Kerala - Kozhikode   

Civic body to bring in new property tax norms

Kozhikode: The Kozhikode Corporation is planning to introduce a new system for collection of property tax in the city, based on the carpet area of the building. Councillors are expected to give approval to the recommendations of the Finance Standing Committee, which took this decision in January this year, at the City Corporation Council meeting here on Saturday.

Officials said that the Finance Committee had prepared a zonal map for the 55 wards of the Corporation. The tax would be fixed in compliance with the guidelines issued by the State government. Property tax is levied under Section 233 of the Kerala Municipality Act.

The revised rates will be in the range of Rs.8 to Rs.20 per metre square in the case of residential buildings; Rs.16 to Rs.40 per metre square for industries and Rs.32 to Rs.160 per metre square for commercial purposes. However, in the first year, rates in the range from Rs.8 to Rs.12 will be made applicable to residential buildings.

The new tax regime will be enforced on the basis of the locality of the building — whether it is situated on the National Highway, State highway, first grade roads ascertained by the civic body, district roads and second grade roads in the city.

The revision will streamline fixing of property tax in the city. Now, rate is fixed according to the whims of the revenue inspector. The Corporation has been flooded with complaints in this regard. Besides, all property taxes fixed by them are challenged before the Appeals Committee.

With the new system, the residents can easily calculate the property tax of their houses. The Corporation also plans to introduce number plates for buildings.

The Corporation also expects an increase by at least 15 per cent in the revenue by way of hiking of property tax. The budget for 2008-2009 of the Corporation expects an income of Rs.18.5 crore from property tax collection.

Officials said that the Finance Committee had also decided to hike the property tax on residential buildings located on some roads in the city to Rs.12 per square metre. The proposal is to make the rates effective from April 1, 2007 for the next four years.

The new property tax will be valid for houses located on Meenchanda Bypass; National Highway stretching from Kallai to Bypass; east of Meenchanda exempting the slum areas; Chakkorathukulam; East Hill Road; east and west of Eranhipalam- Karaparamba road exempting the Sastri Nagar colony; Karaparamba- Karikkamkulam Florican Road; Sales Tax Office road, Cherotty Nagar road; Planetarium road and U.K.S. road. These roads will be included in the primary zone, officials said.

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