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| 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. 3/2/21-1 lg3/351/1.-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.
Assuch an exercise has been madewhere properties have been grouped in different categories based on the collector rates. Using the representative collector rates of different categories per square yards/ square foot rates have been calculated using the multiplicative factor given in Table above.
( 1153 )PUNJAB GOVT. GAZ. (EXTRA), FEBRUARY 26, 2021 (PHGN 7, 1942 SAKA) 1154 Whereas, state has also simplified the process of filing property tax return 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 is also being introduced.
Therefore, in exercise of the powers conferred by sub clause (ii) of clause (a) of sub section(1) of section 61 of the Punjab Municipal Act 1911 ( Punjab Act No. 3 of 1911), and in continuation of notification No.2/4/2014-5lg3/379043/1, dated 31st December, 2014 (read with Notification No.2/4/2014-5lg3/379042/1, dated 24th April, 2015, No. 2/4/2014-5lg3/714250/1, dated 16th March 2016,No .2/4/2014-5lg3/845389/1, 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
rates (in rupees)
Area B category C category
classi- cities cities
fication
1 2 3 4 5 6 Residential Area 1 2.00 Per 1.00 Per These rates are for built houses For all except single square yard square yard up area of ground floor.
storey houses built Area 2 1.00 Per 0.50 Per For the basement, first on land area up to square yard square yard floor, other floors and 125 square Yards
vacant area, the rate will
be fifty per cent of the
rates specified in the
column no. 4/5.
Flats Having more than 100 Area 1 2.00 Per 2.00 Per - square feet super area square yard square yard
Area 2 1.00 Per 0.50
square yard
Having 100 square feet Area 1 3.00 Per square Ft 2.00 Per square ft These rates are for built
Commercial land or below Area 2 1.50 Per square Ft 1.00 Per square Ft up area of ground floor.
buildings For the basement, first
including Having 1000 square Area 1 4.00 Per square ft 2.00 Per square ft floor, other floors and
Restaurants feet land or below but Area 2 2.00 Per square ft 1.00 Per square ft vacant area, the rate
(except beyond 100 square will be fifty per cent of
multiplexes, feet land the rates specified in
mails, Having 1000 square feet Area 1 5.00 Per square ft 3 Per square ft the column no. 4/5.
Multiplexes, land Area 2 2.50 Per square ft 1.50 Per square ft
malls,
marriage
palaces)PUNJAB GOVT. GAZ. (EXTRA), FEBRUARY 26, 2021 (PHGN 7, 1942 SAKA) 1155 Multiplexes, For All 10.00 Per 8.00 Per These rates are for malls etc. Areas square ft square ft Whole Built up area
having distinct roof
and/or partition and for
all Floors.
Marriage For All 4.00 Per 2.00 Per These rates are for Palaces Areas square yard square yard whole area for Land.
Having 15 rooms of Area 1 4.00 per square ft 2.00 per square ft These rates will be for below (Without star, Area 2 3.00 per square ft 1.5 per square ft every built up area Hotels one star or two star)
irrespective of the floor.
Having beyond 15 rooms Area 1 8.00 per square ft 7.00 per square ft There will be no tax on (Without or with) Area 2 6.00 per square ft 5.00 per square ft vacant land and
parking area.
Industrial (any Having 4000 square feet For all 4.00 Per 3.00 Per These rates are for built manufacturing land or below Areas square yard square yard up area of ground floor.
unit), Having 4000 square feet For all 6.00 Per 4.50 Per For the basement, first educational land or below areas square yard square yard floor, other floors and institutions, and
vacant area, the rate will Ggodowns
be fifty per cent of the Undertakings,
rates specified in the boards or
column no. 4/5.
corporations
Government
These rates are for built Building
up area of ground floor. For including
the basement, first floor, Buildings of Area 1 4.00 Per Sq Yard 2.00 Per Sq Yard 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.
Area 2 2.00 Per Sq Yard 1.00 Per Sq Yard
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 6.00 Per Sq Yards 4.50 Per Sq Yards 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
purposePUNJAB GOVT. GAZ. (EXTRA), FEBRUARY 26, 2021 (PHGN 7, 1942 SAKA) 1156 2) Cities shall be categorized as under : -
(a) All Class I Municipal Councils - B Category
(b) All Class II Municipal Councils,
Class III Municipal Councils and all Nagar Panchayats-C Category
3) Each municipal area shall be classified in three areas ("Area1", 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 Director Local Government, President or Administrator of concerned Municipality, Executive officer of the concerned Municipality and concerned Regional Deputy Director Local Government, who shall be conveyer of the committee. 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 the Executive officer of the concerned municipality.
4) Area classification shall be strictly based on the collector rates. Area1 shall be posh areas with higher collector rates; the 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 Councils and Nagar Panchayats 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.