Property tax is ad valorem tax on the value of a property. It is leveled by the government in which the property falls. It is paid on property owned by an individual. It is a real estate tax and can be considered a regressive tax. It is paid by the owner of a property and is calculated on the value of the property including land. The government will use this tax for water and sewer improvements, education, making roads, constructing hospitals, etc. The amount owners owe in property tax is determined by multiplying the property tax rate by the current market value of the land in question. These taxes are leveled on real property and include land, structures and fixed buildings.
The payment schedule of property taxes varies by locality and when property taxes are left unpaid, the tax authorities may assign a lien against the property and it should be completed by buyers before purchase. In Bangalore, property tax is equal to 20% of the total area of the property tenanted, self-occupied, and vehicle parking area multiplied by per square ft fixed by BBMP for each kind of usage of property for 10 months reduced by depreciation allowed by BBMP plus 24% cess on property tax.
The top state with the highest number of income tax filers in the country is Maharashtra followed by Gujarat, Uttar Pradesh and then Tamil Nadu. In our union territory, the news is spreading about the introduction of property tax. Urban and Housing development department has been working on this proposal and it is presumed that firstly commercial establishments will be brought under this act. If imposed it should not affect business class.
In October 2020, the Ministry of Home Affairs empowered the J&K administration to impose property tax through municipal corporations and the residential structures will be exempted. It is pertinent to mention here that all states and union territories have imposed this tax and only this union territory is yet to impose it. Many times, previous governments have tried to impose tax but succumbed to political pressure. The MHA has issued several amendments in the Jammu and Kashmir Municipal Act 2000 and Municipal Corporation Act 2000 carried through the Jammu and Kashmir Reorganization Order 2020. If imposed, the property tax should be leveled on all lands and buildings situated within the municipal areas. This tax should be leveled at a percentage not exceeding 15 % of the taxable annual value of land and buildings.
Due to turmoil for the last three decades, our business system has also been at loss in many ways and business communities are trying their best to cope with the situation. This time before leveling property tax, the loss met with business communities must not be underestimated. In my opinion, firstly rich persons having big commercial hubs located in municipalities should be brought under this act and for those rich persons who have constructed commercial establishments on state and kacharia land, it may be best on the part of the administration to impose a double tax on such establishments and the small business holders within the municipal areas shall not be included under this act. Before introducing this act, the Housing and Urban Development department should do a proper survey and identify those commercial establishments that belong to rich people and common business people should not be brought under this act.

The writer is In charge District Record Room Anantnag

Mohd Amin Mir