THE ANDHRA PRADESH MUNICIPALITIES (ASSESSMENT OF TAXES) RULES, 1990
[1]THE ANDHRA PRADESH MUNICIPALITIES (ASSESSMENT OF TAXES) RULES, 1990
PREAMBLE
In exercise
of the powers conferred by Sub-section (1) of Section 326 read with sub-section
(2) of Section 87 of the Andhra Pradesh Municipalities Act, 1965 (Act No. 6 of
1965) and in supersession of the Andhra Pradesh Municipalities (Assessment of
Taxes) Rules, 1969 issued in G.O.Ms. No. 848, M.A., dated: 7th November, 1969
and the Andhra Pradesh Municipalities (Determination of Capital Value and
Annual Rental Value of buildings and lands and Allowance of Rebates) Rules ;
1968 issued in G.O.Ms. No. 41, M.A., dated : 25th January, 1968 and G.O.Ms. No.
677, M.A. dated : 13th August, 1969, the Governor of Andhra Pradesh hereby
makes the following rules for the assessment of taxes by the Municipalities in
the State.
Rule - 1. Short title.
These Rules may be called the Andhra Pradesh Municipalities (Assessment
of Taxes) Rules, 1990.
Rule - 2. Definitions.
In these rules:
(i)
'Act' means
the Andhra Pradesh Municipalities Act, 1965.
(ii)
'Form' means
the Form appended to the rules;
(iii)
'Schedule
II' means Schedule II to the Act;
(iv)
'Zone' means
the area as notified in Form 'A';
(v)
'Plinth area
of a building' means the area arrived at by multiplying the length of the
building with the breadth as measured outside of the basement level;
(vi)
Total plinth
area of a building' includes the plinth area of all cellars, ground floor and
all the floor above the ground floor of a building;
(vii)
'Houses
constructed for Urban Poor' means houses constructed through agencies of State
Government under Weaker Section Housing Scheme ; and
(viii) 'Multi Storyed Building' means a building with more than ground and
three floors.
Rule - 3. Annual Rental Value.
(1)
The Annual
Rental value of lands and buildings shall be fixed with reference, to the
monthly or yearly as the case may be fixed by Commissioner as indicated in Form
'A', with reference to its location, type of construction, plinth area, age of
the buildings, nature of use to which it is put and such other criteria as may
be specified from time to time, less a deduction at the rate of ten percent for
buildings up to the age of twenty five years and twenty percent for the
buildings above the age of twenty five years of that portion of such gross
Annual Rent which is attributable to the building and the said deduction shall
be in lieu of all allowances for the repairs or on any other account
whatsoever.
[2][(2) Residential quarters of the State Government, Central Government,
Public sector undertakings, Institutions, Industries, Companies shall be
treated as owner occupied; and a rebate of 40% of Annual Rental Value which is
attributable to the building shall be allowed as in the case of owner occupied
residential buildings.]
Rule - 4. Division of the Municipality into Zones.
The entire
Municipal Area shall be divided into convenient territorial zones for the
purposes of assessment of Taxes based on the following factors, namely.
(a)
Civil
amenities like water supply, street lighting, Roads and Drains,
(b)
Markets and
Shopping Centers,
(c)
Educational
Institutions,
(d)
Banks,
Postal Services, Public Offices,
(e)
Medical
Institutions,
(f)
Factories
and Industries, and
(g)
Such other
relevant factors.
As far as possible, the number of Zones should be kept at the minimum.
Rule - 5. Classification of Buildings.
After division of Municipality into territorial zones, the buildings
situated in each zone shall be classified as follows based on its nature of
construction;
(a)
RCC posh
buildings. RCC buildings with superior quality of wood, better type of flooring
and Sanitary fittings, and attached bathrooms, which improve higher cost of
construction.
(b)
RCC Ordinary
buildings. RCC buildings with ordinary type of wood, ordinary flooring and
Sanitary fittings.
(c)
Madras
Terraced or Jack Arch roofed or Steno slabs or slates roofed buildings;
(d)
Mangalore
tiled roofed or Asbestos roofed or G.I. roofed buildings.
(e)
Country
titled buildings.
(f)
Huts.
(g)
Any other
building not covered above.
Rule - 6. Nature of use of the building.
After
classification of the buildings based on their type of construction, they shall
be further classified into the following categories taking into consideration
the nature of use of the buildings;
(a)
Residential.
(b)
Shops,
Shopping Complexes.
[3][(c) Public use, i.e.. Office Complexes, Public and Private Offices,
Hospitals and Nursing Homes, Banks, Educational Institutions. In respect of
buildings intended for public use, they shall be further categorised as
follows.
(i)
Office
Complexes, Public and Private Offices and Banks;
(ii)
Hospitals
and Nursing Homes; and
(iii)
Educational
Institutions.
(d) Commercial purposes i.e.,
Hotels, Lodges. Restaurants, Go downs and other business establishments. In
respect of buildings used for Commercial purposes, they shall be further
sub-categorised as follows.
(i)
Hotels.
Lodges, Restaurants; and
(ii)
"Go
downs and other business establishments.]
(e) Industrial purposes i.e.,
Factories, Mills, Workshops and other Industries.
(f) Cinema Theatres or places of
public entertainment.
(g) Any other use not covered
above.
Rule - 7. Fixation of monthly or yearly rent.
(1)
All
buildings located in a Zone shall be classified based on type of construction
and nature of use. Thirty-six categories of buildings can be identified in each
zone based on the above criteria. The Commissioner shall gather the information
relating to the prevailing rental value of buildings of various categories in a
Zone and arrive at average monthly rent or yearly rent fixable for each
category of building per square meter of plinth area. In respect of all multi
storeyed buildings rent shall be fixed separately for the following categories;
(a)
Cellar.
(b)
Ground and
First floor.
(c)
Other
floors.
[4][(1A) The Commissioner may provide sub-categorisation of localities in a
Zone particularly for building used for shops and shopping & complexes
abutting to the main roads, lanes and sub-lanes in Zones having commercial
importance wherever necessary and warranted and fix separate rates for such
buildings.]
(2)
The
Commissioner then shall fix the monthly or yearly rent for each category in a
zone per square meter of plinth area and notify the rate of monthly or yearly
rent so fixed in Form 'A' for adopting the said rates for fixation of monthly
or yearly rental value of buildings in a zone and for information of the
public. The Commissioner shall issue a notification in Form 'A' furnishing the
localities, areas included in the zone and particulars of Door numbers included
in the zone. The notification in Form 'A' shall be published in local
newspapers having circulation in the District and District Gazette for
information of the public.
[5][Note. Any notification issued prior to this amendment by the
Commissioner shall be treated as a draft notification.]
(2-A) Since the restructuring of property tax is introduced for the
first time, to avoid anamolies and aberrations in the monthly rental-value per
square meter of plinth area already notified by the Municipal Commissioners,
it is open to the Regional Director-cum-Appellate Commissioner to issue
such directions to Municipal Commissioner of concerned Municipalities as deemed
fit in the matter.
(3)
The
Commissioner shall obtain information of all buildings in respect of plinth
area, type of construction, age of the building, nature of use and fix monthly
or yearly rental value as per the rate of monthly rents notified for each
category of a building in a zone The property tax assessment list of buildings
shall be prepared in Form 'B'.
(4)
The rates of
monthly or yearly rents for each category of buildings in a zone shall be
revised once in five years taking into consideration the prevailing rental
values.
(5)
(a) In the
case of any Government or Railway Building or any building or a class to
buildings not ordinarily let the gross annual rent of which cannot in the
opinion of Commissioner be estimated, the annual rental value of the premises
shall be deemed to be nine per cent of the estimated value of the land and the
present cost of erecting the building after deducting a reasonable amount
towards depreciation which shall in no case be less than ten per cent of such
cost.
(b) For the purpose of estimating the cost of erection of Government or
railway building or any class of building not ordinarily let out, they shall be
classified into various categories with reference to the location, type of
construction, plinth area, and nature of use. The cost of erection of such
building shall be worked out on plinth area basis in consultation which the
concerned Local Engineer belonging to Roads and Buildings Department from time
to time.
(c) In the case of Government and Railway Buildings which are used for
office as well as residential purposes, the portions that are used for office
purposes shall be assessed on the basis of the capital value and the portions
that are let out shall be assessed on the basis of the annual rental value.
(d) In the case of items where in varying rates are provided, the
Municipal Councils shall adopt the rates found suitable for the particular
Municipal Area after taking the local conditions into account. The Commissioner
may also increase the rates so adopted by the Municipal Councils by not
exceeding 10% over the rates aforesaid for superior quality of wood, better
type of flooring and fine plastering depending upon the workmanship and cost
involved. Where the entire roof is not of the same description, appropriate
rates shall be adopted for the different types of roofs for arriving at the
total cost of erection. The rate of cost per square meter of plinth area shall
be determined in consultation with the concerned Local Engineer belonging to
Roads and Buildings Department in consonance with the Price levels prevailing
at the time of such revision.
(e) In the case of buildings which are partly occupied by the owner and
partly let out on rent, property tax shall be levied as per Rules 5 and 3 on
owner occupied portions and rented portions respectively.
(f) The capital value of the building referred to in Sub-rule 7(5)(a)
shall be the total of estimated value of erection of the building arrived at
under Sub-rule 7(5)(b) above after allowing for depreciation in view of all
allowances for repairs or any other account whatsoever as shown in the table
below and the cost of land occupied by the building including the cost of land
appurtenant to the building as laid down in Section 87 of the Andhra Pradesh
Municipalities Act, 1965 (Act 6 of 1965).
THE TABLE
|
List of
building |
Maximum
depreciation allowed |
|
(1) |
(2) |
|
25 years
and below |
10% |
|
above 25
years |
20% |
(g) For the purpose of determining the value of land the Commissioner
shall obtain the market value of lands fixed by Registration Department for the
purpose of Registration and adopt the said rates for arriving at the value of
the land.
Rule - 8. Vacant Land Tax.
(a)
In the case
of lands which are not used exclusively for agricultural purposes and are not
occupied by or adjacent or appurtenant to building, the capital value of lands
fixed by Registration Department for the purpose of Registration shall be
adopted. In case, the vacant land is purchased at a higher price than the
market value fixed by the Registration Department, the value mentioned in the
registered document shall be adopted for fixation of the capital value of the
vacant land.
Rule - 9. Property tax Assessment Lists.
(1)
The property
tax on land which is not exclusively used for agricultural purposes and is not
occupied or adjacent and appurtenant to buildings shall not be more than 2% of
the capital value of the land.
(2)
The property
tax assessment list of lands shall be prepared in Form 'C'.
(3)
Before the
commencement of assessment of buildings and lands, the Commissioner, shall
prepare either personally or under his personal supervision assessment lists
for each ward in Form 'B' or Form 'C' as the case may be, containing the
following particulars, namely.
(a)
The
particulars of the existing assessment, for the different properties complied
from the current demand register, and
(b)
The
particulars of the revised assessment, the total amount of the revised
assessment in each case being written in words.
Rule - 10. Approved Assessment Lists.
[6][(1) As soon as the assessment lists of all the wards are completed, the
Commissioner shall cause the notice referred to in sub-rule (1) of Rule 10 of
Schedule-II of the Andhra Pradesh Municipalities Act, 1965 published in the
half year preceding that in which the revised assessments intended to take
effect.]
(2) The special notice required
under Rules 4, 10 or 11 of Taxation and Finance Rules contained in Schedule II
of the Act shall be in Form 'D'.
Rule - 11. Revision.
Revision petitions shall on receipt be entered in a register in Form 'E'
appended to these rules. A serial number shall be given to each petition and
the orders of the Commissioner shall be recorded on the petition as well as in
the said register.
Rule - 12. Monthly Revision Lists.
(1)
Bill
Collectors, Revenue Inspectors or other out door officers, specially selected
for the purpose shall submit for their respective wards monthly revision lists
in Form 'F', 'G' which shall contain particulars of all buildings, namely.
(a)
the
construction, reconstruction, or enlargement of which is completed during the
month;
(b)
newly
occupied during the month together with the names of the owners of such
buildings and the dates of such completion or the new occupation, as the case
may be;
(c)
whenever
there is a change in the occupation of the building i.e., from owner occupied
to rented and vice versa, and;
(d)
whenever
there is a change in the usage of the building;
(2)
Where
between one general revision and another any property is brought under
assessment for the first time or the assessment of any property is altered,
particulars thereof shall be entered in the mutation register and the necessary
addition or correction shall be made in the demand register.
(3)
Where a
remission of property tax is granted under Sub-section (2) of Section 94 of the
Act or otherwise particulars thereof shall also be noted in the mutation
register and the necessary correction shall be made in the demand register.
Rule - 13. Tax on Carriages and Carts and Tax on Animals.
(1)
The notice
referred to in Sub-section (3) of Section 109 read with Section 113 of the Act
shall be in Form 'H'.
(2)
As soon as
possible after the commencement of a year, a yearly list of all persons liable
to tax on carriages and carts or on animals shall be submitted by the Bill
Collectors, the Revenue Inspectors or other out door officer specially selected
for the purpose for their respective wards. Monthly revision lists in respect
of persons liable to either of the taxes shall also be submitted by the said
officers. The yearly and monthly lists shall be in Form I or 'J' as the case
may be.
Appeal
Rule - 14.
All appeals
under Rule 22 of Taxation and Finance Rules embodied in Schedule-II shall on
receipt be entered in a register which shall be in Form 'K'. A serial number
shall be given to each appeal and the orders of the Appellate Commissioner
shall be recorded by him on the appeal and also got entered in the said
register.
Rule - [15.
Any tax
lawfully levied by or on behalf of the council at the commencement of these
rules shall, notwithstanding any changes in the method or manner of assessment
under these rules be continued till assessment under these rules in made.][7]
Rule - 16.
[8][* * *]
[1] R.S. to Part I (Ext.) A.P. Gazette, dated 15-11-1990.
[2] The original Rule 3 renumbered as sub-rule (1) and sub-rule (2) added
by G.O.Ms. No. 663, M.A. & U.D., dated 28-11-1992 (w.e.f. 1-10-1992).
[3] Clauses (c) & (d) sub. by G.O.Ms. No. 663, MA & UD, dated
28-11-1992, (w.e.f. 1-10-1992).
[4] Inserted by ibid.
[5] Inserted by G.O.Ms. No. 663, M.A. & U.D., dated 28-11-1992 (w.e.f.
1-10-1992) and substituted by G.O.Ms. No. 374. MA & UD. dated 7-7-1992.
[6] Substituted by G.O.Ms. No. 663, M.A. & U.D., dated 28-11-1992
(w.e.f. 1-10-1992) and again Substituted by G.O.Ms. No. 526. MA & UD, dated
25-8-1993, vide R.S. to Part I (Ext.), A.P. Gaz., dated 28-8-1993.
[7] Inserted by G.O.Ms. No. 539, dated 6-11-1991.
[8] Rule 16 added by G.O.Ms. No. 624, MA& UD (TC-I), dated 7-10-1993
(w.e.f. 29-10-1990) and omitted by G.O.Ms. No. 159, M.A., dated 13-3-2000.