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Property tax is levied on all real estate and is applicable on office establishments, houses, and commercial buildings.
The Jammu & Kashmir government said on February 21 that property tax will be imposed in the Union Territory from April. The government notified the tax on residential and commercial establishments payable to urban local bodies (municipal corporations and committees) across J&K.
Until 2019, J&K had been exempted from property tax. However, after the abrogation of Article 370, which accorded special status to the region, all central laws automatically became applicable in J&K.
The tax rates will be five per cent of taxable annual value (TAV) for residential properties and six per cent for commercial properties, it stated.
“In exercise of the power conferred by section 71A of the Jammu and Kashmir Municipal Act 2000, the government hereby notifies the rules for levy, assessment and collection of property tax in the municipalities and municipal councils of the Union Territory,” Housing and Urban Development Department Principal Secretary H Rajesh Prasad said in a notification.
The Administrative Council approved the proposal with the direction that the proposed property tax, which will take effect on April 1 2023, shall be levied at half of the proposed formula.
As per the rules of notification, a person liable to the property tax shall be liable to furnish to the officer authorised in this behalf particulars of property and tax due by May 30 financial year. Second installment of tax shall be furnished by November 30 along with proof of receipt of first installment.
What is Property Tax?
A robust and effective system of local self-government is foundational to the effective functioning of a democracy. A fundamental enabling condition for such a system to exist is to have adequate finances at the disposal of the institutions of self-government, and the more such finances are mobilized at the local level by these governments, the better for their effective functioning. One of the essential pillars of municipal financing the world over is property taxes.
