Thiruvananthapuram: Kerala government directed the local self government institutions to consider the fair value of land also to determine the building tax. The amendment has been introduced in the Finance (No.2) Bill, which recommend an increase in the building tax. The building tax rate in the urban areas will witness a considerable hike with the approval of the bill.
Currently, the final building tax is being estimated by evaluating the built-in area, age factor, building type, roofing, flooring, air conditioning system and path.
With the inclusion of fair value of land, the building tax may increase by 5 per cent annually. The buildings with an area less than 60 square metre and used by the owner to reside, will be exempted from the tax. The educational institutions and hostels functioning under the ownership or financial support of the central and state governments will also get relaxation from tax. Unaided schools will not be able to claim tax exemption.
The penalty for delay in the payment of the building tax or any fees to the local bodies has been increased from 1 per cent to 2 per cent. The secretaries of the local bodies are entitled to initiate revenue recovery proceedings and confiscate the properties for which the tax and other fees have not been paid.
The assembly will consider the bill on Thursday.