LOCAL GOVERNMENTS (RATING) ACT, 2005.

ARRANGEMENT OF SECTIONS.

   Section

PART I
PRELIMINARY.

   1.   Short title.

   2.   Interpretation.

PART II
LEVY OF RATES BY LOCAL GOVERNMENTS.

   3.   Local governments to levy rates.

   4.   Valuation lists.

   5.   Exempted properties.

   6.   Local governments may remit or reduce rate.

   7.   Liability of owner.

PART III
VALUATION FOR PURPOSES OF RATING.

   8.   Valuers for local governments.

   9.   Declaration by surveyor.

   10.   Particulars of valuation list.

   11.   Ascertainment of rateable value.

   12.   Mass valuation.

   13.   Power of entry.

   14.   Draft valuation list and notice.

PART IV
OBJECTIONS AND APPEALS.

   15.   Notice of objection.

   16.   Local government to send valuation list to valuation court.

   17.   Appointment of members of valuation court.

   18.   Quorum.

   19.   Hearing by valuation court.

   20.   Draft valuation list and date of coming into force.

   21.   Notice of valuation list.

   22.   Appeal.

PART V
ENFORCEMENT.

   23.   Valuation list as altered, and date of coming into force.

   24.   Supplementary valuation list.

   25.   Clerical and arithmetical errors.

   26.   Notice of rate.

   27.   Payment of rates.

   28.   Rates payable pending appeal.

   29.   Recovery by warrant.

   30.   Recovery by action.

   31.   Recovery from tenants and occupiers.

   32.   Evidence.

   33.   Buyer to satisfy himself or herself about arrears.

   34.   Prohibition against transfer of property in arrears of rate.

   35.   Person liable to notify transfer of the property.

   36.   Rate first charge on property.

PART VI
MISCELLANEOUS.

   37.   Property Tax Fund.

   38.   Regulations.

   39.   Power of Minister to amend First Schedule.

   40.   Consequential amendment of Local Governments Act.

   41.   Repeal of Cap. 242 and saving.

      First Schedule   Currency point.

      Second Schedule   Exempted properties.

      Third Schedule   Forms.

LOCAL GOVERNMENTS (RATING) ACT, 2005.

Commencement: 1 November, 2005.

   An Act to provide for the levy of rates on property by local governments within their areas of jurisdiction; to provide for the valuation of property for the purpose of rating; to provide for the collection of rates; to repeal the Local Government (Rating) Act and to provide for other related matters.

PART I
PRELIMINARY.

1.   Short title.

   This Act may be cited as the Local Governments (Rating) Act, 2005.

2.   Interpretation.

   (1) In this Act unless the context otherwise requires—

   "commercial building" means a building, the whole or any part of which is used for the purpose of any business;

   "currency point" has the value assigned to it in the First Schedule to this Act;

   "financial year" means the period commencing on the 1st"> of July each year and ending on the 30th"> of June in the following year;

   "gross-value" means, subject to subsection (2) of this section, the rent at which the property might reasonably be expected to let, from year to year, if the tenant undertook to pay conservancy fees, water rates and all other usual tenants' rates and taxes and the landlord undertook to bear the cost of repairs and any other expenses necessary to maintain the premises in a state to command that rent;

   "industrial building" means a factory, mill or other premises of similar character used wholly or mainly for industrial purposes;

   "local government" means a district council, a city council, a municipal council or a town council within the meaning of the Local Governments Act;

   "Minister" means the Minister responsible for local governments;

   "non-industrial building" means a building which is not an industrial building;

   "occupier" includes any person in actual occupation of rateable property without regard to the title under which the property is occupied;

   "owner" means a proprietor whose interest in a particular piece of land is registered under the relevant laws of Uganda or any person who has a right to or concession over that particular land for an indefinite period;

   "property" means immovable property and includes a building (industrial or non-industrial) or structure of any kind, but does not include a vacant site;

   "rate" means a rate on property levied by a local government under this Act;

   "rateable value" means the net annual rental value of a property ascertained in accordance with this Act;

   "urban area" means a city, municipality and town and also any other area prescribed by the Minister by statutory instrument;

   "valuation court" means the valuation court appointed by a district, city or municipal council under this Act; and

   "valuer" means the valuation surveyor appointed under this Act.

   (2) In estimating the annual rental value of any property to the tenant, no account shall be taken of the value of any services which the landlord renders or procures to be rendered to the tenant (either alone or in common with other tenants) other than the provisions of, or repairs to or maintenance of, the property.

PART II
LEVY OF RATES BY LOCAL GOVERNMENTS.

3.   Local governments to levy rates.

   (1) Every local government shall levy such rates as it may determine on the basis of the rateable value of any property within its area of jurisdiction.

   (2) The minimum amount of rate for any financial year in respect of each property entered in the valuation list shall be one-tenth of a currency point (2,000 shillings); except that the amount of rate in respect of any property in any financial year shall not exceed 12 percent of the rateable value of the property.

   (3) Subject to subsection (4) of this section, the rate may be levied under this section only in respect of an urban area.

   (4) Notwithstanding subsection (3) the rate may be levied in any area outside the urban area in respect of a commercial building.

   (5) For the avoidance of doubts, no rate shall be levied in respect of a residential building in a place not being in the urban area.

   (5a) No rate shall be levied in respect of a residential building in an urban area where the owner resides in that residential building.

   (6) Subject to subsection (3) of section 20, the rate shall be the rate payable in respect of the financial year for which it is levied, and for every future financial year until it is altered in accordance with this Act.

   (7) In this section "residential building" means a building used exclusively for residential purposes.

4.   Valuation lists.

   For the purposes of section 3, a local government shall cause to be made, for its area of jurisdiction a first valuation list and thereafter a valuation list, once at least in every five years, or such longer period as a local government may determine.

5.   Exempted properties.

   (1) The properties specified in the Second Schedule shall not, subject to the provisions of that Schedule, be liable to the rate.

   (2) The Minister may, by statutory instrument, made in consultation with the Minister responsible for finance, amend the Second Schedule.

6.   Local governments may remit or reduce rate.

   A local government may only reduce or remit the payment of the rate in respect of any property as prescribed by the Minister by regulations.

7.   Liability of owner.

   (1) The person liable for payment of the rate shall be the owner of the property in respect of which the assessment is made.

   (2) Where the name of the owner of any property is not known to a local government, it shall be sufficient to assess the person to the rate by the description of the occupier of the property in respect of which the assessment is made without further name or description.

PART III
VALUATION FOR PURPOSES OF RATING.

8.   Valuers for local governments.

   For the purpose of valuation of any property for rating under this Act, a local government shall appoint a person who is qualified and registered as a valuation surveyor and who holds a valid practising certificate under the Surveyors' Registration Act as valuer.