The Hindu

• Property owners will have to shell out a hefty fine for delayed payment 
• The scheme will be implemented in April
• Corporation has fixed separate tax rates for non-agricultural vacant sites

Mangalore, Feb 21: The Mangalore City Corporation has worked out details of the self-assessment scheme (SAS) of property tax to be implemented inApril, even as the BJP is set to create history by taking control of the body on Thursday.

An important clause in the new scheme is that property owners will have to shell out a hefty fine for delayed payment. However, early birds will get a concession of up to 55 per cent in the case of residential buildings and five per cent in the case of commercial structures.

The corporation has proposed 0.6 per cent tax for residential structures and two per cent tax for commercial buildings for 2008-09. In addition, the assessee has to pay cess.

Rebate

There will be rebate if the taxes are paid before the deadline of June 30 every year, a senior official in the corporation said.

The tax is assessed based on guideline values of buildings and lands in different areas, which is fixed by the Government from time to time.

In the case of buildings, the total guideline value is taken into account while in the case of lands only half of the total guideline value is considered for calculating taxes.

For example, if the total guideline value of the land is Rs. 1 lakh, tax is calculated on half of that amount or Rs. 50,000. This is common for lands on which residential and commercial buildings have come up.

Residential buildings

However, land value and building value differ for residential buildings built on the sides of main roads, crossroads and inner roads. For example, if the total guideline value of a given land and residential building is Rs. 1 lakh, the annual tax payable is Rs. 600 at the rate of 0.6 per cent.

Commercial buildings

In case of a commercial building and land of same value, the assessee will have to pay an annual tax of Rs. 2,000 at the rate of two per cent. .

If the assessee fails to pay the tax before the deadline he would be levied a fine at the rate of two per cent on the tax every month, the official said.

The corporation had fixed separate tax rates for non-agricultural vacant sites in its limits.

The corporation has taken steps to prepare booklets containing details regarding taxes and explanations on how they should be calculated and paid. They will be made available by the end of March, the official said.