| 1894 | ||
| 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. 3/2/21-1lg3/351/1.-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, is based on the formula given below-
Property Tax value = (Tax Base x Multiplicative Factor)
Tax Base = [(Plot area in sq. yards x Collector Rate per square yard) + (Built-up area x Replacement
construction cost)]
Wheras, 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 yards/ square foot rates have been calculated using the multiplicative factor given in Table above.
( 1894 )PUNJAB GOVT. GAZ. (EXTRA), APRIL 26, 2021 (VYSK 6, 1943 SAKA) 1895 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 rates (in rupees) REMARKS
Area B category C category
classification cities cities
1 2 3 4 5 6
Residential For all except Area 1 2.00 Per Square 1.00 Per Square These rates are for built
houses single storey Yard Yard up area of ground floor. For
houses built on Area 2 1.00 Per Square 0.50 Per Square the basement, first floor,
land area up to Yard Yard other floors and vacant
125 square Yard area, the rate will be fifty
per cent of the rates
specified in the column
no. 4/5.
Residential Having more Area 1 2.00 Per Square 1.00 Per Square -
Flats than 500 square Yard Yard
feet super area Area 2 1.00 Per Square 0.50 Per Square
Yard Yard
Commercial Having 100 Area 1 3.00 Per Square Ft 2.00 Per Square Ft These rates are for built buildings square feet land Area 2 1.50 Per Square Ft 1.00 Per Square Ft up area of ground including or below
floor. For the basement, Restaurants
first floor, other floors and (except Having 1000 Area 1 4.00 Per Square Ft 2.00 Per Square Ft vacant area, the rate will Multiplexes, square feet Area 2 2.00 Per Square Ft 1.00 Per Square Ft be fifty per cent of the rates malls, marriage land or below
specified in the column palaces) but beyond 100
no. 4/5.
square feet land
Having beyond Area 1 5.00 Per Square Ft 3 Per Square Ft
1000 square Area 2 2.50 Per Square Ft 1.50 Per Square Ft
feet land
Multiplexes, - For All Areas 10.00 Per Square Ft 8.00 Per Square 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 4.00 Per Square 2.00 Per Square These rates are for Whole
Yard Yard area of Land.
Industrial (any Having 4000 For all areas 4.00 Per Square 3.00 Per Square These rates are for built manufacturing square yards Yard Yard 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) 1896 institutions, and Having beyond For all areas 6.00 Per Square 4.50 Per Square other floors and vacant Godowns 4000 square Yard Yard area, the rate will be fifty yards land
per cent of the rates
specified in the column
no. 4/5.
Government Area 1 4.00 Per Sq Yard 2.00 Per Sq Yard These rates are for built Building including Area 2 2.00 Per Sq Yard 1.00 Per Sq Yard up area of ground floor. For Buildings of
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 6.00 Per Sq Yard 4.50 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) 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.
PUNJAB GOVT. GAZ. (EXTRA), APRIL 26, 2021 (VYSK 6, 1943 SAKA) 1897 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.