Rise in tax by 65 pc on residential; 128 pc on commercial properties

Lokmat News Network

Chhatrapati Sambhajinagar: The Chhatrapati Sambhajinagar Municipal Corporation (CSMC) has decided to levy property tax upon new properties as per the state government’s Annual Rental Value (ARV) system, from April 1.

Earlier, the property-holder was paying 3,593 property tax for his house built on 500 square feet. Now, there is an increase in tax by 65 per cent, and he will have to pay Rs 5,941 (every year), hereafter.

Besides, for the same size of commercial property, the tax was Rs 14,000. It is now hiked by 128 per cent and he will have to shell out Rs 31,924 property tax, said the municipal commissioner G Sreekant while addressing the newsmen.

The civic chief, however, made it clear that the old properties (2.5 lakh) are not included in the new property tax structure. Hence after April 1, the new tax would be levied upon those specific properties, where property-holders volunteer themselves to levy tax upon their properties. Hence there is no need for the citizens and the traders to panic.

As per norms, the property tax has to be revised after every five years, but the CSMC has not revised it since 2012. As of today, many properties are out of property tax ambit. The CSMC is conducting ‘Samadhan Shibir’ on ward-level under guidance of deputy commissioner.

On Friday, a society comprising 110 properties in Harsul, got levied the property tax on their properties as per the old tax system. This opportunity is valid till March 31, it is learnt.

The civic chief underlined that the educational societies will also get concession in tax on submission of necessary documents relating to the charity commissioner. He suggested them not to evade tax in the name of giving education and educating students. He confirmed that the properties of tax-evaders will be seized and later on auctioned.

Concession to online tax payment

Earlier, the CSMC was offering concession in general tax to citizens paying their current year’s property tax in the first three months (April to June). Now, the concession will be given only if the tax is paid online. There will be 10 percent concession in the general tax if the property tax is paid in April, 8 pc in May and 6 pc in June.

No tax waiver to Ex-servicemen

Earlier, there was no property and water taxes upon properties of the freedom fighters and ex-servicemen. It will now be stopped. The concessions to them will be only in general tax not in the whole property tax. The water tax will not be waived-off at any cost.

Box

New, Old tax rates on per square feet (PSF) basis

Old Rate — RCC structure-------------Other type of structure

Residential – Rs.11----Rs.9

Commercial– Rs.28-----Rs.18

Non-Residential – Rs.22----Rs.15

New Rates – RCC structure-------------Other type of structure

Residential– Rs.19----Rs.14

Commercial – Rs.47--------Rs.31

Non-Residential – Rs. 37-----Rs. 24

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7-star grading scheme

The CSMC has introduced a 7-star grading scheme for the first time.

1 star : To properties planting trees inside the campus of property.

2 star: To properties segregating dry and wet garbage.

3 star : To properties installing rainwater harvesting system.

4 star : To properties relying on solar energy.

5 star : To properties where occupants are using e-vehicles (car or motorcycle).

6 star : To properties registered in the name of women.

7 star : To property-holders paying cent percent property and water taxes.

There will be 10 pc concession in property tax to 7-star rated properties; 08 pc to 6-star rated properties and 6 pc to 5-star rated properties.