| 1890 | ||
| PUNJAB GOVT. GAZ. (EXTRA), APRIL 26, 2021 (VYSK 6, 1943 SAKA) | ||
EXTRAORDINARY
Published by Authority
CHANDIGARH, MONDAY, APRIL 26, 2021 (VAISAKHA 6, 1943 SAKA)
To be substituted by Notification bearing same date and No.
GOVERNMENT OF PUNJAB
DEPARTMENT OF LOCAL GOVERNMENT
(LG-3 Branch)
NOTIFICATION
The 14th February, 2021
No. 3/1/21-1lg3/350/1.-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, is based 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 online calculation of the demand, digital payments, assisted assessments through CFC centers and Sewa Kendras.
( 1890 )PUNJAB GOVT. GAZ. (EXTRA), APRIL 26, 2021 (VYSK 6, 1943 SAKA) 1891 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 No. 2/4/2014- 5lg3/379043/1, dated 31st December, 2014 (read with Notification No. 2/4/2014-5lg3/469637/1, dated 24th April, 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 Category (in rupees) REMARKS
Area A category B category
classification cities cities
1 2 3 4 5 6
Residential For all except Area 1 5.00 Per Sq Yard 2.00 Per Sq Yard These rates are for built
houses single storey up area of ground floor. For
houses built on Area 2 3.00 Per Sq Yard 1.00 Per Sq Yard the basement, first floor,
land area up to other floors and vacant
125 square Yard Area 3 2 Per Sq Yard - area, the rate will be fifty
per cent of the rates
specified in the column
no. 4/5.
Flats Having more Area 1 5.00 Per Sq Yard 2.00 Per Sq Yard -
than 500 square Area 2 3.00 Per Sq Yard 1.00 Per Sq Yard
feet super area Area 3 2.00 Per Sq Yard -
Commercial Having 100 Area 4.00 Per Sq Ft 3.00 Per Sq ft These rates are for built
buildings square feet land Area 2 2.00 Per Sq Ft 1.50 Per Sq Ft up area of ground
including or below Area 3 1.75 Per Sq ft - floor. For the basement,
Restaurants first floor, other floors and
(except Having 1000 Area 1 5.00 Per Sq ft 4.00 Per Sq ft vacant area, the rate will
multiplexes, square feet Area 2 3.00 Per Sq ft 2.00 Per Sq ft be fifty per cent of the rates
malls, marriage land or below Area 3 2.00 Per Sq ft - specified in the column
palaces) but beyond 100 no. 4/5.
square feet land
Having beyond Area 1 6.00 Per Sq ft 5.00 Per Sq ft
1000 square Area 2 4.00 Per Sq ft 2.5 Per Sq ft
feet land Area 3 3.00 Per Sq ft
Multiplexes, For All Areas 15.00 Per Sq ft 10.00 Per Sq ft These rates are for Whole
Malls etc. Built-up Area having
Distinct Roof and/or
partition and for all Floors
Marriage Palaces For All Areas 6.00 Per Sq Yard 4.00 Per Sq Yard These rates are for Whole
area of Land
Industrial (any Having 4000 For all areas 5.00 Per Sq Yard 4.00 Per Sq Yard These rates are for built
manufacturing square yards up area of ground floor. For
unit), educational land or below the basement, first floor,
PUNJAB GOVT. GAZ. (EXTRA), APRIL 26, 2021 (VYSK 6, 1943 SAKA)
1892
institutions, and Having beyond For all areas 7.50 Per Sq Yard 6.00 Per Sq Yard other floors and vacant Godowns 4000 square
area, the rate will be fifty yards land
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 including Area 2 6.00Per Sq Yard 2.00Per Sq Yard up area of ground floor. For Buildings of Area 3 4.00 Per Sq Yard the basement, first floor, Government
other floors and vacant Undertakings,
area, the rate will be fifty Boards or
per cent of the rates Corporations
specified in the column
no. 4/5.
Institutional For all areas 7.5 Per Sq Yard 6 Per Sq Yard These rates are for built buildings ( other
up area of ground floor. For than educational
the basement, first floor, institutions, )
other floors and vacant including
area, the rate will be fifty community, halls/
per cent of the rates centres, sports
specified in the column stadiums, social
no. 4/5.
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 Sahibzada Ajit Singh Nagar (Mohali) – A Category
(b) All other cities --B Category
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, "Area2" 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 PUNJAB GOVT. GAZ. (EXTRA), APRIL 26, 2021 (VYSK 6, 1943 SAKA) 1893 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 Sewa Kendras. 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.