Objection to Municipal Fees and Charges
One of the most important sources of revenue for municipalities is municipal service fees. These charges include waste disposal fees, renovation charges, fuel-related charges, building permit issuance fees, passenger transportation charges within the country, and similar items. In linguistic terms, the word “charges” refers to an occurrence or event and is also used to denote levies similar to taxes.
Under Iranian law, municipal charges are allocated to municipalities, which collect such charges in return for the services they provide to citizens.
Many people assume that municipal charges are set directly by municipalities. This assumption is incorrect, as the authority to impose such charges lies with the Islamic Councils. Pursuant to Article 70 of the Law on the Formation, Duties, and Elections of Islamic Councils, one of the responsibilities of these councils is the approval of proposals relating to the establishment or abolition of municipal charges. Any change in the amount or type of charges is announced by the Ministry of Interior in accordance with the government’s general policies. Accordingly, Islamic Councils are responsible not only for approving municipal charges but also for abolishing them, while municipalities are tasked with implementing these resolutions.
The Concept of Municipal Charges and Their Legal Basis
Competent Authorities for Reviewing Objections to Municipal Charges
After municipal councils approve and determine the amount of charges, individuals are entitled to object to them. Pursuant to Article 77 of the Municipal Law, as amended in 1966, objections to municipal charges are reviewed by the Commission established under Article 77. This commission is composed of a representative of the judiciary, a deputy of the municipality, and a deputy of the city council. Therefore, the competent authority for addressing objections to municipal charges is the Article 77 Commission of the Municipal Law.
The Article 77 Commission is an independent body separate from the municipality and is considered a non-judicial administrative authority. Upon referral of a case, the commission first examines whether imposing municipal charges is necessary in relation to the specific matter at issue.
This raises the question of which commission is competent to hear objections relating to municipal taxes and charges. To answer this question, it is necessary to briefly explain inherent jurisdiction and local jurisdiction.
- Inherent Jurisdiction: The inherent jurisdiction of the Article 77 Commission is limited to disputes and objections relating to municipal taxes and the pricing of municipal services. It has no authority to consider other matters. For example, objections relating to unauthorized construction cannot be brought before the Article 77 Commission, as such matters fall outside its inherent jurisdiction.
- Local Jurisdiction: The commission’s jurisdiction is limited to disputes between taxpayers and the municipality of the relevant locality. Disputes concerning other cities or municipalities fall outside its territorial authority.
Objection to Decisions of the Article 77 Commission
After conducting its review, the Article 77 Commission issues a decision. Decisions rendered by this commission are deemed final and are not subject to appeal within the framework of the Municipal Law, as no appeal mechanism has been provided for such decisions. The commission operates independently of municipalities; even if a municipality objects to the collection of charges, the commission also examines those objections.
Due to the high volume of municipal cases, the commission may be divided into several branches. These branches are equal in status and do not have hierarchical superiority over one another. In addition, there is another authority, the Administrative Justice Court, which has jurisdiction to review objections and complaints against administrative decisions. Accordingly, individuals may submit objections relating to decisions of the Article 77 Commission to the Administrative Justice Court.
How Is Installment Payment of Municipal Charges Handled?
In some cases, municipal charges may be substantial, and individuals may lack the financial ability to pay the full amount in a single payment. In such circumstances, individuals may submit a request for installment payment of municipal charges to the relevant municipality. It should be noted that the competent authority for approving installment payments is the Article 77 Commission.
If the commission determines that the applicant is unable to pay the charges in a lump sum, it may authorize installment payments for a period of up to three years. This period may not exceed three years. Installment payments of municipal charges approved by the Article 77 Commission are calculated based on the ordinary interest rate applied by Bank Melli Iran.
Frequently Asked Questions About Objection to Municipal Charges
Municipal charges are revenues collected by municipalities in return for providing urban services such as waste management, renovation, issuance of building permits, and passenger transportation. The legal basis for determining and approving these charges lies with the Islamic Councils and the Ministry of Interior, while implementation is carried out by municipalities.
The competent authority for reviewing objections to municipal charges is the Article 77 Commission of the Municipal Law, composed of a representative of the judiciary, a deputy of the municipality, and a deputy of the city council.
The commission has both inherent and local jurisdiction. Its inherent jurisdiction extends to disputes relating to municipal taxes and service charges, while its local jurisdiction extends to financial disputes between individuals and the municipality of the relevant locality.
Decisions of the Article 77 Commission are considered final under the law and are not subject to appeal within the commission system. However, objections to such decisions may be submitted to the Administrative Justice Court.
If payment in a single installment is difficult, individuals may request installment payments from the Article 77 Commission. Upon approval, the charges may be paid in installments over a period of up to three years, at the ordinary interest rate of Bank Melli Iran.
The commission consists of a representative of the judiciary, a deputy of the municipality, and a deputy of the city council, and it operates independently from the municipality. What are municipal charges, and what is their legal basis?
Which authority is competent to hear objections to municipal charges?
What is the jurisdiction of the Article 77 Commission?
Can decisions of the Article 77 Commission be challenged?
How can municipal charges be paid in installments?
Who are the members of the Article 77 Commission?
