The Finance standing committee of the City Corporation has cleared a proposal to revise the property tax under a new system of assessment based on plinth area instead of the annual rent.
The committee last week approved the proposal fixing the taxation rate at Rs.16 per sq. ft of built-up space.
The tax amount will be assessed on the basis of several additional factors such as the zone in which the building is located, type of roof, flooring and walls, age of the building and the purpose for which it is used, and distance from the road. The city has been divided into three zones for tax assessment, with 24 wards falling within the primary zone, 27 wards in zone two and 49 in zone three.
Slab system
A slab system will be used for assessment based on the additional factors. Buildings rented out for various purposes will be taxed separately. While there will be no exemption for houses falling in zone one, those in zone two will be eligible for 10 per cent relaxation, and the rate for those in zone three is fixed at 20 per cent. The finance committee has decided to do away with the service tax covering drainage and water supply.
The meeting authorised the corporation engineer to prepare a map of the road network in the city within one week. The house numbers in the city will be revised soon.
The committee has mooted a self-assessment system with a checklist to be issued to house owners.
A committee member said the proposal would be presented before the Corporation council on Thursday for approval. A notification would be issued soon after.
The committee, however, deferred a proposal for a steep hike up to eight times the current rate for trade licence.
