Himachal Pradesh Property Tax
Himachal Pradesh Property Tax
Property tax is a levy imposed by the Government on a person’s real or personal property. The property is taxed based on the value assessed by the governing authority of the jurisdiction where the property is located. The types of properties taxed and the rates of property tax vary by jurisdiction. The money collected is used for various public services like constructing libraries, repairing roads, sanitation etc. It is important to pay the property tax on time to avail tax benefits and avoid legal hassles. In this article, we look at the various aspects of Himachal Pradesh property tax and the procedure to pay the same in detail.
The Himachal Pradesh Municipal Corporation (HPMC) Act, 1994
The Himachal Pradesh Municipal Corporation (HPMC) Act, 1994 includes the provisions for the assessment method and collection of lands and buildings for property tax in Chapter VIII. The properties liable for property tax and the tax rates are also incorporated.
Properties Liable for Himachal Pradesh Property Tax
Property tax is applicable on all types of residential buildings, commercial buildings and appurtenant land. The Himachal Pradesh Municipal Corporation (HPMC) la. The kinds of buildings on which the property tax is levied are as follows.
- Residential / let out residential
- Non-residential / Commercial
- Factory building
- Office building
- Hotels / Bars
- Godowns
- Plot of Land
Responsible Persons
- Owner or joint owners
- The lessor – if the land or building is let for lease
- The superior lessor – if the land or building is sub-let
- If the property is not let out, the person who has the right to let is responsible to pay the tax.
Properties Exempted from Tax
- Agricultural land and building other than the residing house.
- Vacant land and building occupied exclusively for public worship, for charity purposes with the approval of corporation, for public burial or as cremation ground. Heritage land or buildings that are considered as above-mentioned premises are also notified for tax exemption.
- Vacant land or building owned by the corporation but not leased out or rented out.
- One personal residential property owned by the employees or officers who are martyred in an encounter while on duty in police, C.I.S.F and Paramilitary forces is exempted from tax provided that they are residents of Delhi.
- One personal residential property owned by the employees or the officers of Municipal Corporation of Delhi who are completely handicapped during duty hours is tax-exempted.
- One residential property owned by the award winning Delhi resident in the international games like Olympics, Asian Games, Commonwealth Games.
- One residential property owned by the following are also exempted from property tax.
- War widows, gallantry award winners in Police, Defense Forces, and Paramilitary Forces
- Civilians who have received highest order of bravery awards from the Government.
- Armed force personnel who have sustained disability between 76 to 100 percent in a war or war like operations.
Himachal Pradesh Property Tax Assessment Method
Under the provisions of the Act, the assessment of the lands and buildings are based on the Annual Rent Value.
Property tax = Annual rent value * Rate of tax
Annual Value = Location Factor*Structural Factor*Age Factor*Occupancy Factor*Use Factor
Location factor:
Number of zones: – The entire old and merged Municipal area has been divided as A and B zones. The Location factor at 5 is same for both the Zones.
Structural factor:
- For Pucca-building, value per Sq.m. = 3.00
- For semi-pucca building, value per sq.m = 2.00
- For kutcha building, value per sq.m = 1.00
Age factor of the Buildings:
| Group Factor | value | |
| A | Before1947 | 1.50 |
| B | 1947 to 1980 | 3.00 |
| C | 1981 to 2000 | 4.00 |
| D | 2001 and beyond | 5.00 |
Occupancy factor:
- Value for residential occupancy:
| (a) Value for self residential | (b) Value for Let out residential |
| 2.00 | 2.50 |
2.Value per square meter for non-residential Occupancy:
| A | B | C | D | E |
| Hotel above built up area of 2000 sq.m., MNC Show Rooms and Restaurants | Hotel having built up area between 1000 to 2000 sq.m. and show room above 1000 sq. m. | Other Hotels, Bars, Restaurant, Banks, ATMs Show rooms, Call Centre, Marriage Hall,Travel Agency, Mobile Towers, Coaching centre. | Shops, Schools, Colleges, Education institutions, Offices, Hostel, Hospital, Theatre, Clubs, Paying Guest House (PGs), Guest House | Godowns, Dhaba, Stall and Other Types of Properties not covered Under (A to D) |
| 12 | 10 | 8 | 7 | 3 |
Use factor:
The value of Use factor of the units of the lands and buildings based on the purpose is as follows.
- Residential = 1.50/-
- Non. Residential = 2.50/-
Tax Rate
The tax rate depends on the usage i.e., residential or commercial or industrial and whether it is occupied by the owner or leased. Tax rate for the unit of lands and Buildings are as follows.
For Lands:
For Zone A the property tax charged on the net value is 15 %.
For Zone B the property tax charged on the net value is 10 %.
| A-zone | B-zone |
| 3% p.a. on the ratable value for self occupied residential properties that measure 1sq.mtr. to 100 sq.mtrs | 2% p.a. on the ratable value for self occupied residential properties that measure 1sq.mtr. to 100 sq.mtrs |
| 6% p.a. on the ratable value for self occupied residential properties that measure 101sq mtrs. and above | 4% p.a. on the ratable value for self occupied residential properties that measure 101sq mtrs. and above |
| 10% p.a. on the ratable value for non-residential properties | 5% p.a. on the ratable value for non-residential properties |
Online Payment of Property Tax
The taxpayer can pay the Himachal Pradesh property tax online by visiting the official website of Property Tax Management System under the Urban Development Department of Himachal Pradesh. The payee can make the payment as registered user or as new user without registration.
For Registered user:
Enter the form number, select the Municipal Corporation, Enter the owner name and mobile number. Then click Submit.
To pay without registration, enter the form number, select the Municipal Corporation and click submit.
Rebate
- A statutory rebate of 10% is allowed for annual repairs and maintenance charges.
- A rebate not exceeding 10% of the rent is allowed for a building that is let out with furniture.
- 10% rebate on the current year’s property taxes demand or on the property taxes demand raised for the first time is allowed if the assessee deposits the property taxes bill within 15 days from the date of its receipt.
Note: If tax bill is issued by post, the payment should be made within 18 days from the date of issuing the bill by post to avail the 10% rebate.
Penalty
In case of delayed payments i.e. the payments made after one month from the end of the financial year, an interest at 1 percent per month will be charged until the date of payment.
