After a gap of more than two decades, the property tax structure in Kozhikode city is being revised for all residential, industrial and commercial buildings from this fiscal.
Last year, the city corporation council approved an agenda revising the tax with retrospective effect from April 1, 2013 based on the guidelines of the State government. “The new structure is already in force for new buildings. Now, residents who have been remitting the tax based on the old system have been asked to submit the self assessment forms at the corporation office by July 31,” Mayor Thottathil Raveendran told The Hindu on Wednesday.
Property tax is one of major revenue earners for the civic body. “The revised tax should have been implemented from 1994 itself. It remained postponed for numerous reasons such as objections from residents and elections. The revision of tax is a must for undertaking development activities,” Mr. Raveendran pointed out.
The changes will take place in about 2 lakh households including those in erstwhile merged grama panchayats of Beypore, Elathur and Cheruvannur-Nallalam. A four-part assessment form has been distributed to all households. Owners should calculate the property tax on the carpet area of the building and not the annual rental value.
Several factors have been taken into consideration for assessment of tax. The city has been divided into primary, secondary and tertiary zones. An area which has a government or a quasi-government office, educational institution, commercial complex, market, bus station, railway station and hospital will be in the primary zone. The places surrounding a primary zone with potential to evolve into developed areas will be in the secondary zone. Areas that do not come under either category will be in the tertiary zone. The general tax rate fixed for an area in the primary zone is in the range of ₹8 to ₹20 a square metre (1 sq.m. = 10.76 sq.ft.) for residential buildings; ₹.60 to ₹90 for commercial buildings within 100 sq.m. and ₹20 to ₹40 for industries. The minimum rate for commercial building is ₹90 per square metre, ₹100 for supermarkets and shopping malls, ₹60 for office buildings and for other uses under the industrial sector.
Buildings in secondary zones will get 10% concession on rates and those in the tertiary zone will get 20% concession. At the same time, concessions have been given on the basis of the locality of the building and the materials used, including roofing and flooring types, age and carpet area.