Description and class of property Tax

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 buildings or vacant land or both situated within the municipal area. (2) The property tax shall be levied in case of,- (a) commercial building at such percentage not being less than 0.5 percent (rupees five per thousand) not more than three percent of taxable capital value of the building. (b) residential building and buildings other than commercial at such percentage not being less than 0.2 percent (rupees two per thousand) and not more than 1.5 percent (rupees fifteen per thousand) of taxable capital value of the building. (c) vacant land at not less than 0.2 per cent (rupees two per thousand) not more than 0.5 percent (rupees five per thousand) of taxable capital value of land. (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) of sub-section (2) of taxable capital value of the building: 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). (3) Subject to the minimum and the maximum rates specified in sub-section (2), the Municipal Council shall, fix the property tax at such percentage of the taxable capital value of the buildings vacant land or both having regard to the location, type of construction of the building, nature of use to which the vacant land or building is put, area of the 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. 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).