No property tax for small houses in J&K

Jammu, Feb 23 (IANS) All the poor and marginalised people having small houses with built-up area not more than 1000 square feet have been exempted by the Jammu and Kashmir (J&K) government from paying any property tax to be levied from April onwards, an official statement clarified on Thursday.

The issue was raised in a meeting chaired by Chief Secretary Arun Kumar Mehta to deliberate upon "misinformation" created regarding property tax in Jammu and Kashmir.

The meeting was attended by Additional Chief Secretary, Home; Principal Secretary, H&UDD; ADGP Jammu/Kashmir; Deputy Commissioners; SSPs; Commissioners of Jammu and Srinagar Municipal Corporations and other concerned officers.

It was informed that levy of property tax is essential part of urban sector reforms.

"Jammu and Kashmir is one of the last States/UTs to levy property tax and non-imposition of the tax was depriving local bodies to become self sustaining. Urban Local Bodies (ULBs) are required to render multiple civic services in their jurisdiction and need resources. The levy of this tax will improve the financial health of these institutions and improve services, besides creating employment," the statement said.

While explaining the methodology of levying the tax in the UT, the Principal Secretary, H&UDD, Rajesh Prasad stated that there is no tax liability for those having built-up area of their houses less than 1000 sft besides the proportion of taxes is considerably lesser here than that levied in other parts of the country.

Similarly, all places of worship, including Temples, Masjids, Gurudwaras, Churches, Ziarats, Cremation grounds, Burial grounds etc are exempt from payment of property tax.

"It was further informed that the tax is proposed to be levied at just 5 per cent of Taxable Annual Value (TAV) of the property in case of a residential property and at 6 per cent of TAV in case of Non-Residential property. It was also apprised that the tax rates, even in the Corporations are one of the lowest in the country, almost half that of Himachal, and one fourth to one sixth, overall, of other progressive States like Gujarat Maharashtra, Karnataka and Delhi. Tax to be paid in Municipal Committees shall be much lower than that of Municipal Corporations. There is no property tax in rural areas. Besides the property tax is to be assessed and paid on annual basis," the statement added.

On the occasion the Chief Secretary also impressed upon the officers to create awareness among public for removing misconceptions. He told them to create a helpline for the masses which would disseminate the correct information about the matter.

He urged them to come up with a simple 'Property Tax calculator' for people so that they themselves are able to assess the actual amount they are liable to pay.

Mehta emphasised on the fact that people should be made aware that it is not permitted to direct ULB resources for any other purposes. The property tax paid by people shall be used in their own areas.

The accumulations of the tax money will be collected by the ULBs, retained by them and used for their development needs exclusively. The tax to be collected from the people shall be spent only for their betterment, improving their quality of life.

Regarding its implications it was said that the Property Tax is to be levied annually and can be paid in two equal installment. Further, 10 per cent rebate can be availed by early payment of the Property Tax.

On Tuesday, the J&K government had issued a notification which said that property tax will be imposed in the Union Territory from April 1, 2023.

"In exercise of the powers conferred by Section 71A of the Jammu and Kashmir Municipal Act, 2000 (hereinafter referred to as the Act), read with Sub-Section 1 of Section 65 and Sub-Section 1 of Section 73 thereof, the government hereby notifies the following rules for levy, assessment and collection of property tax in the Municipalities and Municipal Councils of the Union Territory of Jammu and Kashmir," read the notification issued by Housing and Urban Development department.

"These rules shall be called Jammu and Kashmir Property Tax (Other Municipalities) Rules, 2023. These shall come into force from April 1, 2023," it added.