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27-7-2011
Overview of Structure of    Property Tax in  Kurnool Municipal     Corporation          Presentation by :         Sri.P.V....
MUNICIPAL TAXATION1.   Kurnool Municipality was upgraded as     Municipal Corporation in the year 19942. Taxation is levie...
SEC 197. TAXATION TO BE     IMPOSED UNDER HMC ACT1.   (1) For purposes of this Act, the Corporation shall impose the     f...
SEC.198. NOTICE REGARDING LEVYOF TAXES   Before the Corporation passes any resolution   imposing a Tax specified in sub-se...
SEC 199:- PROPERTY TAXES OF WHAT TOCONSIST AND AT WHAT RATE LEVIABLE1.Property Tax    (a) General Tax    (b) Water Tax    ...
SEC 204:- PRIMARY RESPONSIBILITY FORPROPERTY TAXES ON WHOM TO REST.   1.    Property Tax shall be leviable primarily form ...
VALUATION OF PROPERTY ASESSABLE TOPROPERTY TAXESSec.212:-Rateble Value how to be determined:-[(1)] (a) The annual rental v...
[2] Any vacant land not exceeding three times ofplinth area of the building including site or a vacantland to the extent o...
SEC.213:-COMMISSIONER MAYCALL FOR INFORMATION ORRETURNS FROM OWNER OROCCUPIER OR ENTER INSPECTASSESSABLE PREMISES         ...
SEC. 214:-ASSESSMENT BOOK WHAT TO CONTAIN1.   A List of all Buildings and Lands in the city     either by name or number.2...
4.   If any such building or land is not laible to be     assessed to the General Tax the reasons of such     non liabilit...
Sec.215:- The Assessmentbook to be made separatelyfor each ward and in parts ifnecessary                           13     ...
Sec.218:- Public Notice to begiven   when   Valuation   ofProperty in any Ward has beencompleted.
Sec.219:- Assessment Book to be inspectionEvery Person who reasonable claims tobe the owner of some premises enteredin ass...
SEC.   220,   221:-   TIME   OF   FILINGCOMPLAINTS AGAINST VALUATIONSTO BE PUBLICLY ANNOUNCED.                            ...
Sec.226 :- New Assessment Book need not be            prepared every financial year.             A New       Assessment Bo...
Sec.229 :- Supply of Water at public drinkingfountain etc., not to be taxed.Sec.232 :- Refund of Property Tax :- anybuildi...
COLLECTION OF PROPERTY     TAXESSec.264 :- Property Tax how payable:-1.   Each of the property taxes shall be payble in ha...
Property tax Collection from                      2005-06 to 2010-11                                     2005-06 (97.49%) ...
Taxes and Non – Taxes Collection from                    Taxes and Non Taxes                   2005-06 to 2010-112005-06  ...
Sec.266:- Service of BillsEvery such bill shall specify the period for   which the premises the Tax is Charged   herein af...
SEC.268 :- NOTICE OF DEMANDif the amount of Tax for which any billhas been served as aforesaid is notpaid into the Municip...
Sec.269:- Distress:-if the person liable for thepayment of Property Tax does not within 15days from the service of the not...
AREA BASED MODELS OF ASSESSMENT S.No             Feature                           K.M.C 1      Basis of Levy            A...
5   Construction Factor/ Type of   -RCC    construction                   - Madras Terraced                               ...
Rebates/DeductionsOccupation Factor    Owner occupied – residential                     buildings -40% inclusive of       ...
Module for calculation of Property Tax of a                 Residential Building.Plinth area of the Building :- 10.mts X10...
MODULE FOR CALCULATION OF PROPERTY TAX OF ARESIDENTIAL BUILDING.    Plinth area of the Building :- 10.mts X10.mts =100 sq....
MODULE FOR CALCULATION OF PROPERTY TAX OF A NON- RESIDENTIALBUILDING.      Plinth area of the Building :- 10.mts X10.mts =...
Finances of MunicipalitiesMain sources of Income :Taxes :i. Property Taxii. Advertisement Taxiii. Government have taken ov...
PROPERTY TAX AND WATER CHARGES ONLINECOLLECTION COUNTERS IN THE OFFICE PREMISES
Tax Payers paying Tax at Office Collection Counter
STAFF COLLECTING TAX FROM THE TAX PAYERS
COMPUTERIZED DEMAND NOTICES OF PROPERTY TAXAND WATER CHARGES ARE ISSUED FOR TAX PAYERS.     TAX PAYERS ARE FACILITATED FOR...
Non-Taxesi.      Water Chargesii.     Fee from Markets and Slaughter        Housesiii.    Rents from Commercial Complexesi...
Water Charges   1. Kurnool Municipal Corporation is having                   33635 domestic Tap connections and           ...
Fees from Markets and   Kurnool Municipal Corporation will conductSlaughter Houses        open auction for each financial ...
Assigned Revenuesi.    Entertainment Tax : 90% of Entertainment      Tax     collected   by   Commercial     Tax      Depa...
THANK YOU  overview of municipal authorities in ap             dt[1]. 19-7-2011                                           ...
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  1. 1. 27-7-2011
  2. 2. Overview of Structure of Property Tax in Kurnool Municipal Corporation Presentation by : Sri.P.V.V.S.Murthy Commissioner 2 2
  3. 3. MUNICIPAL TAXATION1. Kurnool Municipality was upgraded as Municipal Corporation in the year 19942. Taxation is levied in pursuance of Hyderabad Municipal Corporation Act 1955 3 3
  4. 4. SEC 197. TAXATION TO BE IMPOSED UNDER HMC ACT1. (1) For purposes of this Act, the Corporation shall impose the following Taxes namely:- (a) Taxes on Lands and Buildings. (b) Octori. ( c) Taxes on Vehicles. (d) Taxes on Animals and boats. ( e) Taxes on Advertisements other than advertisements published in the newspapers. 4
  5. 5. SEC.198. NOTICE REGARDING LEVYOF TAXES Before the Corporation passes any resolution imposing a Tax specified in sub-section(1) of Section 197 for the first time or at a new rate it shall direct the Commissioner to publish a notice in the A.P. Gazette and local newspaper of its intention to do so. 5 5
  6. 6. SEC 199:- PROPERTY TAXES OF WHAT TOCONSIST AND AT WHAT RATE LEVIABLE1.Property Tax (a) General Tax (b) Water Tax (c) Drainage Tax (d) Lighting Tax (e)Conservancy Tax2. Taxes shall be levied at such percentages of their rateable value as may be fixed by the Corproration. 6 6 6
  7. 7. SEC 204:- PRIMARY RESPONSIBILITY FORPROPERTY TAXES ON WHOM TO REST. 1. Property Tax shall be leviable primarily form the actual occupier of the premises upon which the said Taxes are assessed . 2. Otherwise the said Taxes shall be primarily leviable as follows :- (a) if the premises are let from the lessor. (b) If the premises are sub-let from the superior lessor and (c) If the premises are unlet from the person in whom the right to let the same, vest. 7
  8. 8. VALUATION OF PROPERTY ASESSABLE TOPROPERTY TAXESSec.212:-Rateble Value how to be determined:-[(1)] (a) The annual rental value of lands and buildings shall be deemed to be the gross annual rent at which they may be reasonable expected to be let month to month or year to year with reference to its location, type of constructions plan of plinth area age of building, nature of use. (b) The annual rental value of lands and buildings shall be deemed to be the gross annual rent at which they may be reasonable expected to be let month to month or year to year, less a deduction at the rate of 10% of buildings aged upto 25 years and 20% of the buildings aged above 25 years. 8 8
  9. 9. [2] Any vacant land not exceeding three times ofplinth area of the building including site or a vacantland to the extent of one thousand square meterswhich ever is less shall be deemed to the adjacentpremises occupied as an appurtenant to the buildingand assessed to tax, to such building the tax shall belevied thereon at 0.50% of the estimated capitalvalue of the land.
  10. 10. SEC.213:-COMMISSIONER MAYCALL FOR INFORMATION ORRETURNS FROM OWNER OROCCUPIER OR ENTER INSPECTASSESSABLE PREMISES 10 10
  11. 11. SEC. 214:-ASSESSMENT BOOK WHAT TO CONTAIN1. A List of all Buildings and Lands in the city either by name or number.2. The rateable value of each such building and land.3. The name if ascertained of the person for payment of property tax. 11 11
  12. 12. 4. If any such building or land is not laible to be assessed to the General Tax the reasons of such non liability.5. When the rates of the Property Taxes to be levied for the year have been duly fixed by the Corporation.6. Under Section 227 or 228 a charge is made of Water supplied to any building or land by measurement of the Water Tax or Water Charge fixed at a special rate. 11
  13. 13. Sec.215:- The Assessmentbook to be made separatelyfor each ward and in parts ifnecessary 13 13
  14. 14. Sec.218:- Public Notice to begiven when Valuation ofProperty in any Ward has beencompleted.
  15. 15. Sec.219:- Assessment Book to be inspectionEvery Person who reasonable claims tobe the owner of some premises enteredin assessment book, he shall bepermitted to inspect and take extract ofthe said book.
  16. 16. SEC. 220, 221:- TIME OF FILINGCOMPLAINTS AGAINST VALUATIONSTO BE PUBLICLY ANNOUNCED. 16 16
  17. 17. Sec.226 :- New Assessment Book need not be prepared every financial year. A New Assessment Book shall be prepared at least once in every five years..
  18. 18. Sec.229 :- Supply of Water at public drinkingfountain etc., not to be taxed.Sec.232 :- Refund of Property Tax :- anybuilding or land or any portion of premiseswhich the Commissioner has treated underSec 216 as separate property vacant not lessthan ninety days
  19. 19. COLLECTION OF PROPERTY TAXESSec.264 :- Property Tax how payable:-1. Each of the property taxes shall be payble in half yearly.2. Half yearly installments, the taxes shall be payable in advance on each first day of April and October. 19 19
  20. 20. Property tax Collection from 2005-06 to 2010-11 2005-06 (97.49%) 2010-11 (97.99) 2006-07 (94.15)2009-10 (79.58) 2007-08 (98.20)2008-09 (91.20) 20
  21. 21. Taxes and Non – Taxes Collection from Taxes and Non Taxes 2005-06 to 2010-112005-06 2006-07 2007-08 2008-09 2009-10 2010-11 21
  22. 22. Sec.266:- Service of BillsEvery such bill shall specify the period for which the premises the Tax is Charged herein after provided against time within which objection may be raised or on the decision. 22 22
  23. 23. SEC.268 :- NOTICE OF DEMANDif the amount of Tax for which any billhas been served as aforesaid is notpaid into the Municipal Office within 15days from the service thereof, theCommissioner may cause to be servedupon the person liable for the paymentof the same a notice of demand in theform of Schedule K or to the like effect. 23 23
  24. 24. Sec.269:- Distress:-if the person liable for thepayment of Property Tax does not within 15days from the service of the notice ofdemant, pay the sum due or show sufficientcause for the non payment of the same tothe satisfaction of the Commissioner, suchsum with all cost of the recovery may belevied under a warrant in the form ofschedule L or to the like effect to be issuedby the Commissioner by distress and sale ofthe goods and chattels of the defaulters. 24 24
  25. 25. AREA BASED MODELS OF ASSESSMENT S.No Feature K.M.C 1 Basis of Levy Annual Rental Value 2 Components •Tax for General Purpose •Water and Drainage Tax •Lighting Tax •Scavanging Tax 3 Basis of Assessment Plinth Area – Zonal ARV rates are fixed by the ULBs for various categories of buildings and uses 4 Location Factor/Zoning Zoning is done with reference to expected rental values in different localities based on availability of civic services proximity to markets, educational institutions, etc. 25
  26. 26. 5 Construction Factor/ Type of -RCC construction - Madras Terraced -Mangalore -Asbestos roofed/GI roofed -Huts6 Use Factor Residential, Shops, Shopping complexes, Public uses offices, Banks, Hospitals, Nursing homes and Educational institutions, Commercial Hostel/Lodges/Restaurants and Godowns, Industrial, Cinema Theatres, Places of entertainment. Rebates/Deductions Occupation Factor Owner occupied – residential buildings - 40% inclusive of rebate under age of building . Tenant occupied – residential buildings – 10% inclusive of rebate under age of building Owner / Tenant occupied – Non- Residential buildings – 10% inclusive of rebate under age of building. 26
  27. 27. Rebates/DeductionsOccupation Factor Owner occupied – residential buildings -40% inclusive of rebate under age of building . Tenant occupied – residential buildings – 10% inclusive of rebate under age of building Owner / Tenant occupied – Non-Residential buildings – 10% inclusive of rebate under age of building. 27
  28. 28. Module for calculation of Property Tax of a Residential Building.Plinth area of the Building :- 10.mts X10.mts =100 sq.mts.Roof of Building :- R.C.C.Nature of usage :- Residential OwnerRate fixed for one sq.mt.:- Rs.11.50Monthly Rental Value of the Bldg :- 100 sq.mts X 11.50 =1150.00 M.R.V.M.R.V.= (2/3 Building Value) X ( 1/3 Site Value).Annual Building Value :- (1150X 2/ 3)X12 = 9199.99 or 9200Annual Site Value :- (1150 X 1/3) X12 = 4599 or 4600Annual Building Value :- 9200 X 40% =3680 (Less depreciation for owner occupation)9200-3680 = 5520 (net ARV after depreciation)Annual Rental Value :- ABV + ASV =ARV (5520 + 4600 = 10120 )Property Tax fixed :- ARV X 12.50% = (10120 x 12.50% =Rs. 1265/- per half year. 28 28
  29. 29. MODULE FOR CALCULATION OF PROPERTY TAX OF ARESIDENTIAL BUILDING. Plinth area of the Building :- 10.mts X10.mts =100 sq.mts. Roof of Building :- R.C.C. Nature of usage :- Residential Tenant. Rate fixed for one sq.mt.:- Rs.11.50 Monthly Rental Value of the Bldg :- 100 sq.mts X 11.50 =1150.00 M.R.V. M.R.V.= (2/3 Building Value) X ( 1/3 Site Value). Annual Building Value :- (1150X 2/ 3)X12 = 9199.99 or 9200 Annual Site Value :- (1150 X 1/3) X12 = 4599.99 or 4600 Annual Building Value :- 9200 X 10% =920 (Less depreciation for owner occupation) 9200-920 = 8280 (net ARV after depreciation) Annual Rental Value :- ABV + ASV =ARV (8280 +4600 =12880 ) Property Tax fixed :- ARV X 12.50% = (12880 x 12.50% =Rs. 1610/- per half year. 29 29
  30. 30. MODULE FOR CALCULATION OF PROPERTY TAX OF A NON- RESIDENTIALBUILDING. Plinth area of the Building :- 10.mts X10.mts =100 sq.mts. Roof of Building :- R.C.C. Nature of usage :- Non-Residential (Shop) (Owner / Tenant). Rate fixed for one sq.mt.:- Rs.68.00 Monthly Rental Value of the Bldg :- 100 sq.mts X 68.00 =6800 M.R.V. M.R.V.= (2/3 Building Value) X ( 1/3 Site Value). Annual Building Value :- (6800X 2/ 3)X12 =54396 Annual Site Value :- (6800 X 1/3) X12 = 27199.99 or 27200 Annual Building Value :- 54396 X 10% = 5439 (Less depreciation for owner occupation) 54396-5439 = 48957 (net ARV after depreciation) Annual Rental Value :- ABV + ASV =ARV (48957+ 27200 =51657 ) Property Tax fixed :- ARV X 16.50% = (51657 x 16.50% =Rs.8523/- per half year. 30 30
  31. 31. Finances of MunicipalitiesMain sources of Income :Taxes :i. Property Taxii. Advertisement Taxiii. Government have taken over levy and collection of Profession Tax from 1987- 88 and paying compensation to the ULBs 31
  32. 32. PROPERTY TAX AND WATER CHARGES ONLINECOLLECTION COUNTERS IN THE OFFICE PREMISES
  33. 33. Tax Payers paying Tax at Office Collection Counter
  34. 34. STAFF COLLECTING TAX FROM THE TAX PAYERS
  35. 35. COMPUTERIZED DEMAND NOTICES OF PROPERTY TAXAND WATER CHARGES ARE ISSUED FOR TAX PAYERS. TAX PAYERS ARE FACILITATED FOR PAYMENT OFPROPERTY TAX AND WATER CHARGES ONLY THROUGHONLINE COUNTERS LIKE COLLECTION COUNTER IN OFFICEPREMISES AND THROUGH E-SEVA CENTERS. DUE TO ONLINE COLLECTION MIS-APPROPRIATION ANDMALPRACTICES ARE AVOIDED. THERE IS ALSO GOOD RESPONSE FROM THE PUBLICFOR PAYING OF TAXES
  36. 36. Non-Taxesi. Water Chargesii. Fee from Markets and Slaughter Housesiii. Rents from Commercial Complexesiv. Building Licence Feev. Trade Licence Feevi. Betterment and development chargesvii. Encroachment Feeviii. Contributions towards water supply connections 36
  37. 37. Water Charges 1. Kurnool Municipal Corporation is having 33635 domestic Tap connections and collecting @ Rs.600/-for each half year for each assessment. 2. Kurnool Municipal Corporation is having 707 Nos. of metered Tap connections given for the Commercial buildings. And the charges are claimed as per unit rates. 37
  38. 38. Fees from Markets and Kurnool Municipal Corporation will conductSlaughter Houses open auction for each financial year. The details are given below. It is got income of Rs.8.58 lakhs for the financial year 2011-12 which is collected in advance at the time of finalization of open auction. 1.Markets :- 3 Nos. 2.Slaughter Houses :- 4 Nos. 3.Cycle Stands and other properties:- 4 Nos.Rents from Commercial Kurnool Municipal Corporation is having 21Complexes complexes with 401 shops. The shops are leased out in open auction. Reservation is given to S.C., S.T. & Disable. Kurnool Municipal Corporation is getting income Rs.132.84 lakhs per annum. 38
  39. 39. Assigned Revenuesi. Entertainment Tax : 90% of Entertainment Tax collected by Commercial Tax Department is assigned to ULBs on quarterly basis.ii. Surcharge on stamp duty : Surcharge on Stamp Duty is levied @ 2% of the value of the instrument by Registration Department and 100% of the Surcharge on Stamp Duty is allocated to ULBs on quarterly basis 39
  40. 40. THANK YOU overview of municipal authorities in ap dt[1]. 19-7-2011 40
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