As per the Pradeshiya Sabha Act No. 15 of 1987, this tax is not applicable to cars, lorries, motorcycles and other motor vehicles coming under the purview of the Motor Traffic Act.

This license should be obtained on or before the date ordered by the Pradeshiya Sabha or before such date prescribed by bylaws.

Bicycles, tricycles, tricycle carts, handcarts, rickshaws, horses and ponies kept with the area of the Pradeshiya Sabhha are subject to this tax.

Procedure

• There is no specific application for this and a receipt indicating the amount paid to the Pradeshiya Sabha is issued.
• A metal strip with the registered number engraved is issued for the animal or the vehicle.

When taxes are not paid

• A notice is served by the Pradeshiya Sabha for those who have not obtained the license.
• The owner of the animal or the vehicle is produced before Magistrate Court and the Court shall proceed to recover the amount due as if it were a fine.
• Failure to submit the metal strip with registration number when ordered by the Chairman/Secretary or an authorized officer or a police officer when it is not displayed could result in the arrest of the animal/vehicle. In such an eventuality, the owner or the custodian is produced before the Magistrate’s Court.

The following animals and vehicles are exempted from taxes

• Vehicles belonging to the government or the Pradeshiya Sabha
• Vehicles kept for sale
• Motor vehicle coming under section 2 of Motor Traffic Act

Under section 141 of the Pradeshiya Sabha Act, it is compulsory to register with the Pradeshiya Sabha all lands and buildings located within the administrative limits of the Pradeshiya Sabha and owners and tenants of such lands and buildings. It is also mandatory to register with the Pradeshiya Sabha all transactions with respect to lands and buildings located within the Pradeshiya Sabha area.

• Lands are not allowed to be blocked out or developed when not registered.
• Similarly, building licenses are not issued when not registered

Fee

Fees are levied for this and the fee varies as per the determinations of the Sabha.

Documents need to be submitted

• A copy of the title deed of the relevant land or building certified by a notary public
• Rates No, value and other details of the land or building
• Boundaries of the relevant land or building and as to how they can be identified
• If there is joint ownership of the land or building, the names and addresses of such joint owners.
• A registered copy of the title deed with notary’s certification
• A copy of the survey plan

Procedure

• Obtaining an application form by paying the relevant fee
• Handing over other documents to be submitted with the applications
• The Rates Register is inspected to verify the details submitted by the applicant
• Conducting field observations
• Granting approval for amending the Rates Register
• Amending the Rates Register and notifying the applicant

When the details submitted by the applicant are inconsistent with those in the Rates Register, the owner is notified to submit a declaration of title.

As per section 154 of the Pradeshiya Sabha Act No. 15 of 1987, a tax can be levied when certain lands are sold.

Where any land within the limits of a Pradeshiya Sabha is sold by public auction or otherwise, by an auctioneer or broker or his servant or agent, the vendor or such auctioneer or broker or his servant or agent, shall pay a tax to the Pradeshiya Sabha, from the proceeds of the sale of such land.

Procedure

• Inspection of the Land.
• Notifying the amount to be Paid.
• Obtaining a receipt upon the Payment.

If the tax is not paid within 14 days of demand, legal action can be initiated against them.

Procedure for Levying Assessment Tax

Rates are levied under the Pradeshiya Sabha Act No. 15 of 1987 when a locality is declared by the Pradeshiya Sabha to be built up localities.

Eligibility for Paying Assessment Tax

Being a resident of any of the following land or building situated within a built up locality in the Pradeshiya Sabha area.

• Being the owner of an immovable property located within the administrative limits of Pradeshiya Sabha.
• Being the tenant of a House, Building or Land located within the administrative limits of Pradeshiya Sabha.
• Being the owner of a House, Building or Land belonging to the state.
• Being a Joint owner (co-owner) of an immovable property located with the administrative limits of the Pradeshiya Sabha.

Here,

• 7% of the value of the property should be paid as assessment tax.
• The owner is entitled to a discount of ten per centum of the amount if the assessment tax is paid within the first month of the year.
• A discount of five per centum is offered if the amount to be paid during a quarter is paid within the first month of the relevant quarter.
• Assessment tax can also be paid quarterly for each of the four quarters of the year.
• A person who purchases a land from a locality where assessment tax is in operation should obtain a new rates number ( by submitting deed abstract)
• If the person acquires the total property form the person who at present has an assessment number, be should get his name included in the assessment register in pradeshiya sabha by producing the deed abstract.
• The deed abstract form for the amendment of the name in the assessment register or for obtaining a new assessment number may obtain from the pradeshiya sabha office by paying he prescribed fee.
• The deed abstract form should be filled and get certified by a notary public by producing the deed.
• The completed form should be submitted to the office in duplicate together with two copies of the survey plan and two copies of the deed.
• Your name will then be registered as an assessment tax payer.

Further particulars in this regard may be obtained from the Assessment Division of the Pradeshiya Sabha.

Grama Niladhari Divisions from which Assessment Taxes are levied at present.

Habarakada North (Part)	Siddamulla South	Habarakadawatta
Siddamulla North	Gehenuwala (Part)	Kudamaduwa
Meegoda North (Part)	Deepangoda	Panagoda Town
Kitulahena	Gogama North	Sangharama
Godagama South	Rilawala	Pitipana Town
Siyambalgoda North	Pitipana North (Part)	Siyambalagoda South
Kiriberiyakele (Part)	Wetara	Homagama North
Heraliyawala	Homagama South	Palagama
Homagama East	Undurugoda	Homagama West
Weniwelkola	Homagama Town	Kahathuduwa North
Katuwana (Part)	Kahathuduwa South	Galawila watta South
Kahathuduwa East	Galawilawatta North	Kahathuduwa West
Madulawa North (Part)	Kiriwththuduwa North	Liyanwala (Part)
Kitulawila	Mattegoda (Central B)	Munamale
Mattegoda West	Liyanawala (Part)	Mattegoda (Central A)
Madulawa North (Part)	Mattegoda East	Kirigampamunuwa
Diyagama East	Magammana East	Diyagama West
Magammana West

As per the section dealing with by-laws in the Pradeshiya Sabha Act No. 15 of 1987, permission has to be obtained for any advertisements displayed or exhibited in an open area within the administrative limits of the Pradeshiya Sabha for public attention.

• For the purposes of this by-law, an advertisement means displaying a word, letter, number, sign, location, board, banner, poster or a leaflet or hanging any one of them above any land, building, or structure with the aim of giving full or partial publicity.
• The fee charged for an application issued by the Pradeshiya Sabha may be decided by the Sabha from time to time according to the nature of the advertisement through a resolution passed at the Sabha.

The above provisions shall not be relevant to any of the advertisements stated below,

• A notice relating to a concert that deploys the amount of net revenue for charity affairs;
• An advertisement relating to a concert and displayed on the spot where the said concert is held;
• Advertisements put up by the government
• Non-business advertisement displayed in properties belonging to religious institutions
• An advertisement stating “to be let on rent” or an advertisement stating “sale”.
• House name boards;
• Name boards utilized for professional activities and not exceeding one square feet in area;

Every application forwarded shall satisfy the following requirements.

• In respect of large hoardings, the diagram of that structure drawn in scale not less than 1 : 1000
• A copy of the same advertisement drawn in small scale

Procedure for Application

• Forwarding a letter to the Secretary applying for the License
• It should be forwarded seven days prior to the prior to seven days before fixing the Advertisement
• For a permanent advertisement, the fee is determined as per the number of square feet of the advertisement subsequent to an on-site inspection.
• License is issued after levying the application and License Fee.

In displaying advertisements, the following regulations should be observed

• In all advertisements, the license number and the date of issue of the license should be indicated.
• The name and address of the license holder should be clearly displayed on the front surface of the board.
• In case of a banner, it should have the seal of the Chairman of the Pradeshiya Sabha.

Advertisements should be fixed in such places where drivers are not distracted.

Trade licenses have to be obtained for businesses and trades set out in by-laws drafted as per section 149 of the Pradeshiya Sabha Act No.15 of 1987 and the Local Authorities (Standard By-Laws) Act No 6 of 1952.

Trades that should obtain Trade Licenses

Lodging Houses                      Hotels Eateries, Restaurants and Tea and Coffee Kiosks Bakeries Dairies and sale of Milk Sale of Food Sale of Fish Sale of Meat

Dangerous and offensive Trades (as declared by the Sabha) Other Factories Soft Drink Factories Laundries Itinerary Trade Slaughter Houses Public Markets Barber Salons

In addition, licenses have to be obtained for dangerous and offensive trades declared as per the Local Authorities (Standard By-Laws) Act No. 6 of 1952.

To obtain this license, the application form provided by the Sabha should be duly filled and returned.

Fee

• A sum less than Rs. 1000,00 (on annual value of the business) is charged as a license fee.
• A business tax will be levied from businesses for which the license should not be obtained.

Procedure

• Handing over of applications to all businesses within the area of authority of the Pradeshiya Sabha.
• Collection of completed Applications.
• Checking validity of details furnished by the Applicant.
• Refering application for the Approval of inspector of Public Health.
• Conducting a Field inspection.
• Recommendation for the License when there are no shortcomings.
• The license is issued after recovering the License Fee

When the the approval of the public Health Inspector is not received.

• A letter will be addressed to the applicant highlighting the short comings in the Application
• Pradeshiya Sabha should be informed after rectifying such short comings.
• After the spot inspection again, if the business has fulfilled all health regulations and conditions action will be taken to grant the approval for issuing the License.

When the Trade License is not obtained.

• The owner of the business is warned to obtain a Trade License.
• If license is not obtained within 7 days from such notice, action can be filed in magistrate court.

Procedure of Paying Industrial Taxes

• A application is handed over in free of charge to all the business places situated within the municipal limits.
• The applications are collected again.
• A tax up to Rs.1000.00 is levied on the basis of annual value.
• After the payment of taxes, a receipt should be obtained for same.

This Tax will be decided upon

• Annual value of the Business
• Output of Trade
• Profit Accrued
• Level of necessity of products supplied by the Trade

When trade Taxes are not Paid

• A notice will be served on the owner of the Business.
• When there is no response by way of Payment to such notice a case may be filed in the Magistrate Court.

Payment of Business Taxes

Business taxes have to be paid by any business for which license is not necessary.

This tax is imposed as per section 152 of the Pradeshiya Sabha Act No. 15 of 1982 on the basis of the income of the preceding year.

Income	Tax
When exceeding Rs. 6000.00	None
When exceeding Rs. 6000.00 but less than Rs. 12000.00	Rs. 90.00
Exceeding Rs. 12000.00 but less than Rs. 18750.00	Rs. 180.00
Exceeding Rs. 18750.00 but less than Rs. 75000.00	Rs. 360.00
When exceeding Rs. 75000.00 but less than Rs. 150000.00	Rs. 1200.00
When exceeding Rs. 150000.00	Rs. 3000.00

The tax can be paid after handing over the duly completed Application to the Office.

In terms of section 119 of the Pradeshiya Sabha Act and circular No. 1980-46 issued by the Commissioner of Local Governance, Pradeshiya Sabhas are empowered to erect trade stalls and lease them to the public as a service.

Fees

• The trade stales are leased at a fee determined by the Pradeshiya Saba by means of a Resolution.
• The selected applicants should deposit the fee equal to three monthly installments as a Guarantee.
• The tender documents can be obtained on a fee decided by the Pradeshiya Saba.

Procedure of Making Applications

• Giving notice through Newspapers.
• Obtaining tender documents from the Pradeshiya Saba office on payment of tender documents Fee.
• Payment the fee and the refundable deposit.
• Tender applications can either be placed or send under registered cover together with the receipt in support of payment of the fee and the refundable fee.
• Highest bidders get the chance of receiving trade stalls.
• Successful applicants may take over trade stalls on payment of the guarantee deposit and the initial Payment.
• Trading activities can be started on receipt of the Trading Certificate.

In the event of defaulting Installments

• Serving the final Notice.
• The relevant documents should be referred to the Commissioner of Local Governance to constitute legal action to reacquire the possession upon the expiry of agreement.

After Reclaiming the Possession,

• In case new trade stalls are constructed in place of old trade stalls expending money by the government and the local government institutions, the lessee of the old trade stalls is selected as the lessee of the new trade stoles.
• In case new trade stalls are constructed in place of old trade stalls on loans obtained from a commercial bank, existing lessees as well ad new lessee are selected.
• On the request or death of the lessee, his lease can be transferred to his / her wife / husband or to daughter / son and on such an event an application should be made to the Secretary.

As per the Licensing of Clubs Law number 17 of 1975 and subsequent amendments thereof, clubs located in the area of authority of the pradeshiya sabha should be registered in that pradeshiya sabha.

Fee

Inquiry should be made from the office of the Pradeshiya Sabha.

Documents to be provided to obtained the License

The list of rules and regulations duly signed by the chairman of the club together with the application form which should include,

• Name of the Applicant
• Address of the Applicant
• The post held by the applicant whether Chairman / Secretary of Manager.
• Name of the Club
• Address of the Location of the Club.
• Activities of the Club.
• Names of the chairman, secretary and Treasurer.
• Number of Members.

The above information should be provided to the Pradeshiya Sabha.

Information on follow up activities may be obtained from the Pradeshiya Sabha office.

Under this, licenses are issued for carnivals and circuses, musical shows, variety shows and magic shows, sports and dancing festivals, wrestling and Swimming Festivals.

Public performance licenses should be obtained for any performance that does not fall under the classification of cinema films or stage drama that is to be held in the area of authority of pradeshiya sabha in terms of the public performance ordinance number 7 of 1912.

For this Purpose,

• An application form should be obtained from the pradeshiya sabha free of charge.
• License is issued on making a payment. (This fee is to be decided by the sabha to suit the particular time)
• In case of any public objection, a decision on the issue will be taken by the chairman of the Pradeshiya Sabha.

As per the provisions of Entertainment Tax ordinance number 12 of 1946 all public shows staged out in the area of authority of the pradeshiya sabha are liable to pay an entertainment tax. This tax  is included in the tickets issued for all public shows and the tax is levied from all public shows except for religious, educational and charity shows.

Fee

• 10% of the income is levied as the Entertainment Ttax.
• Person / persons who are responsible for public shows should include this tax to the price of the Tickets.

Procedure

• Seal of the chairman of pradeshiya sabha should be affixed on all the Tickets.
• In affixing this seal on tickets for shows other than films screened in cinemas, the relevant taxes should be paid to the pradeshiya sabha. This money is kept as a guarantee and the money levied for unsold tickets is refunded at the end of the show.
• Person / persons are responsible for public shows should keep daily records on the tickets sold.
• Tickets sold for each shows are inspected by inspector or revenue / administrator of revenue of the Sabha.
• For cinema shows,  10% of the income is levied daily as tax taking into account the number of tickets sold daily.
• In case of default of payment of the entertainment tax, a case may be filed in the magistrate court.

A street line certificate is required when a land parcel located within the area of authority of the Pradeshiya Sabha is mortgaged to a financial institution to secure a loan. The importance of this certificate is that the Pradeshiya Sabha is empowered to deal with any building constructed in contravention of street  lines.

Eligibility

• The building concerned should be located within the area of authority of Pradeshiya Sabha.

For this Purpose

• An application form should be obtained from the assessment section of the pradeshiya sabha office by paying the relevant fee
• The application should be submitted together with two copies of the original plan of the land.
• It should be confirmed that the applicant has paid license fees any other relevant fee without any arrears
• It the payments are in arrears, such should be settled.
• Street lines will be marked in the originals and duplicates of the plan submitted by the applicant and thereafter a certificate of street line will be issued.
• The applicant should also have paid al assessment taxes in arrears.

When a loan is obtained by mortgaging land parcel situated within the area of any pradeshiya sabha as a security at a financial institute, a certificate to the effect that land has not been acquired by the pradeshiya sabha is issued. This is known as a certificate of non acquisition.

Following Qualifications should have been Fulfilled to Obtain this Certificate.

• The land or the property should be situated within the area authority of Pradeshiya Sabha.
• Assessment tax should have been paid without any arrears.
• Land or property should not have been situated on street Lines.

For this, a fee determined by the Pradeshiya Sabha from time to time is levied

Documents to be Provided for this Purpose,

• Photocopy of the deed and the Plan.
• Compulsory Information
  • Name of the Street / Road.
  • Assessment Number
  • Location
  • Name of the owner
  • Number and date of the Deed.
  • Number and date of the Plan.

On receipt of all the above information, the non acquisition certificate will be issue duly signed and sealed by the Chairman / Secretary of the Pradeshiya Sabha.

• If it is required to obtain a valuation of any property situated within the area of authority of pradeshiya sabha such valuation has to be done by the Department of Valuation.
• After issuing the certificate of conformity for a building by pradeshiya sabha, the annual value of the that building will be roughly assessed.
• In the sale of a land blocked out by an auctioneer situated with in the area authority of pradeshiya sabha, that property will be assessed to so as to levy the relevant taxes.
• Assessment of property is also carried for levying annual license fee or business tax from all industries or businesses in the area of authority.
• When a property is acquired, the value of such property too is assessed.

Further information on valuation of properties can be obtained from revenue inspector or revenue administration officer of the Pradeshiya Sabha.