| 1149 | ||
| PUNJAB GOVT. GAZ. (EXTRA), FEBRUARY 26, 2021 (PHGN 7, 1942 SAKA) | ||
EXTRAORDINARY
Published by Authority
CHANDIGARH, FRIDAY, FEBRUARY 26, 2021 (PHALGUNA 7, 1942 SAKA)
GOVERNMENT OF PUNJAB
DEPARTMENT OF LOCAL GOVERNMENT
(LG-3 Branch)
NOTIFICATION
The 14th February, 2021
No. 3/1/21-1 lg3/350/1.-Whereas, the Government of India has mandated that to avail additional borrowing limit of 0.25 % of GSDP and to avail the funding in other centrally sponsored schemes of MOHUA, floor rates for property tax in ULBs in consonance with the prevailing circle rates with a system to increase in floor rates in line with price increase need to be notified.
Whereas, the movement to a capital valuation system that links the property assessment rates to the prevailing collector rates, isbased on the formula given below-
Property Tax value = (Tax Base x Multiplicative Factor)
Tax Base = [(Plot area in sq. Yard x Collector Rate per square yard) + (Built-up area x Replacement
construction cost)]
Whereas, the multiplicative factor for various types of properties shall be as follows:
Type Multiplicative factor
Residential
0.02%
Commercial
0.1%
Industrial
0.1%
Whereas, initially it may be difficult for the Citizens to find out collector rates and pay the property tax.
As such an exercise has been made where properties have been grouped in different categories based on the collector rates. Using the representative collector rates of different categories, per square yard/ per square foot rates have been calculated using the multiplicative factor given in the table above.
Whereas, the state has also simplified the process of filing property tax return through initiatives like
( 1149 )PUNJAB GOVT. GAZ. (EXTRA), FEBRUARY 26, 2021 (PHGN 7, 1942 SAKA) 1150 online calculation of the demand, digital payments, assisted assessments through CFC centers and SewaKendras.
Service of Door to door collection of property tax is also being introduced.
Therefore, in exercise of the powers conferred by sub section(1) of section 97 of the Punjab Municipal Corporation Act 1976 ( Punjab Act No .42 of 1976),and in continuation of notification No2/4/2014-5lg3/379043/ 1, dated 31st December, 2014 (read with Notification No.2/4/2014-5lg3/469637/1, dated 24thApril ,2015 , No .2/ 4/2014-5lg3/714334/1,dated 16th March 2016 and No. 2/4/2014-5lg3/845413/1,dated 21st September 2016, the Governor of Punjab is pleased to order that:
1) the floor rates table under clause (4) in the said notification be read as under :-
USE Rate of tax as per classification and REMARKS
Category (in rupees)
Area A category B category
classi- cities cities
fication
1 2 3 4 5 6
Residential Area 1 5.00 Per Sq Yard 2.00 Per Sq Yard These rates are for built
houses For all except single up area of ground floor.
storey houses built Area 2 3.00 Per Sq Yard 1.00 Per Sq Yard For the basement, first
on land area up to floor, other floors and
125 square Yard Area 3 2 Per Sq Yard - vacant area, the rate will
be fifty per cent of the rates
specified in the column
no. 4/5.
Flats Having more than 500 Area 1 5.00 Per Sq Yard 2.00 Per Sq Yard
square feet super area Area 2 3.00 Per Sq Yard 1.00 Per Sq Yard -
Area 3 2.00 Per Sq Yard -
Having 100 square feet Area 1 4.00 Per Sq Ft 3.00 Per Sq ft These rates are for built
Commercial land or below Area 2 2.00 Per Sq Ft 1.50 Per Sq Ft up area of ground floor. For
buildings Area 3 1.75 Per Sq ft - the basement, first floor,
including Having 1000 square Area 1 5.00 Per Sq ft 4.00 Per Sq ft other floors and vacant
Restaurants feet land or below but Area 2 3.00 Per Sq ft 2.00 Per Sq ft area, the rate will be fifty
(except beyond 100 square Area 3 2.00 Per Sq ft - per cent of the rates
multiplexes, feet land specified in the column
malls, Having 1000 square feet Area 1 6.00 Per Sq ft 5.00 Per Sq ft no. 4/5.
marriage land or below Area 2 4.00 Per Sq ft 2.5 Per Sq ft
palaces) Area 3 3.00 Per Sq ft
Multiplexes, For All 15.00 Per Sq ft 10.00 Per Sq ft These rates are for Whole
malls etc. Areas Built-up Area Having
Distinct Roof and/or
partition and for all Floors.
PUNJAB GOVT. GAZ. (EXTRA), FEBRUARY 26, 2021 (PHGN 7, 1942 SAKA) 1151Marriage For All 6.00 Per Sq Yard 4.00 Per Sq Yard These rates are for Palaces Areas Whole area of Land.
Having 15 rooms of Area 1 6.00 per square ft 4.00 per square ft These rates will be for below (Without star, Area 2 5.00 per square ft 3.00 per square ft every built up area Hotels one star or two star) Area 3 4.00 per square ft - irrespective of the floor.
Having beyond 15 rooms Area 1 9.00 per square ft 8.00 per square ft There will be no tax on (Without or with) Area 2 8.00 per square ft 6.00 per square ft vacant land and
Area 3 7.00 per square ft - parking area.
Industrial (any Having 4000 square feet For all 5.00 Per Sq Yard 4.00 Per Sq Yard These rates are for built manufacturing land or below areas
up area of ground floor.
unit), Having 4000 square feet For all 7.50 Per Sq Yard 6.00 Per Sq Yard For the basement, first educational land or below areas
floor, other floors and institutions, and
vacant area, the rate will Godowns
be fifty per cent of the
rates specified in the
column no. 4/5.
Government Area 1 10.00 Per Sq Yard 4.00 Per Sq Yard These rates are for built Building Area 2 6.00Per Sq Yard 2.00Per Sq Yard up area of ground floor. For including Area 3 4.00 Per Sq Yard the basement, first floor, Buildings of
other floors and vacant Government
area, the rate will be fifty Undertakings,
per cent of the rates Boards or
specified in the column Corporations
no. 4/5.
Institutional
These rates are for built buildings ( other
up area of ground floor.
than educational
For the basement, first institutions,)
floor, other floors and including For all 7.5 Per Sq Yard 6 Per Sq Yard vacant area, the rate will community,
areas
be fifty per cent of the halls/centres,
rates specified in the sports stadiums,
column no. 4/5.
social club, bus
stands, golf
clubs, and such
like buildings
used for public
purpose
2) Cities shall be categorized as under : -
(a) Cities of Amritsar, Jalandhar, Ludhiana, Patiala and SahibzadaAjit Singh Nagar (Mohali)
– A Category
(b) All other cities -- B CategoryPUNJAB GOVT. GAZ. (EXTRA), FEBRUARY 26, 2021 (PHGN 7, 1942 SAKA) 1152 3) Each municipal area of A Category cities shall be classified in three areas ("Area1", Area 2" and "Area 3"). "Area1" shall include the posh area, "Area 2" shall be less posh/developed area, and balance area shall be classified as "Area 3". Municipal area of B Category cities shall be classified in two areas ("Area1" and "Area 2" ). "Area1" shall include the posh area, and balance area shall be classified as "Area 2". These classifications shall be finalized by a committee consisting of Secretary/Principal Secretary Local Government, Director Local Government (who shall be conveyer of the meeting), Mayor of the concerned City, Commissioner of the concerned municipal corporation and Deputy Commissioner of the concerned District in which the city falls. This classification shall be complete within the fortnight from the date of issue of notification and shall be published in the Punjab newspaper and also on notice boards of various places in the municipal area, by commissioner of the concerned municipal Corporation.
4) Area classification shall be strictly based on the collector rates.For A Category cities,Area1 shall be posh areas with higher collector rates; Area 2 shall be less posh / less developed areas with average collector rates; balance area shall be classified as Area 3. For B Category cities, Area1 shall be posh areas with higher collector rates; balance area shall be classified as Area 2.
5) Tax rates to increase by 5% annually and to be reviewed every 3 years to further rationalize based on the fresh collector rates.This shall be effective form the year 2021-22.
6) Process of filing property tax return shall be simplified through initiatives like online calculation of the demand, digital payments, assisted assessments through CFC centers and SewaKendras.
Service of Door to door collection of property tax shall also be introduced.
7) These rates shall be applicable to all Municipal Corporations in the state of Punjab.
This issues as per the approval accorded by the competent authority.
AJOY KUMAR SINHA, IAS,
Chandigarh
Principal Secretary to the Government of Punjab, The 14th February, 2021 Department of Local Government.