New property tax regime in Kozhikode city

07 Mar, 2009

The Kozhikode Corporation will adopt a new property tax regime for residential and commercial buildings from this year with retrospective effect from April 1, 2008. The tax system is being rationalised after 15 years.
In the existing system, property tax is calculated based on the annual rental value. The purpose of a building and its type are usually not determined. The new system takes into account the carpet area of the building.

The city has been divided into primary, secondary and tertiary zones. An area having a government or a quasi-government office, educational institution, commercial complex, market, bus station, railway station and hospital will be in the primary zone. The places surrounding a primary zone with potential to evolve into developed areas will be in the secondary zone. Areas not coming under either category will be in the tertiary zone.

The general tax rate fixed for an area in the primary zone is in the range of Rs.8 to Rs.20 a square metre (1 sq m = 10.76 sq ft) for residential buildings. Buildings in the secondary zones will get a 10 per cent concession on rates and those in the tertiary zone, 20 per cent.