After much dilly-dallying, Haryana Council of Ministers on Friday finally give its nod to the imposition of house tax or property tax in the state.
As a populist measure the Congress government in its 2010 had exempted self-occupied residential buildings from house tax. The exemption not only left the municipal bodies broke but also led to stoppage of Central grants.
However, in order to abide by 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), the state government has been forced to rollback the exemption.
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 Rupee one per square yard on the residential properties upto 250 square yards. The Cabinet also imposed fire tax at the rate of 10% of property tax on all non residential properties.
Principal Secretary, Urban Local Bodies, Ram Niwas said that there were 13 lakh residential properties in urban areas of the state and 83% of these were of 250 square yards or less. Niwas said that self assessment method will be used for levying the house tax and even government properties will be taxed.
While Re 1 per square yard will be levied on self occupied residential properties built on plots of 250 square yards or less and apartments of upto 500 square feet, the levy on constructed houses on plots of more than 250 square yards and flats of more than 500 square feet will be imposed, by charging the 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 collector rate multiplied by 0.001 and for commercial properties, it is proposed as collector rate multiplied by 0.001875 (upto 50 square yards 0.001125)
The Cabinet also decided to give 100 % rebate from house tax to religious properties (only of real religious structures), orphanages, Alm Houses, municipal buildings, cremation/burial grounds; all residential buildings upto 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 residential 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. 1,275 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.