Description and class of property tax

(1) Unless exempted under this Act or any other law, property tax shall be levied every year on all

¹ For Sections 108, and 109, sections 108, 109, and 109A Substituted w.e.f.

² Substituted by Act 32 of 2003 w.e.f. 20.8.2003.

2[buildings or vacant lands or both] situated within the city. 19.11.2001.

1[(2) The property tax shall be levied in case of,-

1. (a) commercial building at such percentage not being less than 0.5 per cent (rupees five per thousand) 2[and not more than three percent] of taxable capital value of the building;
2. (b) residential building and buildings other than commercial building, at such percentage not being less than

3[0.2 per cent (rupees two per thousand)] and not more than

3[

2[1.5 percent (rupees fifteen per thousand)] ] of taxable capital value of the building;

1. (c) vacant land, 3[at such percentage not being less than 0.2 percent (rupees two per thousand) and not more than 0.5 percent (rupees five per thousand) of taxable capital value of land] 4[(i) XXX
   • (ii) XXX
   • (iii) XXX] ] 5[(d) industrial building at such percentage not being less than seventy percent of rate levied in case of commercial building in accordance with clause (a): Provided that, the percentage so fixed shall not be less than the rate levied in case of residential buildings and buildings other than commercial in accordance with clause (b).] 1. Sub-section (2) sub-stituted by Act 32 of 2003 Clauses (a) and (b) deemed to have come in to force on 16.6.2003 and clause (c) w.e.f. 19.11.2001.

² Substituted by Act 19 of 2012 w.e.f. 28.4.2012.

3. For the figures, words and brackets “0.3 percent (rupees three per thousand)” and

⁴ Omitted by Act 04 of 2021, The previous text was,

“one percent (rupees ten per thousand)” shall respectively be Substituted by Act 04 of 2021 w.e.f. 19.01.2021. “

1[(i) measuring not above one thousand square meters, at not less than 0.1 per cent (rupees one hundred per lakh) and not more than 0.5 percent (rupees five hundred per lakh) of taxable capital value of land,

1. (ii) measuring above one thousand square meters but not above four thousand square meters, at not less than 0.025 per cent (rupees twenty five per lakh) and not more than 0.1 percent (rupees one hundred per lakh) of taxable capital value of land,
2. (iii) measuring above four thousand square meters, at not less that 0.01 per cent (rupees ten per lakh) and not more than 0.1 percent (rupees one hundred per lakh) of taxable capital value of land.] ”

⁵ Inserted by Act 02 of 2022 w.e.f.13.01.2022.

1. (3) Subject to the minimum and the maximum, rates specified in sub- section (2), the corporation may, fix the property tax at such percentage of the taxable capital value of the buildings or 1[vacant lands or both] having regard to location, type of construction of the building, nature of use to which the 1[vacant land] or building is put, area of the 1[vacant land] , plinth area of the building, age of the building and such other criteria as may be prescribed: Provided that the percentage so fixed may be different in different areas and for different classes of buildings and lands. 3[ 2[Provided further that, the vacant land appurtenant to the building, up to one thousand square feet shall be exempted and more than one thousand square feet shall be levied with property tax on vacant land in accordance with clause (c) of sub-section (2).] ] 1.4.2005.

¹ Substituted by Act 32 of 2003 w.e.f. 19.11.2001.

² Inserted by Act 32 of 2003 w.e.f. 19.11.2001 and substituted by Act 5 of 2005 w.e.f.

³ Substituted for the words” Provided further that the land appurtenant to a building shall be

exempted from levy of Property Tax.”, by Act 04 of 2021 w.e.f. 19.01.2021.

¹ Omitted by Act 32 of 2003 w.e.f. 16.6.2003.

1[Explanation: xxx]