UP govt set to implement new property tax rules for all ULBs

LUCKNOW: The urban development department is all set to implement the Uttar Pradesh municipality tax rules notified by the govt on June 28.
The move will ensure the standardised set of rules for all the ULBs. It will ensure transparency and generate higher revenue, said additional director of regional centre for urban and environmental studies (RCUES) AK Gupta.
As per the new rule, the annual value of properties would be calculated based on a standardised format and formula.
All this while palikas and nagar panchayats were calculating the house tax based on the property tax rules framed in 2000.
Only 17 corporations had moved to the value-based system in 2014. The new rules would also give an option to property owners to come forward and pay the taxes voluntarily as per ‘statement of self-assessment’ format.
Uttar Pradesh municipality (tax on annual value of building or land or both) rules were mooted by the urban development department in November 2019.
With the green signal, 745 ULBs will also migrate to the value-based system from the prevailing rent-based system which was deemed obsolete more than a decade back.
A senior officer from the department said, “Some nagar palikas were collecting the tax as per the 2014 formula. But anyone could have challenged it in the courts and hence framing standardised rules for all the 762 ULBs was necessary.”
The annual value is going to be calculated as per the property classification which would be determined as per the width of the road, condition of the roof among other factors while the tax would be computed as per the area. On the lines of key cities of UP, incentives of up to 2% on the annual value would be on offer if rainwater harvesting is done, 40% of the plot area is covered by plantation among other measures.