Tax Glossary Definition
Municipal tax is a local tax levied by municipal or local government authorities on property owners, residents, or businesses within their jurisdiction. It is used to fund local infrastructure, public services, and civic amenities.
Key Features: Imposed by municipal corporations, municipalities, or local bodies. Typically based on property value, location, or usage (residential, commercial, or industrial). Helps fund essential services such as water supply, sanitation, roads, street lighting, and public parks. Payment may be annual, semi-annual, or quarterly, depending on local regulations.
Examples: Property tax on a residential house or commercial building. Water or sewerage tax collected along with property tax. Special levies for garbage collection or public infrastructure maintenance in a municipality.
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