District rate as a key factor in property value
* Step to help in obtaining Rs 503 Cr Addl Bonds from GoI
JAMMU, Feb.15: In a move that may not be welcomed by the people, but has become a compulsion to borrow additional loans from the center, the government of the territory of the Union of Jammu and Kashmir has an exercise to introduce property tax by Urban Local started bodies (municipal bodies, local councils and community committees).
In addition, the Property Tax Board will shortly be formed on the recommendation of the Housing and Urban Development Department to deal with all aspects of the appraisal and valuation of real estate throughout the Union.
This can be seen in the communication dated February 12, 2021, issued by Dheeraj Gupta, Chief Secretary of the Government, Housing and Urban Development Department, a copy of which is available from EXCELSIOR.
"In exercising the powers conferred by the Jammu and Kashmiri Land Tax Administration Act of 2013, the Jammu and Kashmir City Government Act of 2000, and the Jammu and Kashmir Municipal Corporation Act of 2000, the government ordains Herewith the collection of property tax on For each property or building, the value of the property, as stated in accordance with the rules for the preparation and revision of the Jammu and Kashmir Market Value Directive, 2011 (district rate), in addition to the type of construction, is an important determinant for the value of the property, type of use, age of the property or other relevant considerations, ”the communication says.
The property tax authority or, if applicable, the city administration, the municipal council or the relevant municipal committee ensure that the value of the property reported in this way is adequately taken into account when determining the area unit values for the collection of property tax.
“The introduction of the property tax is one of the conditions set by the Indian government for the use of 2% additional loans under Atma Nirbhar Bharat Abhiyan. This issue has been discussed in several meetings of the Secretariat Committee chaired by Secretary General BVR Subrahmanyam in the recent past, ”sources said, adding“ with the introduction of property tax, the J&K government could receive Rs 503 crore from the Indian government ”.
In October last year, the Union Interior Ministry (MHA) authorized the government of the territory of the Union of Jammu and Kashmir to collect property taxes through the local bodies, councils and committees in their respective areas.
The powers were conferred by several amendments to the Jammu and Kashmir Municipal Act of 2000 and the Jammu and Kashmir Municipal Corporation Act of 2000 implemented by the Jammu and Kashmir Reorganization (amendment of state laws) of 2020.
In the J&K Municipal Act of 2000, which established the local councils and committees, the Home Office replaced Sections 72 through 80, and the new Section 72 states, “Except as provided by this Act or any other law currently in force The property tax is levied on all land and buildings or undeveloped land or both within the municipality. Property tax is levied at a percentage that does not exceed 15% of the annual taxable value of land and buildings or vacant land, or both, as the government may determine by notice from time to time. "
Similarly, Section 73 reads: "The annual taxable value of land and buildings or vacant land that is taxable under this Act is calculated by multiplying the corresponding unit area value by the total construction area of a building or the total area, if applicable, minus depreciation to each rates prescribed by the age of the building. "
However, a reservation was made whereby the municipality can, after a resolution has passed, set a lump sum that does not exceed the amount payable as annual tax for certain categories of property. However, the decision will only take effect after it has been approved by the government.
The property tax payable will be reduced by 25 percent for a owner-occupied building used for residential purposes and a class of owner-occupied non-residential building that may be disclosed by the government on the recommendation of the municipality. In addition, there is a provision that a person who is required to pay property tax pays it in two equal installments.
"Every owner or user who is obliged to pay property tax must submit a return to the executive employee or an officer authorized by him on this behalf every year in the prescribed form within the specified period and in the prescribed manner," it says new Sections read. In addition, it is planned to check the returned item and to initiate measures in the event of non-compliance.
Similar provisions have also been incorporated through amendments to the Jammu and Kashmir Municipal Enterprises Act, which established the Jammu and Srinagar Municipal Enterprises.
Under the Jammu and Kashmir Property Tax Board Act, the Government may, by notice, establish the Board, which is a corporation and has the power to acquire, hold and dispose of movable and immovable property in order to enter into contracts and take all necessary action to seize the purposes of the law.
The board of directors consists of a chairman and a number of members set by the government, not exceeding two. The chairman is the person who is or has been a government official who is not below the rank of commissioner / secretary.
The other members are people with knowledge and experience in the areas of local government, property valuation, accounting, law and administration.