The Hindu 22.09.2009
New property tax rate may be approved next month
Staff Correspondent
| The prevailing rate of tax under SAS is 2 per cent |
The issue is said to have been discussed with officers concerned
Commercial, non-residential buildings to be divided into 11 categories
MANGALORE: Mayor M. Shankar Bhat is hopeful of getting the State Government’s approval for the property taxes, which were revised by the council of the Mangalore City Corporation under the self assessment scheme (SAS), by mid-October.
The council of the civic body in its June 30, 2009 meeting revised the tax rates (stated as per cent of the capital value) under the self-assessment tax, implemented by the then administrator of the corporation on April 1, 2008.
Meeting
Mr. Bhat told The Hindu that he, along with V. Ponnuraj, Deputy Commissioner of Dakshina Kannada, and K.N. Vijayaprakash, Commissioner of the corporation, had attended a meeting with Javed Akhtar, Secretary, Department of Urban Development, in Bangalore on September 16 to discuss various matters concerning the civic body. The matters related to the SAS were also discussed during that meeting, he added.
Stating that certain aspects related to the revision had been clarified to the Secretary, Mr. Bhat said that the department would soon be placing the proposal before Cabinet for approval.
It was likely to be placed in the next Cabinet meeting, he added. “I am hopeful that the Government will approve the revised rates by mid-October,” the Mayor said.
While revising the tax rate for commercial and non-residential buildings, the council had reduced the rate from the present 2 per cent to a minimum of 0.5 per cent and a maximum of 1.5 per cent.
The prevailing rate is 2 per cent across the board.
As per the revised rates, the property tax for commercial and non-residential buildings will be divided into 11 categories, based on the purpose for which the buildings are meant to be used. Different rates have been proposed for each floor of multi-storied buildings.
Residential buildings
The tax rate for residential buildings now stands at 0.6 per cent across the board. There is no minimum or maximum rate.
Minimum rate
The council has revised it to a minimum of 0.3 per cent and a maximum of 0.8 per cent, depending on the plinth area. The proposed rates are: 0.3 per cent up to 500 sq. ft. area; 0.4 per cent between 500 sq. ft. and 1,000 sq. ft.; 0.5 per cent from 1,000 sq. ft. to 2,000 sq. ft.; 0.6 per cent between 2,000 sq. ft. and 3,000 sq. ft.; 0.7 per cent from 3,000 sq. ft. to 4,000 sq. ft.; and 0.8 per cent for about 4,000 sq. ft.
Vacant sites
Vacant sites have been divided into three categories. They are: totally residential locality; high-density commercial locality; and medium density commercial locality.
The tax rate for vacant sites measuring up to 25 cents of land in a residential locality has been fixed at 0.1 per cent. It will be 0.15 per cent in medium-density commercial locality; and 0.2 per cent in high density commercial locality.
Owners of vacant sites of more than 25 cents will have to pay 0.1 per cent to 0.2 per cent for the first 25 cents of land, depending on the density of the locality. For the rest of the area, they will be charged at 0.01 per cent to 0.1 per cent.
Minister’s visit
The Mayor said that Minister for Urban Local Bodies S. Suresh Kumar was scheduled to visit Mangalore on Friday.
