Amendment status not verified — confirm the current text below against the official source.
(1) Every Council of the Municipality shall, in accordance with the provisions of this Act and the rules as may be prescribed, levy property tax on every building (including the land appurtenant thereto) situated within the area of the respective Municipality and not exempted as per the provisions of the Act. (2) (a) For the purpose of levying property tax, the Government shall, by notification, fix the minimum and maximum limits of rates of basic property tax applicable to one square meter plinth area of the following categories of building in accordance with the use and the date on which they shall come into force, namely: - (i) used for residential purpose; (ii) used for industrial purpose; (iii) used for Schools and Hospitals; (iv) used for amusement parks, mobile telephone tower etc.; (v) used for commercial purpose; (vi) used for other purposes; (vii) Any other category of building notified by the Government. (b) The Government may by notification fix the sub-categories of each category of building from (i) to (vii) above and the minimum and the maximum limits of rates of basic property tax applicable to them. Note.- For the purpose of this section "plinth area" means in the case of a single-storeyed building, the area of its floor level (including thickness of wall) of the portion having roof and in the case of a multi-storeyed building with or without cellar-storey, the total area of such floor level (including thickness of wall but excluding the open terrace portion) of each storey of the building. (3) The Council of the respective Municipality shall, subject to the limits fixed by the Government in accordance with the category of buildings referred to in sub-section (2), fix, after complying with the procedure prescribed, the rates of basic property tax (in whole number) to be made applicable to each category of building situated in the area of the Municipality on a scale of one square meter plinth area. The rates of basic property tax for all buildings of same category or its sub-categories, as the case may be, shall be the same throughout the area of the Municipality. 49A[(4) The limits of rates of basic property tax fixed by the Government under sub-section (2) and the rates of basic property tax once determined by the Council subject thereto under sub-section (3) shall be in force for five years from the date on which they come into force and thereafter on completion of every five years, the Government and the Council, respectively, shall, revise the rates of basic tax in such a manner as to have an enhancement of twenty five per cent on the existing limits and rates by the completion of the period of every five years, so as to be in force for the next five years. While assessing the tax in accordance with the revised rate of tax as stated above,-- (a) in the case of buildings which are new, reconstructed and altered in usage, the Secretary shall fix the tax as prescribed and take further action; (b) in the case of building which does not belong to the category stated in Clause (a) and the annual property tax of which was fixed once based on the plinth area, the Council shall, for the purpose of revising the annual property tax for the succeeding five year period, revise the tax by enhancing the existing annual property tax along with twenty five per cent of the same and accordingly the Secretary shall give demand notice for next five years to the owner of the building: Provided that while revising such annual property tax, no deduction or enhancement under sub-section (7) shall be applicable;] (5) The rates of basic property tax fixed by the Council for the first time under sub-section (3) shall come into force on such date as the Government may, by notification, appoint in this behalf. (6) The basic property tax shall be such amount as is arrived at by multiplying the plinth area of a building with the rate of basic property tax applicable to such building which is rounded to the next higher whole number. (7) In the basic property tax of building calculated as per sub-section (6), on the basis of the factors,- (i) where the areas of Municipality are classified into different zones, the zone in which the building is located; (ii) availability of road facility to the building; 49B[x x x x] (iv) Construction of roof of the building; (v) age of the building; (vi) construction of floor of the building; 49H[(via) green buildings as specified in clause (18a) of Section 2.] 49B[x x x x] (viii) air conditioning facility of the building; 49B[x x x x] (8) The amount so arrived at by allowing deductions and making additions on the basic property tax under sub-section (7) shall be adjusted to the next higher whole number and the amount so assessed shall be the annual property tax of the building. (9) In the case of a building, if two or more uses or its sub-categories referred to in sub-section (2) or any two or more factors referred to in sub-section (7) or two or more kinds of a factor are applicable at the same time, the aggregate of annual property tax shall be assessed by reckoning separately, the property tax as applicable to the respective part of. the building: Provided that, if more than one kind of anyone of the factors such as construction of roof of the building, construction of floor of the building, 49C[x x x x] are applicable to a building at the same time the annual property tax of the building shall be assessed on the basis of that kind applicable to more than half portion of the aggregate plinth area. (10) After publishing the rate of basic property tax applicable to the area of Municipality and the notification classifying the areas of the Municipality in to different zones, the Secretary shall by a public notice, publish the general details helpful to the owners to assess the annual property tax of their buildings by themselves, in accordance with such details as the plinth area of the building, the permissible deductions and the additions that may be made in the basic property tax, by said notice, demand the owners of the building to submit the returns in respect of the property in the prescribed Form 49D[within thirty days] from the date of publication of such public notice. The Format/copy of the Form shall be made available to the owners of the building free of cost. (11) The owner of the building or the person authorised by him shall, within the time allowed, submit before the Secretary or the Officer authorised the attested tax return recording all the particulars necessary in connection with the assessment of tax and obtain receipt of acknowledgement. 49E[x x x x] (13) On the basis of the return submitted by the owner of the building and on the findings of the Secretary in the inquiry, the Secretary shall assess the annual property tax of the building and levy property tax of the building by issuing demand notice applicable five years to the owner of the building. 49E[x x x x] (15) The annual property tax assessed in respect of a building shall be payable in two half yearly instalments. The instalment in respect of any half-year shall be paid on or before the last day of the said half-year and if not paid within that date penalty under sub-section (2) of Section 538 shall be applicable from the next day: Provided that there is no bar for one time payment of annual property tax in the first half-year itself. (16) The Secretary shall revise the annual property tax of the building taking into account the rate of basic property tax applicable to a building under sub-sections (2) and (3) considering the change, if any, occurs in the use of the building, variation, if any, occurs in the plinth area of the building specified in sub-section (6), the deductions and additions in conformity with the variation, if any, occurs in any factor or any kind of factor specified in sub-section (7). The owner of the building shall, within thirty days inform the Secretary in writing the changes that may occur in use, etc. and submit revised tax return under sub-section (10). (17) The Municipality shall, in the case of land used exclusively for agricultural purposes and which is more than one hectare in extent, levy, property tax on its annual value excluding one hectare of land, at the rate as fixed by the Council of the Municipality: Provided that such rate shall not exceed the maximum limit, if any rate has been fixed by the Government. Explanation.-- For the purpose of this sub-section the annual value shall be deemed to be the rent which may reasonably be expected, if the land for which property tax is to be assessed is leased out from year to year. (18) The Government may, at any time, inspect the accuracy of the assessment of property tax made by the Secretary in the case of a building and give appropriate direction to the Secretary in this regard and the Secretary shall be bound to comply with it. (19) The Government may, by notification in the Gazette, make rules in respect of the following:- (i) the procedure to be followed by the Council for fixing the rates of basic property tax to be made applicable to the area of the Municipality subject to the limits specified by the Government and for publishing the same; 49F[(ii) determination of the maximum and minimum limit of enhancement of annual property tax;] (iii) for notification classifying the area of Municipality into different zones; (iv) the classification of factors to be made applicable for making deductions and additions on the basic tax, their criteria and the rate of deductions or additions applicable to each kind; (v) the procedure for submitting return containing particulars helpful for the assessment of property tax and the Form of return to be submitted to the Secretary by the tax-payer; 49G[x x x x]; (vii) the action to be taken against officers who fail to collect information or furnish false information with regard to the assessment of property tax; (viii) procedure for assessing basic property tax and annual property tax in respect of each building; (ix) for granting exemption and other remission from property tax; (x) any circumstance under which and any condition subject to which it is liable to pay the entire tax or any part thereof or free from such liability to pay tax in respect of the buildings located in a place which is included in or excluded from the area of a Municipality during any half-year or in respect of buildings re-erected or demolished or lying vacant in the area of Municipality, such circumstances and conditions; (xi) the procedure for recording the change in respect of the ownership of the building in the register of property tax; (xii) other matters incidental to the assessment and realisation of property tax.] Substituted by Act 30 of 2009 dt. 07/10/2010. Prior to the substitution it read as under: Description and classes of property tax.-- (1) Where a Council of a Municipality by a resolution determines to levy property tax, such tax shall unless, exempted by or under this Act or any other law, be levied on all buildings and lands within the municipal area. (2) The property tax under sub-section (1) may comprise of a tax for general purposes and a service tax and the service tax may comprise of - (i) a water and drainage tax to provide for expenses connected with the construction, maintenance, repair, extension or improvement of water or drainage work heretofore provided or hereafter to be provided. (ii) a lighting tax to provide for expenses connected with the lighting of the municipal area by gas, electricity or any other means; (iii) a sanitary tax to provide for expenses connected with the general sanitation of the municipal area and the removal of rubbish, filth and carcasses of animals from the private premises. (3) Save as otherwise provided in this Act, these taxes shall be levied at such percentage of the annual value of buildings or lands which are occupied by or adjacent and appurtenant to buildings or both as may be fixed by the Council: Provided that the aggregate of the percentage so fixed shall not be less than six percent and more than twenty per cent in the case of a Town Panchayat, nine percent and twenty five per cent in the case of a Municipal Council and twelve percent and twenty five per cent in case of Municipal Corporation of the annual value of all buildings, or lands, which are occupied by or adjacent and appurtenant to buildings or both and that the different components of tax shall not be less than the following minimum rates namely: Substituted by Act 8 of 2014 (w.e.f. 25/11/2012). Omitted by Act 8 of 2014 (w.e.f. 25/11/2012). Omitted by Act 8 of 2014 (w.e.f. 25/11/2012). Prior to the amendment it read as "the construction of wall of the building" Substituted by Act 8 of 2014 (w.e.f. 25/11/2012). Prior to the amendment it read as "within sixty days" Omitted by Act 8 of 2014 (w.e.f. 25/11/2012). Substituted by Act 8 of 2014 (w.e.f. 25/11/2012). Prior to the amendment it read as "(ii) fixing the increase in the upper limit of annual property tax;" Omitted by Act 8 of 2014 (w.e.f. 25/11/2012). Inserted by Kerala Finance (No. 2) of 2021 (Act 9 of 2021), (w.e.f. 10-06-2021).