In the wake of implementing new tax regulations, a city with around 4.8 lakh property taxpayers received just one complaint during the objection period. This singular complaint, submitted via email, expressed general concerns about increased tax rates. The revised tax structures primarily affect larger residential properties, commercial establishments, shopping complexes, and other entities. The state government mandated a five percent annual property tax increase for five years, along with adjustments based on revised foundational tax rates. Notably, government office buildings witnessed a significant reduction in basic tax rates, while commercial real estate faced varying adjustments. This comprehensive revision marks an increase in the city's annual property tax demand.
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Amidst the expansive realm of the city's property taxpayers, which boasts a substantial count of 4.8 lakhs, the municipal authority has encountered a solitary grievance amidst the implementation of new tax regulations. In a council session convened on the 5th of August, the city council granted approval to a comprehensive proposal that outlined revised tax structures and tiers. Subsequently, the process of receiving complaints and objections commenced on August 6. The deadline for submitting complaints was fixed on the 23rd of August. During this specified period, the municipal body received only one complaint via email, expressing general concerns regarding the escalation of tax rates.
These newly revamped rates are poised to increase the property tax burdens for residential properties exceeding 300 square meters, commercial establishments, shopping complexes, inns, resorts, hotels, and private hostels. The state government has mandated an annual 5 percent increment in property taxes in addition to the adjustments based on the revised foundational tax rates. This increment will persist for five consecutive years in compliance with recommendations from the finance commission. While the municipal authority has retained the basic tax rate of Rs 16 per square meter for residential constructions up to 300 square meters, it has raised the basic tax rate to Rs 20 per square meter for residential buildings exceeding 300 square meters.
The determination of these foundational tax rates has been meticulous, adhering to the predefined slabs set forth by the local self-government department. Government office buildings, for instance, are now categorized within a range that spans from Rs 10 to Rs 22 per square meter. An exceptional act of financial prudence by the municipal body is the significant reduction in the basic tax rate for government office buildings, which has been revised from a hefty Rs 80 per square meter to a more judicious Rs 22. The impact of the tax revisions extends beyond the boundaries of residential properties; commercial real estate will also experience an upswing in property taxes. Structures encompassing up to 100 square meters are poised to bear a basic rate of Rs 90 per square meter, marking a modest increase from the former Rs 80.
Meanwhile, commercial edifices spanning the spectrum of 100–5000 square meters shall witness a slight increment, with the rate ascending from Rs 110 to Rs 120 per square meter. Shopping complexes will now face a rate of Rs 170 per square meter, an increase from the previous Rs 150. Conversely, the tax burdens for huts and makeshift establishments have been adjusted sensibly from Rs 80 to a more equitable Rs 22. Furthermore, industrial structures will experience a reduced basic tax rate. Lodges and hotels boasting dimensions exceeding 300 square meters are slated to be subject to an assessment rate of Rs 90 per square meter, an increase from the prior rate of Rs 60.
The last comprehensive revision of tax rates took place in 2016, with the year 2021 experiencing an exceptional hiatus due to the omnipresent COVID-19 pandemic. The inception of these new foundational tax rates heralds a notable escalation in the annual property tax demand within the city.
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