Corporation revises property tax structure

KOCHI: The Kochi Corporation has revised the property tax structure, which will now be based on the floor area, instead of annual rent hitherto followed. A notification in this regard was published on Thursday. The decision to revise the structure is based on the order issue by the Local Self Government Department.At present, property tax forms a fixed percentage of the annual rent a building could fetch the owner. As per the revised structure, it will depend on a fixed rate per square metre land. Other aspects like the location of the building (zone), road connectivity, size of the building and the type of floor, roof and walls will also be considered.Accordingly, the Corporation has divided the 74 wards under its limit into three zones- primary, secondary and tertiary. Compared to those in the primary zone, buildings in the secondary and tertiary zones will be lower by 10 per cent and 20 per cent respectively. Buildings located near public paths less than 1.5 metres wide will get an exemption of 15 per cent.Buildings with a floor area of less than 75 sqm will get 25 per cent tax exemption, while buildings below 125 sqm will get 10 per cent reduction on taxes. The tax for buildings constructed with quality wood, marble, granite and vitrified tiles will be increased by 15 per cent. The property tax on air-conditioned buildings will also be hiked by 10 per cent. Tax on buildings given on rent will be increased by 50 per cent and that on resorts, star hotels and massage parlors will be hiked by 75 per cent.The revised basic tax for housing, hospitals and educational institutions is Rs 20/sqm.