After much dilly-dallying, the Haryana council of ministers on Friday finally give its nod to the imposition of house tax or property tax in the state.
The state was forced to reimpose the tax so as to abide by the Centre's stipulation for release of funds under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) and Urban Infrastructure Development Scheme for Small and Medium Towns (UIDSSMT).
As a populist measure, the Congress government had in 2010 exempted self-occupied residential buildings from house tax, leaving not only municipal bodies broke but also led to stoppage of Central grants.
While the modalities for implementation of house tax were worked out long back, its imposition was kept pending due to various reasons for almost a year.
As per Friday's cabinet decision, the state government has decided to levy only a token amount of Re 1 per square yard on residential property up to 250 square yards. The cabinet also imposed fire tax at the rate of 10% of property tax on all non-residential property.
Principal secretary, urban local bodies, Ram Niwas said that there were 13 lakh residential properties in the urban areas of the state and 83% of these were of 250 square yards or less. Niwas said that self-assessment method would be used to levy the house tax and even government property would be taxed.
While Re 1 per square yard would be levied on self-occupied residential property built on plots of 250 square yards or less and apartments of up to 500 square feet, the levy on constructed houses on plots of more than 250 square yards and flats of more than 500 square feet would be imposed by charging house tax at the collector rate multiplied by 0.00075 per square yard/feet.
Similarly, the property tax on self-occupied institutional and industrial properties would be at the collector rate multiplied by 0.001 and for commercial property, it is proposed as the collector rate multiplied by 0.001875 (up to 50 square yards 0.001125)
The cabinet also decided to give 100% rebate from house tax to religious property (only of real religious structures), orphanages, alm houses, municipal buildings, cremation/burial grounds; all residential buildings up to 250 square yards owned by ex-servicemen or families of deceased soldiers, ex-servicemen and ex-central paramilitary force personnel; provided they do not have any other house in Haryana and are residing in it themselves and have not let out any portion of the house; provided further that the condition of letting out of the house shall not apply to those who are in receipt of pension amounting to Rs.1275 per month or less.
Also 100 % rebate will be given to all residential buildings owned by war widows; provided they do not have any other residential house in Haryana and are residing in it and have not let out any portion of the house. A rebate of 25 % will also be given to non-RCC construction and properties more than 25 years old.