Assessment of House tax in Grampanchayats

The government of Andhra Pradesh has issued rules for levy of house tax under A.P.G.P. Act,1964 wide G.O.MS.No. 282 PR, (pts-viii) Department 12-3-1965 and the same rules along with other rules are made applicable in Andhra Pradesh Panchayat Raj Act 1994, through the G.O.MS.NO. 378 PR & RD ( relief) Dept. dated 28-06-1994, under Section 276 of APPR Act,1994 and Sections 8 and 18 of AP General Clauses Act,1891.

Section & Rule provision for House Tax

1. As per Section 61(1) of A.P.P.R. Act, 1994, the Grampanchayat shall levey House tas in accordance withthe Rules issued in G.O.Ms. 30 PR&RD (Relief) date 20/01/1995.
2. Rule 4 to 13 of said rules, relates House tax Assessment
3. Rules in issued in above G.O. are Amended by G.O.Ms.No.113 PR&RD(Pts.II) dt.22/03/1996
4. Further Amended by G.O.Ms.No.98 PR&RD (Pts.III)dated 14/03/2002.
5. Further more Amended by G.O.Ms.No.382 PR&RD (Pts.I) dated 14/12/2012
6. Number of classes shall not be less than 6.Rule 5(3)
7. Rule 4, Provides for levy of tax on Proportionate, or on systematic progression rate with value.
8. If Proportion rate adopted It may group the houses in the village in to classes to simplify calculation and collection of tax.Rule.5(1)
9. If Progressive rate adopted, it shall prescribe principles of classification and settle precise number and limits of each class.Rule.5(2)
10. Grampanchayat shall not arrange classes to effect the principle of taxation whether proportionate or progressive to decrease the tax as value of building increases. Rule.4

As per the sub-section (1) of Section 61 of A.P.P.R. Act, 1994 the House Tax shall be levied on the basis of Capital Value of the Building or on Anual Rental Value of Building or house.Further it may be note that as per Rule 4 of Rules issued in G.O.Ms.No. 30 PR&RD (Relief) date 20/01/1995 stipulates that Rate of Tax for assessing the House tax shall be followed either Proportionate rate or Progressives rate. Thus the Grampanchayat may follow to levy of house tax any one out of four methods.

Contd.Page.2

:: 2 ::

Definition of House, building & hut as per Act

1. Under section 2 (19) of APPR Act 1994, “House” means a building or hut fit for human occupation, whether as a residence or otherwise, and includes any shop, workshop or ware house or any building used for garaging or parking buses or as a bus stand, cattle shed ( other than a cattle shed in an agricultural land, poultry shed or dairy shed)
2. Sheds put up by the occupants of land in the markets belonging to Grampanchayat are building within the meaning of section 2 (3) of the APPR Act. They are assessable to house tax ( vide G.O.MS.No. 1601 L.A dated 10-06-1941)
3. Electrical motor pump sheds in the Agriculture fields are buildings, are liable to house tax vide G.O.MS.No. 1126 PR Dept. dated 26-06-1963

What is not house, Building, hut?

1. A basement
2. A detached wall with no building at all inside the wall or walls
3. Building under construction
4. A tent
5. Bunks easily movable
6. Bunks were easily movable and therefore, not be considered to be a building

Note:- “Buildings” Constructed without permission liable to house tax G.O.MS.No. 381 L.A Dated. 02-03-1948

Contd.Page.3

:: 3 ::

Buildings exempted from levy of house taxes per G.O.Ms.No.282 PR,(pts-viii) Department 12-3-1965, under A.P. Grampanchayat Act,1964

1. Light houses
2. Canteens, clubs used for employees recreation provided by Industries and factories for the benefit of employees
3. All classes of huts and houses whose value doesn't exceed limits. Capital value Rs.500, Rental value Rs.25 per annum
4. Building set apart for public worship
5. Choultries no rent charged if charged it is used exclusively for charitable purpose
6. Govt. Educational institutions, hostel and libraries and public buildings used for charitable purpose
7. Ancient monuments protected under Ancient monument act 1904
8. Charitable hospitals
9. Central Government buildings (But liable for service/user charges)
10. Railway buildings.
11. Buildings owned by Grampanchayat

Buildings exempted under Andhra Pradesh Act, 1994 and Rules issued vide G.O.Ms. 30 PR&RD (Relief) date 20/01/1995

1. N.G.O. Homes
2. Buildings owned by servicemen, ex-servicemen and widows of ex-servicemen subject to single occupation
3. Poultry sheds and it’s annexes

Note: After issue of G.O.No.30 Dated.20-01-1995 Exemption sanctioned for Non-Gezetted Officers Association buildings were also liable for tax. Only Poultry sheds and houses belonging to Ex-Servicemen are exempted.

Contd.Page.4

:: 4 ::

BASIS FOR LEVY OF HOUSE TAX

House tax referred to in clause (a) of sub-section (1) of section 61 shall, subject to the rules given in G.O.MS.No. 30 dated 20.01.1995 and to such other rules as many be prescribed, be levied on all houses in the village on any one of the following basis namely

1.  Annual rental value, or
2.  Capital value, or
3.  Such other basis as many be “prescribed”

Principles for Assessment of House Tax

1. Capital value of house shall be deemed to the total of estimated value of the land & estimated present cost of erecting the house after deducting depreciation
2. Annual value of house shall be deemed to be gross annual rent at which house may reasonable let-out, less deduction 10% for repairs
3. If annual value cannot be estimated the annual value shall be deemed to be six percent of its capital value
4. Rate of house tax Rule 3 of rules issued in G.O.Ms.No.282 dated 12-03-1965

Contd.Page.5

:: 5 ::

Minimum and maximum rates of house tax is prescribed by the Government of Andhra Pradesh, but the Grampanchayat has to decide the rate of house tax between such minimum and maximum Rates

Basis of levy of house tax	Minimum rates per year	Maximum rates per year
1	2	3
a) If the tax is levied on the capital value	1/8 the percent of the capital value	1 percent of the capital value
b) If the tax is levied on the basis of annual rental value	Two percent of the annual rental value	Twenty percent of the annual rental value
c) If the tax is levied on the basis specified in rule (2) of Rules issued in G.O.Ms.No.282 P.R. dated.12-02-1965
i. Terraced	Rs.1.60 for every 10 Sqm or part thereof of the plinth area or part thereof of the plinth area	Rs.6.00 for every 10 Sqm or part thereof of the plinth area
ii. partly terraced and partly tiled or thatched	Rs.1.00 for every 10 Sqm or part thereof of the plinth area	Rs.3.00 for every 10 Sqm or part thereof of the plinth area
iii. Tiled	Rs.0.75 paise for every 10 Sqm or part thereof of the plinth area	Rs.2.00 for every 10 Sqm or part thereof of the plinth area
iv. partly tiled and partly thatched,	Rs.0.50 paise for every10Sqm or part thereof of the plinth area	Rs.1.50 for every 10 Sqm or part thereof of the plinth area
v. thatched	Rs.0.37 paise for every 10 Sqm part thereof of the plinth area	Rs.1.00 for every 10 Sqm or part thereof of the plinth area

Contd.Page.6

:: 6 ::

Method for asserting capital value of Building

1. Rule 6 (1) for the purpose of assessment of house tax, the capital value of a house shall be deemed to be the total of the estimated value of the land and the estimated present cost of erecting the house after deducting for deprecation a reasonable amount which shall in no case be less than 10% of such cost
2. Provided that machinery and furniture shall be excluded from valuation under this sub rule Guidelines to be fallowed while making assessment for imposition of House Tax.

The assessing authority shall take in to consideration fallowing parameter while assessing the house tax

(Para 27) Donkada Ammajamma V. Srikakulam Municipality, Srikakulam 2002(4) ALD822.

1. Type of construction
2. Age of the building
3. The locality of the building
4. The purpose for which it is put
5. The plinth are of the building
6. Open space available for the building
7. Compound wall
8. Number of portions of the Building
9. Conveniences available to each portion of the building or common facilities.
10. Supply of protected water
11. Drainage facility
12. Type of Roads
13. Street lights
14. Rental value of similar building in the locality
15. Advantages of locality
16. Disadvantages of locality
17. Deduction permissible under the Act and rules
18. Shall not be influenced on account of inflated or deflated rent

Contd.Page.7

:: 7 ::

Levy of House tax on the basis of capital value and on proportionate rate of tax an illustration

• A system that requires to pay same percentage for all types of houses according to its value
• A proportional tax applies same tax rate across low, middle, and high value of houses
• A proportional tax is called a flat tax
• For example in a proportionate tax system all taxpayers may required to pay 0.40% of value of house

Parameters for Assessing House Tax

1. Land area is 100 Sq.Yards
2. House with RCC measuring 20 feet width and 30 feet length
3. Land value assuming Rs.500 per Sq.yard (This rate may vary with location and area of construction)
4. Assuming present construction cost of Rcc. Rs.450/Sft(This will vary with nature and location of construction)

Total land value is. 100X500=	Rs. 50,000-00
House built-up area is 20x30=	600 Sq.ft.
Total construction cost of building is(Multiply the building area by the cost of construction)Area. 600x Rs. 450-00 per Sft=	Rs. 2,70,000-00
Less depreciation 10% on present cost of construction that is Rs. 2,70,000-27,000=	Rs. 2,43,000-00
Land value Rs.	Rs. 50,000-00
Building value after depreciation	Rs. 2,43,000-00
Total capital value of the building including land cost is	Rs. 2,93,000-00
If GP resolved to levy Proportionate Tax @ Rs.0-50 paise on Rs.100-00 capital value of building (Rate will vary according to grampanchayat resolution)Total Capital value of building is	Rs. 2,93,000-00
House tax shall be arrived by multiplying Cost with Rate of Tax ie., 2,93,000x0.50/100=	Rs.1,465-00
Library ces @ 0-08 paise on House tax under sec 20(1) (a) of the AP Public libraries Act 1960 (1,465-00x0.08 /100)	Rs. 117.20
+User charges as per GO.Ms.No.97 dated 14-03-2002Lighting tax 10% on House tax	Rs. 146.50
Water tax 20% on House tax	Rs. 293.00
Drainage tax 10% on House tax	Rs. 146.50
Total House tax on building	Rs. 2,168.20

Contd.Page.8

:: 8 ::

If GP resolves for assessment of house tax with Progressive rate on capital value of building

1. A Progressive tax is one in which the tax rate increases as the Value of building being taxed increases.
2. In this system lowest value of house marginal tax rate
3. More value tax rate will be more.

1. Total Capital value of building is Rs.2,93,000-00
2. Method of assessment of house tax on annual rental value of Building
3. The annual rental value of house shall be deemed to be gross annual rent at which house may reasonably be expected to let-out
4. Less 10% deduction on repairs or whatsoever
5. Any Government building or any building not ordinarily let on the gross annual rental value is 6% of it’s capital value.
6. Method of calculation of house tax on the basis of annual rental value on proportionate rate of tax
7. If GP resolved 10% House Tax on Annual Rental Value
8. Assuming that a building fetching monthly total rent of Rs.1465
9. Rs. 1465-00X12 months= Rs. 17580-00
10. Total annual rent. Rs.17580-00
11. Less 10% for repairs or other purpose
12. Taxable Annual Rental Value is Rs.17580-1758=Rs. 15,822-00
13. H ouse tax @10% of annual value =15,822-00X10/100= Rs.1582-20.
14. Library Cess @0-08 paisa on house tax= 1582-20X8/100=Rs.126.56
15. Lighting tax @ 10% on house tax=1582-00X10/100= Rs.158-20
16. Drainage tax @10% on house tax=1582X10/100=Rs. 158.20
17. Water tax @15% on house tax= Rs. 1582X15/100= Rs.237-30
18. Total House Tax on building Rs.2,262-46

Contd.Page.9

:: 9 ::

Method of calculation of house tax on the basis of annual rental value on progressive rate of tax

Method of calculation of house tax on the basis of Plinth area of House

1. Assuming a building Plinth area 600 Sft with RCC
2. Convert the value from Sft to Mts. 600/9 =66.66 Sqm

House tax @ Rs. 4.00 per 10 Sqm.=66.66X4/10=	Rs. 26-66
Library Cess @0-08 paisa on house tax= 26.00X8/100=	Rs. 2-08
Lighting tax @ 10% on house tax=26.00X10/100=	Rs. 2-60
Drainage tax @10% on house tax=26.00X10/100=	Rs. 2-60
Water tax @15% on house tax =26.X15/100=	Rs. 3.90
Total House Tax on building is	Rs. 37-84

Note:-These Rates are fixed in the year 1965 and same are not revised so far, there fore adopting this method is not advisable in Grampanchayats

Caliculation to get the Capital Value of building constructed with deferent Roofs

House construction details required for Assessing the House Tax.

1. Land Area 300 Square yards
2. Total built-up area 1200 Sft.
3. R.C.C. Area 500 Sft, Tiles area 350 Sft and Grass roof are 350 Sft.
4. Land value @ Rs.500 per yard
5. R.C.C. costruction cost @ Rs.450 per Sft
6. Tiles Roof costruction cost@ Rs.250 per Sft
7. Grass Roof costruction cost @ Rs.60 per Sft.
8. Depreciation minimum 10%
9. House tax rate Rs. 0-50 on Rs.100/- capital value
10. Library Cess. @8 paise on Rounded Rupee of house tax
11. Lighting tax @ 10% on house tax
12. Water Tax @ 20% on house tax
13. Drainage tax @ 10% on house tax

Contd.Page.10

:: 10 ::

Process of assessment with proportionate rate on capital value of building

Construction cost of R.C.C.Roof area 500 X 450=	Rs. 2,25,000-00
Construction cost of Tiles Roof area 350 X 250=	Rs. 87,500-00
Construction cost of Grass. Roof area 350 X 60 =	Rs. 21,000-00
Total Building const cost	Rs. 3,33,500-00
Depreciation minimum 10%	Rs. 33,350-00
Net Building value	Rs. 3,00,150-00
Land value Rs. 500 per Sq.Yard 500 X300	Rs. 1,50,000-00
Total value of Building	Rs. 4,50,150-00
House tax @ 0.50 ps. On 100/ capital value	Rs. 2,250-75
Library Cess @ 8%	Rs. 180.00
Add User charges on House Tax, as per G.O.97 PR&RD(Pts-III) dt.14/03/2002
Lighting Tax @ 10% on house tax	Rs. 225.00
water Tax @ 20% on House tax	Rs. 450.00
Drainage Tax @ 10% House tax	Rs. 225.00
Total House tax	Rs. 3,330.75

If GP resolved for Progressive rate of Tax on capital value of Building

Total Capital value of building is Rs.4,50,150-00

Class. No.	Range	Value	Rate of Tax	Amount of Tax
I	0 to 5,000	Rs. 5,000-00	Exempted	Rs. 0-00
II	5,001 to 50,000-00	Rs. 45,000-00	0.14%	Rs. 63-00
III	50,001-00 to 1,00,000-00	Rs. 50,000-00	0.18%	Rs.90-00
IV	1,00,001-00 to 5,00,000-00	Rs. 3,50,150-00	0.20%	Rs. 700-30
V	5,00,001-00 to 10,00,000-00	Rs. 0-00	0.30%	Rs. 0-00
VI	10,00,001-00 to 50,00,000-00		0.40%	Rs. 0-00
VII	50,00,001 and Above.		0.50%	Rs. 0-00
House tax				Rs. 853-30
Library cess. @ 8 paise on house tax		Rs. 853-30	8%	Rs. 68-24
Lighting tax @ 10 % of house tax		Rs. 853-30	10%	Rs. 85-30
Water tax @ 20 % of house tax		Rs. 853-30	20%	Rs. 170-60
Drainage tax @ 10% of house tax		Rs. 853-30	10%	Rs. 85-30
Total House tax on Building including user charges				Rs.1,262-74

Contd.Page.11

:: 11 ::

GP resolved for Progressive rate of Tax on capital value

Method of assessment of house tax on annual rental value of Building

1. The annual value of house shall be deemed to be gross annual rent at which house may reasonably be expected to let-out
2. Less 10% deduction on repairs or whatsoever
3. Any Government building or any building not ordinarily let on rent, or can’t be ascertained, the gross annual rental value is 6% of it’s capital value
4. If GP resolved 10% House Tax on Annual Rental Value
5. Assuming that a building fetching monthly total rent of Rs.3000

Rs3000X12 months= Total annual rent.	Rs.36,000-00
Less 10% for repairs or other purpose Rs.36000-3600=	32,400-00
Taxable Annual Rental Value is Rs.36000-3600=	32,400-00
House tax @10% of annual value =32400X10/100=	3,240-00
Library Cess @0-08 paisa on house tax= 3240X8/100=	259-20
Lighting tax @ 10% on house tax=3240X10/100	324-00
Drainage tax @10% on house tax=3240X10/100	324-00
Water tax @15% on house tax =3240X15/100	486-00
Total House Tax on building	4,633-20

Contd.Page.12

:: 12 ::

A Progressive tax is one in which the tax rate increases as the Value of building being taxed increases.

In this system lowest value of house marginal tax rate More value, more tax rate

Sl.No	Range of Rental value	Value for Tax	Rate of Tax	Amount of Tax
I	0-00 to 1,000-00	Exempted		Rs.0.00
II	1,001 to 5,000-00	Rs.4,000-00	5%	Rs.200.00
III	5,001-00 to 10,000-00	Rs.5,000-00	8%	Rs.400.00
IV	10,001-00 to 15,000-00	Rs.5,000-00	10%	Rs.500.00
V	15,001-00 to 20,000-00	Rs. 5,000-00	12%	Rs.600.00
VI	20,001-00 to 30,000-00	Rs.10,000-00	15%	Rs.1,500.00
VII	30,001-00 to 50,000-00	Rs.2,400-00	18%	Rs.432.00
VIII	50,001-00 to1,00,000-00	Nil	19%	Rs.0.00
Total House Tax				Rs.3,632-00
Add L.Cess. & user charges (8+10+20+10)48%				Rs.1,736-36
Total house tax payable.				Rs.5,368-36

Pages: 1 2 3 4 5 6 7 8 9 10 11 12

FUNCTIONS OF PANCHAYAT SECRETARY OF ANDHRA PRADESH

Rules- Rules relating to the functions of Panchayat Secretary under section 268 read with 36(6) of Andhra Pradesh Panchayat Raj Act, 1994- Orders- Issued

PANCHAYAT RAJ& RURAL DEVELOPMENT (MDL.II) DEPARTMENT

G.O.Ms.No.199,

Dated. 18-05-2007

1)    G.O.Ms.No.4.P.R. &R.D(Mdl.II) Dept.dt.7.01.2002

2)    G.O.Ms.No.1950, Revenue(VA.I) Department.dt.30.12.2006

3)    G.O.Ms.No.105,Revenue (VA.I) Department dt.31.01.2007

4)    From the Commissioner P.R.&R.E. Hyderabad Lr.No.122/CPR&RE/B12007, dated.02.02.2007

-:oOo:-

ORDER:

1.        In the reference 1^st read above, Government have issued Rules relating to functions of Panchayat Secretary.

2.        In the reference 2^nd read above, the Revenue (VA.I) Department have issued orders for creation of Revenue functionary at the village level under the exclusive control of Mandal Revenue Officers to handle the work relating to Land and Revenue matters at Village Level.

3.         In the reference 3^rd read above, the Revenue (VA.I) Department have also issued orders transferring the erstwhile 6752 Village Administrative Officers working as Panchayat Secretaries and 2800 erstwhile  Village Administrative Officers working as part time Assistants under the control of Mandal Parishad Development Officers in Panchayat Raj & Rural Development Department to the Tahsildars of Revenue department w.e.f. 8.02.2007. Orders were also issued therein relating to Job Chart of Village Revenue Officers with 51 functions and to recast the Job chart of Panchayat Secretaries working the Panchayat Raj Department.

4.         In the reference 4^th read above, the Commissioner, Panchayat Raj & Rural Employment, Hyderabad has stated that consequent on separation of revenue functionary from the Panchayat Raj Department there is every need to revise the existing Job Chart of Panchayat Secretaries issued in the reference 1^st read above.

5.         Government after careful examination of the matter, have accepted the proposal of the Commissioner, Panchayat Raj & Rural Employment, Hyderabad and decided to issue a fresh Rules relating to functions of Panchayat Secretary working in Panchayat Raj Department in supersession of the Rules issued in the reference 1^st read above.

6.         Accordingly, the appended notification will be published in the extraordinary issued of the Andhra Pradesh Gazette, dated 19-05-2007.

7.         The commissioner, Printing Stationery and Stores Purchase (Printing Wing), A.P. Hyderabad is requested to publish the notification and furnish 1000 copies of the same for use at Government.

           

NOTIFICATION

            In exercise of the powers conferred under section 268 read with sub section (6) of section 36 of the Andhra Pradesh Panchayat Raj Act, 1994, (A.P.Act.No.13 of 1994) and in supersession of the Andhra Pradesh Panchayat Raj (Functions of Panchayat Secretaries) Rules, 2002 issued in G.O.Ms.No.4 P.R. &R.D. (Mdl.II) Department, dated 07-01-2002, the Governor of Andhra Pradesh hereby makes the following rules.

RULES

Short  Title:  These rules may be called the Andhra Pradesh Panchayat Raj (Functions of Panchayat Secretary) Rules, 2007