Tripura Property Tax

Property taxes are considered to be the primary source of revenue for the State governments. Every property owner is taxable under the Property Tax laws of almost all States in India. The collected fund is utilised by the Government to improvise civic amenities for the public. In this article, we look at Tripura property tax in detail.

Classification of Property

There are four kinds of property which help the government to calculate tax based on specific criteria. The property divisions are given below.

Land - the most basic form without any construction or improvement.
Improvements made to the land - immovable creations like buildings and godowns.
Personal property - movable objects like vehicles and other equipment.
Intangible property.

Annual Rental Value

Annual Rental Value is the calculation of property tax that has to be paid every year by an individual. Taking into consideration the value of the land and building, the annual rate that is applicable is from 3% to 6%. This is determined by the municipality and the procedure to calculate property tax is mentioned in Form-A. The Zone of the taxing area is determined based on the location, type of construction, plinth areas, the age of the building, nature of using the holding and other criteria as laid by the Municipality. There is a certain refund of property tax on the Annual Rental Value and it is mentioned below.

For buildings that are below 25 years, a refund of 10% is applicable.
For buildings that are above 25 years, a refund of 20% is applicable.
Holding is used by the owner for the residential purpose of 10%.

Restrictions for Taxation

For taxation of land and building, a minimum of 1% and a maximum of 10% on the Annual Rental Value of holding by the Municipality.
For taxation of street lighting, a minimum of 1% and a maximum of 3% on the Annual Rental Value of holding by the Municipality.
For taxation of the conservancy, a minimum of 1% and a maximum of 10% on the Annual Rental Value of holding by the Municipality.

Imposition of Tax

Taxes are imposed and reduced by the Municipality as per the prescribed provisions.

Divisions of Municipality

The entire Municipality is divided into separate territories for better assessment of the taxes. These taxes are determined by the council subject to the condition that there may not be any variation on minimum and maximum rates. There are different divisions of municipalities in Tripura under which taxes are calculated.

Civic amenities such as water supply, street lighting, roads and drains.
Market and shopping centres.
Educational institutions.
Factories and industries.

Classification of Buildings

The buildings are classified as the following categories.

RCC/ load bearing building, etc.
Tiled or asbestos or GI roofed building.
Huts/ others.

Nature of the Building

Depending on the nature of use of the building, it is classified under three categories. They are

Residential
Commercial purpose
Other Uses

Revision Petition

The Executive Officer of the Municipality receives the revision petition and enters it in the register for disposal. The holder pays the revised tax and if the tax is reduced by the order in the revision petition, the tax paid in excess will later be adjusted in the future dues. The revision, amendment and alternation of the assessment will be made in any of the following cases.

When the ownership of holding changes.
When any tenancy or any rent in respect to holding changes.
When the nature of the use of holding changes.
When the land and building comprised in the holding is re-developed or substantially altered or imposed during annual valuation remain in force.
When the value of the land and building comprised in the holding is reduced leading to the demolition or if it has suffered depreciation from any accident or from any natural calamity during annual valuation remain in force.
When the holding has been acquired by purchase or by the State Government during annual valuation remain in force.
When the valuation or assessment has been set aside or declared void by order of the court implementing revaluation or re-assessment of a holding.
When it has been discovered that the holding has been grossly undervalued by reasons of any misrepresentation, mistake or error.
When an alteration has been implemented to correct any parent error.
The owner or occupier notices transfer of land within 90 days from the date of acquisition.
The Municipality implies a surcharge or transfers an immovable property situated within the concerned municipal area at the rate as determined by the Municipality maximum 1% area per cane on the value of the property.

Appeal

Every appeal under relevant rules will be entered in a register and then disposed to the competent Municipal Assessment Review Committee. The holder has to pay tax as fixed and if an excess is paid as per order of the Municipal Assessment Review Committee shall be adjusted in the future.
The Municipal Assessment Review Committee consisting the Chairperson and two to four members of the Municipality arranges for a meeting and reviews as per the rules and guidelines of the assessment.
The State Government by notification appoints a Municipal Assessment Tribunal in order to review the assessment of Property Tax made by the Municipal Assessment Review Committee.

Collection

Every municipality collects property tax in Form E, by issuing a duplicate receipt on tax collected for items as per Form F.
The collected tax is posted in demand draft and is entered as per Form E. This is computerized to generate a prompt issue of demand notice.
A progress report will be prepared at the end of every month and year. This is for the financial control of accounts. This progress will be made ward-wise and Municipality-wise.

Collection of Outstanding Arrears

If a holder fails to pay property tax during a year, the person will be treated as a defaulter. A list of all the defaulters will be created and they will be served with a demand notice that mentions the dues and fixing time to pay. According to Section 215 of Tripura Municipal Act, 1994, the issue will be reported to the concerned court.

Revision and Duration

A new valuation made periodically when new construction is reported.
Any alteration or amendment and review petition, assessment entered in the assessment register and property tax are valid from the date on which the list becomes effective in the municipality.

Amendment and alteration of assessment list of property tax

The Municipality conducts a meeting and changes the assessment list for a reason to write it down for a change of ownership in land and construction of buildings. Assessment list for property tax shall be effective from April of the following finalization or publication of assessment list for property tax.

Payment of Taxes

All payments have to be made by the owner in the Municipality office. If the tax is paid in April, the owner gets a refund of 7% on current demand for property tax excluding water tax. If the tax is not paid within a year, a penalty on arrear amount of tax of 10% per annum will be charged. If the taxpayer faces any difficulty in paying the tax, the State Government makes some arrangements for the individual to pay tax. Know more about Andhra Pradesh Property Tax