Amendment status not verified — confirm the current text below against the official source.
(1) Any Village Panchayat 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 Village Panchayat and not exempted under the provisions of this 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 metre 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 buildings 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 the thickness of the 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 the thickness of the wall but excluding the open terrace portion) of each storey of the building. (3) The respective Village Panchayat shall, subject to the limit fixed by the Government in accordance with the category of buildings referred to in sub-section (2), fix after complying with procedure prescribed, the basic rates of property tax (in whole number) to be made applicable to each category of buildings, situated in the area of Village Panchayat 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 Village Panchayat. 35A[(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 Village Panchayat 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 Village Panchayat, respectively, shall revise the rates of basic property tax by making an enhancement at the rate of five per cent on the existing limits and rates in each year in such a manner as to have an enhancement of twenty five per cent 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 is fixed once based on the plinth area, for the purpose of revising the annual property tax for the succeeding five year period, the Village Panchayat shall revise the tax by making an enhancement of twenty five per cent along with the existing annual property tax and accordingly the Secretary shall give demand notice for the next five years to the owner of building; Provided that while revising such annual property tax, no deduction or addition under sub-section (7) shall be applicable.] (5) The rates of basic property tax fixed by the Village Panchayat for the first time under sub-section (3) shall come in to 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 Village Panchayat are classified into different zones, the zone in which the building is located; (ii) availability of road facility to the building; (iii) 35B[x x x x] (iv) construction of roof of the building; (v) age of the building; (vi) construction of the floor of the building; 35D[(via) green buildings as specified in clause (xviiia) of Section 2] (vii) 35B[x x x x] (viii) air conditioning facility of the building; (ix) 35B[x x x x] (that is whether used for personal purpose or given on rent etc.) - the Secretary, in accordance with the classification of factors as may be specified in the Rules and at the rates as may be specified for each category, allow deductions and make additions, as the case may be: Provided that the aggregate deductions so allowed in respect of all the items shall not exceed seventy five per cent of the basic property tax. (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, 35B[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 areas of the Village Panchayat and the notification classifying the areas of the Village Panchayats into 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 additions that may be made in the basic property tax, by a notice, demand the owners of the building to submit the return in respect of the property in the prescribed form 35C[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 by the Village Panchayat. (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 by recording all particulars necessary in connection with the assessment of tax, and obtain the receipt of acknowledgement. (12) 35B[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 for five years to the owner of the building. (14) 35B[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 fine under section 209E 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 accordance with 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 the use etc. and submit revised tax return under sub-section (10). (17) The property tax and the surcharge upon the property tax payable under section 208 shall, if any levied, subject to the prior payment of land revenue, if any, due to Government in respect of the place where the building locates shall be the first charge upon the building, land and upon the movable property, if any, found within or upon the same and belonging to the persons liable to such tax, (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 Village Panchayat for fixing the rates of basic property tax to be made applicable to the area of the Village Panchayat subject to the limits specified by the Government and for publishing the same; (ii) 35A[Fixing of the minimum limit and the maximum limit of enhancement of annual property tax] (iii) for notification classifying the area of the Village Panchayat 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; (vi) 35B[x x x x] (vii) the action to be taken against officers who fail to collect information or furnish false information if respect of the assessment of property tax; (viii) procedure for assessing the basic property tax and the 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 property 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 Village Panchayat during any half-year, or in respect of buildings re-erected or demolished or lying vacant in the area of a Village Panchayat, such circumstances and conditions; (xi) the procedure for recording the change in respect of the ownership of building in the register of property tax; (xii) other matters incidental to assessment and realisation of property tax.] Substituted by Act 31 of 2009 dt.07/10/2009. Substituted by Act 23 of 2013 (w.e.f. 25/11/2012). Omitted by Act 23 of 2013 (w.e.f. 25/11/2012). Substituted for the words "within sixty days" by Act 23 of 2013 (w.e.f. 25/11/2012). Inserted by Kerala Finance (No. 2) of 2021 (Act 9 of 2021), (w.e.f. 10-06-2021).