The Hindu                      12.03.2013

Property tax rates, rules revised

Special Correspondent 

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.

The Times of India                    11.03.2013

Govt yet to clear way for Rajarhat tax collection

KOLKATA: It has been nearly a year since the state urban development department first came up with a proposal for the New Town Kolkata Development Authority (NKDA) to start collecting property tax from the residents of Rajarhat New Town. However, even as the township is developing and more and more people are coming to live in the area, the state government is yet to implement the proposal.

Senior Hidco officials said some legal amendments need to be made for the NKDA to start collecting property tax in the township and that the process has already started. However, they could not give any time limit within which the amendments will come into effect. "The proposal needs to be approved in the state cabinet for the bill to get passed," said an official.

At present, the residents of Rajarhat do not pay property tax. The state urban development department had earlier mooted the proposal in the state cabinet that NKDA be entrusted with collecting it. However, the proposal was deferred and the department was first asked to make some amendments in the New Town Kolkata Development Act so that it can be authorized to act like a municipality or corporation and hence, be able to collect tax. Right now, New Town does not fall under any municipality or corporation and NKDA acts as the local civic body.

However, the new township is still lacking in basic civic services, complain residents. Grievances include irregular cleaning of garbage, traffic chaos due to unplanned car parking and those related to law-and-order and water supply. "We are quite eager to pay the tax provided we get these civic amenities," said Samir Mitra, a resident of Greenwood Park Housing in Action Area I.

In neighbouring Salt Lake, the Bidhannagar Municipality has finally started collecting property tax based on the valuation done in 2005. At the end of the last fiscal, the authorities had collected around Rs 12 crore since resuming collection.