Additional construction within ambit of new property tax rate, no tax for terrace roof with tiles or sheet

Thiruvananthapuram: The latest hike in property tax will be applicable to all additional constructions made to existing structures. The structures taxed also includes those allotted numbers prior to April 1 by local self-governments.The tax for such buildings were hiked by 5 per cent recently.

The Local Self-Government Department had clarified in a circular that the increase in the basic rate of property tax would be applicable only to those buildings which are assessed from April 1. However, the Kerala Municipality and Panchayat Raj (Property Tax, Services Cess Surcharge) Rules of 2011 state that new tax rates would be applicable to buildings which carried out additional constructions after the property tax assessment. Since most old buildings carry out additional construction work, they are likely to come under the new tax net.

The Rules state that any change in the plinth area or in the nature of use of the building (such as using residential buildings for other purposes) after property tax assessment must be notified to the LSG secretary in writing within 30 days. If this is not done, a fine of Rs 1,000 should be paid. If the authorities are intimated in writing before May 15, the penalty could be avoided.

Tax increase in software

Even before the local self-governments approved the 5 per cent increase in the property tax for existing buildings, the increase was reflected in the software used for paying tax. The software was prepared by the Information Kerala Mission.

How property tax is assessed

Not every kind of additional construction in residential buildings attracts tax. There is no additional tax for a verandah or shed that has not been partitioned with a wall or grill. There is also no tax for a terrace that has been roofed with sheets or tiles.

Constructions such as a toilet built separate from the building, firewood store, cattle shed, and enclosures for pet animals or birds, car shed, and pump house will not come under the ambit of the tax.

If there is a way of entry to the building from a National Highway or important road, there will be an increase of 30 per cent in the basic tax rate.