MC survey to work out new property tax rates in Solan

Ambika Sharma

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Solan, june 2

A survey of households will be conducted by the MC staff in Solan soon to work out the new property tax rates.

The Union Government had made it mandatory to re-devise bylaws of property tax in the urban local bodies (ULBs), using the unit area method by taking into consideration the plinth area of a property. The bylaws were chalked out to enable a ULB to obtain Central grants.

Relief for residents

• Owners of residential properties, including let-out property, have been given relief
• New rates have been slashed to Rs 608 per 100m and Rs 1,265 per 100 m for the residential and let-out properties
• The property tax will be fixed considering factors like location, structure, age and occupancy of a building
• Earlier, a flat tax rate of Rs 4,230 was applicable for all residential and commercial properties

A tax up to 25 per cent has been imposed on commercial and domestic properties by considering factors like location, structure, age and occupancy of a building.

The MC earned Rs 47.30 crore annually as property tax. It will go up as the new tax structure has come into force since April 1. The tax is collected annually and once the survey is complete, the MC will initiate its collection.

The owners of residential properties, including let-out property, had been given relief with a sizable reduction in the new structure. As against the earlier rate of Rs 4,230 per 100 m for residential properties, the new tax slabs have been slashed to Rs 608 per 100m and Rs 1,265 per 100 m for the residential and let-out properties.

Earlier, a flat tax rate of Rs 4,230 was applicable for all residential and commercial properties. Various commercial categories have been devised now on the basis of the built-up area as well as the business undertaken.

This survey will help the MC assess how much tax will be charged from each commercial or residential property.

Commissioner, Solan MC, Rajiv Kumar said, “A meeting will soon be held with technical experts, including retired engineers of various departments like the HP Housing and Urban Development Authority, to devise a broader strategy on how to go about it. Following this, a survey team will visit each building and assess its tax.”

The self-assessment is also underway by building owners though MC officials are not keen to rely entirely on their results.

Kumar said, “The 3-D image of the building will also be available to the staff for the easy tax assessment. The survey will be completed in a few months.”

This is the first tax revision undertaken in the Solan MC ever since it was upgraded in 2020. The survey will also be undertaken in the merged rural areas of the MC, which are enjoying a three-year tax exemption.They will be liable to pay the tax from 2023.