Municipal Administration

Directorate of Municipal Administration

Resource Mobilisation

Property Tax

(Rs. in Crore)

2009-10(*Aug 09)

189.20

91.39*

Present taxation system

Taxable capital value of land & building should be equivalent of 50% of market value

Residential buildings and buildings other than commercial should be levied not less than 0.3% & not more than 1%

Max. limit of property tax to be levied in case of residential buildings where population is below one lakh is 0.6%

Commercial buildings should be levied not less than 0.5% and not more than 2%

Max.limit of property tax to be levied in case of commercial buildings where population is below one lakh is 0.9%

No property tax should be levied for vacant lands where population is below one lakh

Land appurtenant to building exempted from property tax in all urban areas

Once tax rate is fixed, remains constant for 3 years

Municipal council to enhance property tax from 15% to 30% once in every 3 years commencing from the FY 2005-06