Property Tax To Be Paid According Circle Rate; JH Cabinet Decides

The cabinet approved the Jharkhand Municipality Amendment Bill 2022 on Tuesday. According to this, property tax will be payable in the cities of the state on the basis of the circle rate of the land fixed by the district administration.

As per the provision, 0.075 per cent of the circle rate for residential construction will be payable as property tax. Whereas, for non-residential or commercial properties, tax will be levied at the rate of 0.15 per cent.

That is, in an area with a circle rate of one thousand rupees per square feet, the circle rate for construction on one thousand square feet was Rs 10 lakh. 0.075 per cent of Rs.10 lakh i.e. Rs.750 will be payable as property tax. Whereas, for property being used for non-residential or commercial use at the same place, 0.15 per cent i.e. Rs 1500 property tax will be levied. The cabinet allowed an increase in the rate of property tax every two years. Till now there was a provision to increase the tax every five years.

Till now, property tax was determined on the basis of roads in the state. Tax was collected by the municipal bodies by fixing the rate of property located near the main road and other roads. Under this, the same rate was fixed for raw and pucca construction. The tax rate was kept the same for both the slum and the pucca house. Now for residential and non-residential construction, different rates will be fixed on the basis of circle rate.

Experts say that the new provision will not increase the property tax much as compared to the current rule. Property tax in the slum area located on the main road will be reduced as compared to the present. However, the rate of tax on major constructions done on roads other than the main road may be fixed slightly higher than the present. But, that too will not be much.

More than 15 proposals were approved in the cabinet meeting. The proposal for a new sports policy in the state was approved on the occasion.