The Hindu 12.03.2013
Property tax rates, rules revised
Revised property tax rates and simplified rules for filing building tax returns will come into force on April 1.
Urban Affairs Minister Manjalamkuzhi Ali approved the amendments to the Kerala Property Tax Rules, 2011 on Monday. The form and procedures for filing tax returns to civic bodies have been simplified. The additional burden put on building owners since the 2011 rules came into force has now been eased, an official press note issued here on Monday said.
The revised rules do away with the system of levying fine for not filing the returns, for delay in filing the returns, and for errors in the returns filed. The rules in force had provisions to levy a fine of Rs.50 for a delay of 10 days, Rs.100 for a further delay of 30 days, and Rs.10 per day till the returns were filed. These provisions have been scrapped.
The existing norms had provisions for a 30 per cent annual hike in tax for buildings having proximity to national and State highways and access to a road with a width of 5 metres. This has now been reduced to 20 per cent. The provision of a 30 per cent tax increase for buildings having access to major roads has been done away with. The powers for fixing this hike are vested with the respective local body councils.
Buildings having access to a road with a width of less than 1.5 metres will get a 10 per cent and those that do not have proximity to a public road will get a 20 per cent tax concession.
The system of fixing tax on the basis of the nature of use of the building has also been scrapped.
Rented buildings, including pay homes, will not have to bear an additional tax burden now. While fixing the revised tax of a residential building on the basis of floor area ratio for the first time, the minimum hike has been put at 25 per cent of the existing rate and the maximum at 60 per cent.
While revising the tax of commercial buildings, the maximum limit should not exceed 150 per cent of the existing rates. Civic bodies will be empowered for a five per cent revision every year. The tax concession for multi-storeyed commercial and office buildings has been fixed at the following rates. The first floor above the ground level will be eligible for a 5 per cent concession of the prevailing tax rate. It has been fixed at 10 per cent for the second, 15 per cent for the third, 20 per cent for the fourth, 25 per cent for the fifth floor, and 25 per cent for each floor above the sixth floor.
The revision has been made in the wake of complaints from the public, the Minister said.
