Residential and commercial properties, situated within the limits of Corporation, are assessed for tax. Property Tax is tax on immovable or tangible real property such as land, buildings and permanent improvements. Based on such assessments, all assessees are expected to pay the Property Tax. A municipal body can impose, suspend or abolish the tax or partly/wholly exempt person or class of persons, of any such tax on any property or description of property by a resolution passed at a special meeting and confirmed by the state government. Property Tax may comprise of basic building tax plus service taxes such as library cess. It is rated as the single most important local tax. Frequency of Property Tax collection is half yearly. Property tax is assessing taxable property to arrive at the tax to be levied. Assessment can be initiated by a citizen request or it can be initiated by the Revenue Department. Assessment of property and numbering of building is the responsibility of revenue department, and based on this assessment the tax for the property is fixed. After the owner receives the assessment notice, it is the responsibility of the citizen to pay the property tax on time. Citizens can also apply for review petition.
Inclusion of New Assessee (Issuance of Door No. and Assessing the Tax)
Inclusion of New Assessee is the process of adding a new owner's name to the Assessment Register. This can be due to new building construction, a partition, a will, gift deed, bifurcation, amalgamation. Citizen can apply for issuance of Door No. for their property by submitting an application form affixed with Court fee stamp (Rs.5/-) on it. Citizen needs to furnish the occupancy certificate issued by Town planning department as supporting document. Based on the application and field verification by the Revenue Inspector, property tax will be assessed and Door Number will be issued within 15 working days from the date of application.
Property Tax Assessment
The Corporation will initiate the Tax Assessment process in the following cases: When the property is to be assessed for the first time – Initial Assessment. When there is an enhancement to assessment of property tax due to general revision
A citizen if not pleased with the assessed property tax has the right to submit a review petition addressing Secretary to relook and revise his property tax. Such requests should be submitted to Secretary within 30 days after receiving tax notice. Otherwise has to produce Government Order condoning delay in filing RP after the date (special reasons). For filing petition assessee should have paid the property tax as per the special notice. Corporation will provide a decision on the petition within 30 working days from the date of submission of application.
An assessee initiates Revision Petition in the following three cases
1. When the property has been assessed for the first time – Initial Assessment
2. When there is a special notice served through an enhancement of assessment of property tax due to general revision
3. When there is a new special notice served due to un-authorized reconstruction of, or improvements or additions to buildings or by any clerical or arithmetic error etc
Property Tax Collection
Once the property is assessed Corporation serves a five-year demand bill with property tax amount details. It is the responsibility of the citizen to pay the tax on time, and it is the duty of the Revenue department to collect the same. Bill collectors would collect the amount from citizens in person or Citizen pays the tax amount though CSC counters.
Property Tax demand is generated twice in an year. It should be paid before April 30 and October 30. Otherwise 1% interest will be charged on monthly basis.
Tax Assessment of Unauthorised Construction
No citizen should undertake any construction activities without obtaining necessary building permit from Town Planning Department. It is strictly unauthorised and such construction would be treated as unauthorised construction. If the corporation finds that a building under their jurisdiction is unauthorised, or the land on which the building is erected is ‘purampokku' land, a memo is issued to the owner to regularise the building with immediate effect, else it may lead to demolition of the building. The information is also passed to town planning department for taking strict action against the violator and ensure regularization/demolition of such building. In the mean time the assessment process of such building would be duly conducted; the RI conducts the field verification to find the Plinth Area and submits the proposal. Finally tax and the penalty is calculated (currently the tax is three times the normal value) payable by the citizen even if the building gets demolished due to failure in regularising the building