After soaring inflation of essential commodities added to by a hike in prices of petrol, diesel and LPG, residents are up for another hole in their pocket, to be burned by the newly introduced property tax, which is sure to cream off a handsome share their annual income from April 1.
The unit evaluation committee of Patiala municipal corporation (MC) fixed the unit values of the properties per square metre on Monday according to five categories defined by the state government.
The property tax would be calculated keeping in view various parameters like usage factor, type factor, structural factor, occupancy factor and most importantly, the age factor.
The tax for residential areas has been fixed at 1% of 5% of the total unit value of that property. (For unit values decided by the civic body see box).
In case of commercial properties, including all shops, private schools and private hospitals, the tax would stand at 1% of 15% of the total unit value.
In case of empty plots, 1% of 0.25% of the total unit value would be charged as the property tax.
However, the rates fixed by the civic body would be finalised only after being published for inviting people's objections.
The MC plans to garner Rs 60 crore to be spent on development every year and making the corporation self-sufficient.
Shopping malls, marriage palaces, and three and four-star hotels would have to pay 1% of 20% of the total unit value.
The property tax would be levied on the carpet area that has been constructed upon, and not the area which is lying vacant. But, as a caveat to this rule, targeting the super rich, owners utilising less than 25% of the total area of a plot would have to bear the property tax for the entire plot as per rates.
Unit values fixed by Corporation
Unit values (Rs per square meter)
A (Commercial and posh) - Rs 1,20,751
B (residential post areas)- Rs 55,162
C (planned or unplanned city
areas including walled areas) Rs 34, 181
D (Colonies in outer areas) - Rs 25, 689
E (Poor areas and slums)- Rs 18,323
Load on residents' pockets
Posh (commercial-cum-residential)- If the house has been built in the last 20 years (in case most residential houses in the city)- Rs 58 per square yard per annum
Posh areas (residential)- If the house has been built in the last 20 years - Rs 27 per square yard per annum-
Planned or unplanned city residential colonies, including the walled city areas - If the house has been built in the last 20 years - Rs 15 per square yard per annum.
Colonies in outer areas- If the house has been built in the last 20 years - Rs 11 per square yard per annum.
Slums or other poor areas- If the house has been built in the last 20 years - Rs 8 per square yard per annum.