, the Tanzania Revenue Authority shall have regard to the provisions of the Urban Authorities (Rating) Act relating to the preparation Cap.289 of rate. (4) The Tanzania Revenue Authority shall after preparing a rates payers list issue a demand notice to every owner in respect of the rates of such properties in accordance with the provisions c a p . 2 8 9 of the Urban Authorities (Rating) Act. (5) Any dispute and objection arising from valuation and pay­ ment of rates in respect of areas designated pursuant to Section 31A(2) shall be determined in accordance with the provisions of Cap.408 the Tax Revenue Appeals Act." (6) The period for which the agency of Tanzania Revenue authority for collecting of property rate shall be five years begin­ ning on 1st July, 2008 however the Minister may- (a) extend the period of agency for specified time; 6 N o . 9 Financial Laws (Miscellaneous Amendment) 2008 (b) terminate the agency in relation to the specified local gov­ ernment authority upon being satisfied that the local government authority has acquired a requisite capacity to collect the proper­ ty rate. PART III A M E N D M E N T O F T H E T A N Z A N I A R E V E N U E A U T H O R I T Y A C T Constru- £# T n i s p a r t shall be read as one with the Tanzania Revenue Cap 399 Authority Act herein referred to as the "principal Act". A m e n d - 7. Th e principal Act is amended in section 3 by inserting the o f s e c - words "rates" between the words "fees" and "fines" appearing in rion 3 the definition of the word "revenue". A m e n d ment o f 8^ The principal Act is amended in section 5(2) by- sect ion 5 (a) adding immediately after paragraph (d) the follow­ ing new paragraph- "(e) negotiate and agree with a respective local govern­ ment authority on the revenue collection targets for any given financial year subject to modalities that may be agreed." (b) renaming paragraph (e) to (g) as paragraphs (f) to (h). A m e n d ­ 9. The principal Act is amended in section 14 by adding ment o f s e c t i o n immediately after subsection (7) the following subsection: 14 "(8) Subject to Section 7 of the Urban Authority (Rating) Act, the Tanzania Revenue Authority may after consultation with Cap.289 respective local government authority exempt rateable property from being a rateable property. (9) Every local government authority shall furnish the Tanzania Revenue Authority with a list of properties eligible for remission or exemption of rates." No. 9 Financial Laws (Miscellaneous Amendment) 2008 7 10. The principal Act is amended by adding immediately after Addit ion subsection 20, the following: o f Sect ion 2 0 A " S p e c i a l 20A.-(1) The property rates collected by the account Authority shall be credited into a special local govern­ ment authority account and shall be remitted to the rele­ vant local government authority in a manner agreed upon by both parties. (2) The Commissioner General shall submit to a rel­ evant local government authority a monthly report in respect of property rates collected." 11. The principal Act is amended in the First Schedule by- A m e n d - (a) adding immediately after paragraph 25 the follow- ment o f ing new paragraphs: t h e F i r s t "26. The Local Government Finances Act, Cap. 290. Schedule 27. The Urban Authorities (Rating) Act, Cap. 289." (b) renumbering paragraph 26 as 28. PART IV A M E N D M E N T OF U R B A N A U T H O R I T I E S ( R A T I N G ) A C T 12. This Part shall be read as one with the Urban Authorities Constru- (Rating) Act hereinafter referred to as the "principal Act". ction Cap .289 13. The principal Act is amended in section 4 by adding A m e n d - immediately after subsection (1) the following new provision: ^ f ^ f o n 4 "(1A) Without prejudice to subsection (1), the Tanzania Revenue Authority in consultation with a respective local government authority shall appoint a Valuation Surveyor for preparing a roll or supplemen­ tary roll for all rating authorities to which it has been appointed as agent." 8 N o . 9 Financial Laws (Miscellaneous Amendment) 2 0 0 8 A m e n d - 1 4 -j^e principal Act is amended in section 23 by adding s e c t i o n immediately after subsection (5), the following new subsection: 23 "(6) The preceding provisions ofthis section shall not apply to areas of the local government authority to which the Tanzania Revenue Authority has been appointed the agent." 15. (1) The principal Act is amended in subsection (1) by deleting the phrase "not exceeding one hundred shillings, and, in the case of a continuing offence, a further fine not exceeding ten shillings for everyday during which the default continues" and substituting for it the phrase "of twenty per centum of the rate defaulted and in the case of continuing default, five per centum per month of the sum remaining in default." (2) For the purposes of subsection (1), a penalty of five per cent shall be imposed beginning in the second month from the date of imposition of the twenty per cent penalty. (3) For the purposes of subsection (2), part of a month shall be deemed to be full month and the total penalty shall not exceed the principal sum of the rate payable. A m e n d ­ ment o f 16. The principal Act is amended in section 51 by- sect ion (a) designating section 51 as subsection (1); 51 (b) adding after a designated subsection (1) a new sub­ section (2) as follows: "Non "(2) In consultation with the Minister responsible appiica- for finance, the Minister may make regulations tion o f providing for the procedural and operational the Act matters on property rates." Addition 17. The principal Act is amended by adding immediately o f sec- a e r tion 4 2 A f t section 42 the following new section: " 4 2 A . The provisions of Part V of the Act shall not apply where the agency of the Tanzania Revenue Authority is in force." No. 9 Financial Laws (Miscellaneous Amendment) 2008 9 Passed in the National Assembly on the 17th April, 2008 Acting Clerk of the National Assembly