Chandigarh: The Haryana government on Friday rationalised Property Tax rates in areas under municipal corporations.
A decision to this effect was taken at a meeting of the state cabinet presided over by Chief Minister Bhupinder Singh Hooda here.
A government spokesman said the cabinet approved the recommendations made by a three-member committee headed by Parliamentary Affairs minister Randeep Surjewala on rationalisation of property tax in municipalities and simplifying the calculation formula in the state.
Earlier, property tax was calculated on the basis of Collector Rates based on current market price and with the annual increase in collector rates, the tax used to get increased, the spokesman said, adding the new formula of property tax is very simple.
"An owner of a property can now go for self-assessment. The earlier system was complicated, the new one will benefit those having small and medium size properties," he said.
It may be recalled that the committee headed by Surjewala was constituted by the government on July 2, 2013.
According to the methodology to calculate property tax, municipal corporations have been categorised into two categories, A-1 cities with municipal corporations of Gurgaon and Faridabad and A-2 cities comprising of Ambala, Panchkula, Karnal, Panipat, Rohtak, Hisar and Yamunanagar municipal corporations, the spokesman said.
Those owning residential properties of up to 300 sq yard would have to pay Re one per sq yard in A-1 cities.
The other four categories of sizes from 301 sq yard to more than two acres would have to pay between Rs 4 per sq yard and Rs 10 per sq yard, he said.
Rates for commercial space of upto 1,000 sq yd would be Rs 12 per sq yd and for more than 1,000 sq yard, it would be Rs 15 per sq yard, he said, adding basements which are used exclusively for parking will be exempted from property tax.
First Published: Saturday, October 05, 2013, 14:53