GOVERNMENT OF KERALA Local Self Government (RD) Department NOTIFICATION G. O. (P) No. 18/2011/LSGD. Dated, Thiruvananthapuram, 14th January, 2011. S.R.O. No. 35/2011 In exercise of the powers conferred by sections 230, 231, 233 read with section 565 of the Kerala Municipality Act, 1994 (20 of 1994), the Government of Kerala hereby make the following rules, namely:--

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S.Rule 1 Short title and commencement.--

(1) These rules may be called the Kerala Municipality (Property Tax, Service Cess and Surcharge) Rules, 2011.

(2) They shall come into force at once to the new tax payers and from 1 st April, 2011 to the existing tax payers.

S.Rule 2 Definitions.--

(1) In these rules, unless the context otherwise requires,--

(a) 'Act' means the Kerala Municipality Act, 1994 (20 of 1994);

(b) ' Section' means a section in the Act;

(c) 'Form' means a form appended to these rules;

(d) 'Municipality' means a Town Panchayath or Municipal Council or Municipal Corporation constituted under sub-section (1) of section 4;

(e) ' Secretary' means the Secretary of a Municipality:

(f) 'Plinth area' means in the case of a single storied building, the area of its floor level (including thickness of wall) of the portion having roof and in the case of a multi-storied building with or without cellar-storey, the total area of such floor level (including thickness of wall but excluding the open terrace portion) of each storey of the building;

(e) 'Council' means the Council of the Municipality;

(g) 'Year' means the financial year and 'half year' means its equal half.

(2) Words and expressions used but

S.Rule 3 Property tax to be levied to each building.--

(1) The Secretary shall levy property tax as per section 233 and as per these rules for each building which has not been exempted from property tax as per section 235 of the Act .

(2) If more than one building is situated in the same property, if they are not constructed connecting each other, for the purpose of levying property tax they shall be treated as separate buildings:

Provided, latrine, firewood shed, cattle shed, cages for domestic animals or domestic birds, car shed, pump house situated in the same property as a building appurtenant there to or such other appurtenant building, even though separated from a building, shall not be treated as separate building and its plinth area shall not be included in the plinth area of the main building.

(3) If there is a car porch appurtenant to a building, its area shall not be included in the plinth area of the building and if there is a swimming pool, its area shall be included in the plinth area of the building.<

S.Rule 4 Fixing of rates of basic property tax.--

(1) The Municipality shall, by resolution, fix the rates of basic property tax in whole number to be levied in the area of the Municipality to a square meter of plinth area for each category of building, mentioned below in accordance with the use, if the Government have fixed their sub-categories, for it also, subject to the minimum and maximum limits of basic tax rates fixed by the Government as per sub-section (2) of section 233, for each category of building, namely:--

(i) used for residential purpose;

(ii) used for industrial purpose;

(iii) used for schools or hospitals;

(iv) used for amusement parks, mobile telephone tower ;

(v) used for commercial purpose;

(vi) used for other purposes;

(vii) Any other category of buildings as notified by the Government;

(2) The Council shall, initially consider preliminary proposals to fix rates of basic property tax or revision of existing rates and before passing a resolution for fixing

S.Rule 5 Assessment of basic property tax.--

(1) All buildings in the area of Municipality shall be classified in accordance with the use stated in sub-rule (1) of rule 4 in order to assess property tax.

Note 1:--Buildings for residential purposes includes houses, apartments, residential flats, hostels (except lodges) etc.

Note 2:-- Buildings for industrial purpose means buildings for production or processing any kind of products, objects or things or for collecting or operating machineries.

Note 3:-- Buildings for commercial purposes means buildings for selling, purchasing and gathering goods for sale and it includes restaurants and buildings constructed for commercial purpose appurtenant to the places of worship.

Note 4:--Buildings for other purposes includes offices, auditorium, kalyanamandapam, conference hall, workshop, service station, lodges etc; buildings related to any profession and which cannot be included in any other categories may be considered as buildings for other purposes.

(

S.¹[Rule 8 Classification on the basis of road facility.--

(1) Every Council, for the purpose of rule 6, shall classify the roads and pathway within the area of Municipality or passing through the area of Municipality as roads having width of five meters or more, roads/ pathway having width of less than five meters and more than one and half meter, pathway having width of one and half meter or less, the secretary shall publish that matter in the notice board of the office of the Municipality for the information of the public.

(2) The Council shall as per sub rule (1), refix the classification on the basis of road facility from time to time:

Provided, the period in which the assessment of property tax is in force, the Village Panchayat shall not refix the classification of road facility making it applicable for that period.]

S.Rule 9 Criteria for assessment of the annual property tax of the building.--

(1) After the basic property tax of a building is reckoned as per sub-rule (2) of rule (5), on the basis of factors such as zone in which the building is located, availability of road facility to the building, ¹[x x x x] of the building, construction of roof, age, construction of floor, ²[x x x x] air-conditioning facility and ³[x x x x], deductions and additions in the basic property tax shall be effected in accordance with the criteria and in percentage stated in the Schedules under rule 6 and the annual property tax of the building shall be assessed by adjusting the amount so arrived after making deductions and additions as such rounded to the next higher whole number:

Provided, the aggregate deduction so allowed in respect of all items shall not exceed seventy five percentage of the basic property tax as provided in sub-section (7) of section 233.

(2) In case of a building, where two or more uses or two or more factors to be made as

S.Rule 10 Publication of public notice as to assessment of property tax.--

(1) After fixing and publishing rates of the basic property tax, classification of zones and classification of roads applicable to the area of Municipality , as provided in rules 4, 7 and 8 respectively by the Council, as per sub-section (10) of section 233, the secretary shall publish a public notice containing the details helpful to the owners of building to assess the basic property tax and annual property tax of the building by themselves.

(2) In public notice, the secretary shall demand all owners of the building to submit a tax return containing all particulars as to the building before the Secretary or the officer authorised by the Secretary within ¹[thirty] days of the publication of notice. The Secretary shall give necessary publicity to the public notice and its summary shall be published at least in two newspapers having circulation in the area of Municipality.

(3) The public notice published by the Secretary shall be in Form-1 appended to these r

S.Rule 11 Property tax return and its inspection.--

(1) The owner of each building shall within the time limit required in the notice published by the secretary as per sub-rule (2) of rule (10), submit before the secretary, or the officer authorised by the Secretary, the property tax return containing all particulars with self attestation that they are true as to his building.

(2) The property tax return submitted by the owner of the building shall be in Form-2 appended to these rules. The model of form shall be published in the notice board of the Municipality and its copies shall be given to the owners of building free of cost by the Municipality. In the case of buildings exempted from property tax and buildings having plinth area below 30 square metres belonging to the persons below poverty line, the return shall be submitted in Form-2a.

¹[x x x x]

(4) The officer receiving property tax return submitted by the owner of the building shall give a numbered receipt of acknowledgment to the owner of the

S.Rule 12 Assessment of property tax and maintenance of tax assessment register.--

¹[(1) The property tax of a building shall be assessed,in the case of submission of property tax return as per sub-rule (1) of rule 11 by the owner of the building, as per sub rule (4) of rule 12 and in the case of non submission of return, as per sub rule (6) of rule 12 and subject to the provisions contained in rules 5, 6, and 9 and the particulars regarding the building and the particulars regarding the property tax assessment shall be recorded in the property tax assessment register appended to these rules in Form-4. This register shall be on the basis of the ward of the Municipality and building number shall be recorded in advance. The information of such assessment of the property tax shall be intimated to the owner of the building in Form-5 appended to these rules.]

²[x x x x]

³[(4) In the case, where the owner of the building has submitted property tax return, the officer authorized by the Secretary shall, within six months, col

S.Rule 13 Property tax demand register.--

After the property tax of a building has been assessed on the basis of the property tax return submitted by the owner of the building or on the basis of the particulars collected by site inspection and the particulars have been recorded in the property tax assessment register, the necessary particulars for realizing such tax shall be recorded in the property tax demand register in Form-8 appended to these rules.

S.Rule 14 Demand notice to be given to each tax payers.--

(1) After recording the particulars as to the assessment of property tax in the property tax assessment register as per rule 12 and in the property tax demand register as per rule 13, for levying such tax, to each owner of the building, the Secretary shall,--

(a) as to the building, an amount of annual property tax to be remitted in each year within five years and its half-yearly instalments;

(b) tax to be levied to which building, particulars of that building (name of the owner, building number and ward number);

(c) the last date to remit the instalments of the annual property tax of each year without fine;

(d) liability due to the lapse in remittance of tax, a demand notice showing these shall be given in Form-9 appended to these rules.

(2) In case the assessment of the property tax is only provisional, in the demand notice issued to the owner of the building, it shall be clarified that the assessment of tax recorded in it is provisional and it s

S.Rule 15 Procedure for remittance of property tax.--

(1) The annual property tax assessed to a building, shall be remitted in two equal half yearly instalments directly to the office of the Municipality or through the officer authorized by the Municipality. Such tax remitted for each half-year shall be entered in the account books of the Municipality and receipt shall be given to the remittance of tax:

Provided, there is no bar for one time payment of the annual property tax in the first half year itself.

(2) The installment of annual property tax of each half year shall be remitted on or before the last date of the said half year and if tax is not remitted within that date, fine as per sub-section (2) of section 538 shall be applicable from the next day onwards.

S.Rule 16 Appeal and Revision.--

¹[If the secretary has assessed the property tax of the building as per sub-rule (4) or sub-rule (6) of rule 12] and if the owner of the building has objection against such assessment of property tax, appeal may be preferred within thirty days of receipt of the demand notice of the secretary, in the case of a Town Panchayat or Municipal Council before the Standing Committee for finance and in the case of a Municipal Corporation, before Standing Committee for appeals on taxation.

(2) Along with the appeal submitted before the Standing Committee on the decision of the Secretary, the owner of the building shall remit the property tax (as assessed by the Secretary) till the end of the half-year to which appeal is preferred and proof as to it shall be produced along with the appeal petition. If the tax has not been remitted as such, the Standing Committee shall reject the said appeal.

(3) In the time limit stipulated for submitting appeal to the Standing Committe

S.Rule 17 After assessment of property tax, variations made in the plinth area, in the manner of usage and otherwise of the building.--

(1) After the assessment of the property tax of a building, in the plinth area of the building or in the use specified in rule 4 or, in the case of any factor specified in rule 6 or in the case of any kind of factor, variation caused by the owner of the building or occurred naturally, the owners of the building shall within thirty days inform the Secretary in writing and submit a revised property tax return along with it as per rule 11.

(2) If the owner of the building has not fulfilled his liability as per sub-rule (1), the Secretary may levy upon him a fine of rupees one thousand or addition in tax due to the revised assessment of property tax, whichever is higher.

(3) The Secretary shall reassess the annual property tax of the building on the basis of the change as per sub-rule (1) with effect from the beginning of each and every half year and modifications shall be effected in the property tax assessment register and the property tax demand register in accordance w

S.Rule 18 Realisation of property tax from the possessor.--

If the owner of the building liable to remit the property tax in whole or any part of that, commits default, the Secretary may require the person who possess such building temporarily or otherwise, to remit such tax within a specific period of not less than fifteen days. The possessor is liable to remit such amount and he can realize such amount remitted by him from the owner of the building.

S.Rule 19 Procedure to be taken for non-remittance of tax.--

On receipt of demand notice, if the owner of the building has not remitted the property tax to the Municipality within the time limit specified in the said notice, in order to realise the tax, the Secretary shall take legal proceedings such as attachment, prosecution, litigation.

S.Rule 20 Assessment of Property tax of buildings constructed unlawfully.--

(1) The Secretary shall give special building number to the buildings constructed unlawfully and enter the particulars as to them in the register in Form 10 annexed to these rules and maintain it.

(2) The building number to be given to the building constructed unlawfully shall not be in the usual manner of giving building number. For such building, number shall be given, forming building number indicating unlawful construction as "UA" and including the year in which the unauthorised construction was made after finding it out. The building number so given, was intended only for assessment of property tax as per Section 242 and the Municipality or the owner of the building shall not use such building number for any other purposes.

(3) For the buildings constructed unlawfully, property tax shall be assessed in the manner and rate fixed for them as per Section 242 and demand notice requiring property tax shall be send to the owner of each building. It shall be recorded in

S.Rule 21 Deduction of tax to the vacant building.--

(1) If any building remain vacant continuously for a period of sixty days in a half year or more from the date on which the building remained vacant without using for any purpose mentioned in rule 4, the Secretary may after making necessary enquiry and being satisfied, allow deduction of the property tax for that half-year as per Section 239.

(2) (a) The owner of the building or his agent,--

(i) the building is vacant; or,

(ii) from which date onwards the building remained vacant if notice was not given to the Secretary, the Secretary shall not allow deduction of tax as per sub-rule (1).

(b) the period of every notice specified above as mentioned in clause (a) shall expire by that half year as to which half year it has been given and shall have no effect thereafter.

(3) Any deduction permissible under this rule shall be entered in the tax deduction register in Form-11 specified for this purpose.

S.Rule 22 Notice to be given by the transferor and transferee as to the transfer of building.--

(1) Whenever the person primarily liable for the payment of property tax to any building, when transferring the ownership of that building, such person and the transferee shall, where the document is to be given in writing or is to be registered, in the case of such registration or where the document is not to be given in writing, in the case of transferring ownership, shall give notice of such transfer to the Secretary within three months after such transfer as per sub-section (1) of Section 240.

(2) In the case of death of any person primarily liable for the payment of property tax, the person who receives ownership right over building by way of inheritance, or otherwise, such person shall give notice in writing to the secretary regarding the right so received within one year from the date of the death of the deceased as per sub-section (2) of Section 240.

(3) The transferee or the person who acquires ownership, as the case may be, shall be bound to produce before th

S.Rule 23 Application to effect changes in the property tax assessment register as to the ownership of the building and procedure to be taken on it by the Secretary.--

(1) In every case, the application for changing the ownership as to the building in the property tax register of the Municipality, the person or persons submitting application shall submit in writing and shall affix signature on it and shall produce the documents proving transfer or succession along with the application. The application may be furnished by post or direct or through an authorised person. While effecting changes in the property tax register upon any such application, the Secretary shall comply with the following conditions, namely:--

(a) (i) In all cases, where there is absolute transfer of ownership, where both the parties have submitted application for change in the register and one of the parties is the registered owner, the secretary shall examine the register and record the transfer expeditiously;

(ii) Where only one of the parties to the transfer makes the application, the Secretary shall issue notice to the other party. If the registered owner is

S.Rule 24 Obligation of the owner to give notice before construction, or re-construction or demolition of building.--

(1) Notwithstanding anything contained in rule 17, in the case of construction or re-construction of any building in the area of the Municipality in accordance with the Kerala Municipality Building Rules, 1999, the owner of the building shall within 15 days from the date on which the completion of building or reconstruction or person residing in the building or the building is used for any other purpose, whichever happens earlier, shall give notice regarding it to the Secretary and furnish property tax return as per rule 11 and he shall be liable to remit revised annual property tax from the beginning of that half year onwards:

Provided, if such date comes within the last two months of a half year, the owner is entitled to get deduction of annual property tax in revised rate as to that building to that half year.

(2) The Secretary may levy an amount not exceeding rupees five hundred as fine on a person committing default in giving notice as per sub-rule (1).

(3)

S.Rule 25 Deduction of tax in areas included or excluded in between a year.--

(1) Where any area is included within a Municipal area from the beginning or in between a year, the owner of every building in such area shall be liable to pay property tax regarding that building to the Municipality from the beginning of each and every half year and such property tax shall be given at such rate existed to that building before including such area in that Municipality and that will be in force till the property tax is reassessed as per sub-section (4) of Section 233 in that Municipality:

Provided, if the property tax of that building due to that half year or to the succeeding half years has been remitted to a Local Self Government Institution, the property tax as to that building need not be remitted to that Municipality till the end of such period.

(2) Where any area is excluded from an area of Municipality, the owner of every building in such area, shall not be liable to remit property tax as to that building to that Municipality from the succeeding h

S.Rule 26 Levy of service cess.--

(1) Service cess (in whole number) shall be levied in the rate fixed by the Council for providing new services as to sanitation, water supply, street lights and drainage to the land where the building situated or in the nearby area from the owner of any building situated in the Municipality area and not exempted from service cess as per section 235 of the Act:

Provided, the service cess levied as such shall not be less than the rate specified in rule 27.

(2) The Council may, exempt a building situated in that area from service cess, for the reason that, a service specified in sub-rule (1) has not been provided, in any area.

S.Rule 27 Rates of service cess.--

The service cess to be levied as per rule 26 shall not be less than the following rates, namely:--

(a) Sanitation (expenditure for general sanitation of Four percentage of property tax each area and removal and treatment of solid - of the building waste such as rubbish, carcasses of birds and animals and excreta)

(b) Water supply (expenditure of water supply - Three percentage of property system including taps in street) tax of the building.

(c) Street lights (expenditure for - Two percentage of property tax installation and maintenance) of the building

(d) Drainage (expenditure including sewage system) - One percentage of property tax of the building.

S.Rule 28 Procedure for collecting service cess.--

(1) The procedure as per these rule for assessment, levy and collection of property tax shall be applicable with necessary amendments for the assessment, levy and collection of service cess also.

(2) The service cess levied for each year shall be collected in two half year installments along with the property tax.

S.Rule 29 Fees to be realised for arranging special amenities.--

If the municipality specially and extensively arranged such a service to any building in addition to the services generally engaged by the Municipality and as mentioned in sub-rule 1 of rule 26, fee may be realized from the owner of the building at the rate fixed by the Council in proportion to the expenditure for that and that shall not be included in the service cess fixed under these rules.

S.Rule 30 Service charge to be realized in case of buildings owned by the Central Government.--

(1) In the case of buildings owned by the Central Government and exempted from the taxes including property tax as per Article 285 of the Constitution, the Municipality may realise service charge for the services such as sanitation, water supply, street lights, drainage at the rate specified in sub rule (2) and in accordance with the guidelines issued for this by the Government.

(2) The service charge to be realised as per sub-rule (1) shall be seventy five percentage of the property tax that may be reckoned as per these rules in the case of services provided completely and fifty percentage of the property tax in the case of services provided partially and thirty three and one-third percentage of the property tax in the case of no services are specially provided.

S.FORM II

Year ..................... 1[Form 2 [See rule 11(2)] ........................................................... Municipality/Corporation Number ......................................... Date: .................................................... Property tax assessment return submitted by the owner of the building (Before filling up, read the guidelines along with the Form.)

 

1.	Ward Number	Present	Old
2.	N

S.FORM IIA

Form 2a [See Rule 11(2)] ..............................................Municipality/Corporation Property Tax Return (Applicable only to residential buildings for own residence and having plinth area less in 30 Sq metres of those who are below poverty line and exempted from property tax)
1.Ward Number, Name and Building Number:
2.Old/Present ward Number and Building Number : .................................... 3. Name and address of the owner of the building:
Name
House name
Name of the Place
Pose Office ( S.FORM III Form 3 [See Rule 11(4)] ............................................... Municipality/Corporation Property Tax Return Register Ward No. (New)...................... Period of Assessment of Tax 20..... 20......... Ward No. (Old)............................. Sl. No. Building No. (Should be mentioned in advance) Name of the owner of building Address Date of receipt of return Whether the return received within the time limit Tax as per the return (in rupees) Whether eligible for exemption Remarks Signature of Se S.FORM IV 1[Form 4 [See Rule 12(1)] .......................................Municipality/Corporation Property Tax Assessment Register, 20 - 20 Ward No..................... Sl. No Old/Present Building No and Ward No. Survey No. and Village New building No. and details of building Name and address of the owner of the building (with telephone no.) If exempted from tax reason for it (provision in the Act/Government order) Name and address of the occupier/possessor/tenant (with telephone No.) Plinth area of building (in Sq.meter) Nature of use of the building Zone where the building is situated (1) (2) (3) (4) ( S.FORM V Year ....................... 1[Form 5 [See Rule 12 (1)] .......................................................................................... Municipality/Corporation Number………………….. Date:……................................. NOTICE Intimated to Shri/Smt ………………………………………………………. as per rule 12 (1) in the S.FORM VI 1[Form 6 [See rule 12, sub-rules (4) and (6)] .................................................Municipality/Corporation Property tax Assessment - Data Collection 1. Ward Number Present Previous (1) (2) 2. Name of the Ward 1[Form 7 [See rule (12) 6]   .............................................................................. Municipality/Corporation No …………………… Date: ......................................     NOTICE Intimated to Shri./Smt ………………………………… as per rule 12 (6) of the Kerala Municipality (Property tax, Service cess and Surcharge) Rules, 201 S.FORM VIII Form 8 [See Rule 13] .................................................Municipality/Corporation 20........20............ 20...........20..............Property tax Demand Register Ward No ..................... Serial No./Demand No. Building No. Name and address of owner Assessed annual tax and cess etc. Number and Date of demand notice First year (20......20......) Collection of Tax Property tax (Rupees) S.FORM IX   Form 9 [See Rule 14(1)] .........................................Municipality/Corporation Demand Notice No................../20............... Date:...................... Notice requiring remittance of property tax as per rule 14(1) of the Kerala Municipality (Property Tax, Service cess and Surcharge) Rules, 2011. Name of Owner of the Building........................... Ward No:............................. Building No:........................... Period for which tax was levied Demand No. Annual Property Tax (Rupees) Library subscription (Rupees) S.FORM X Form 10 [See Rule 20(1)] ..............................................................Municipality/Corporation Property tax assessment register of buildings constructed unlawfully Ward No:........................................................... Serial No. Name of the Owner of Building Address Survey No. and Village Nature of violation of law (Municipality Act/Building construction Rules/Coastal Regulation Act/others (clarify) Date of completion of construction of building/Date of beginning of use Special Number assigned to the building Zone in which building is situated Type of Ro S.FORM XI Form 11 [See Rule 21 (3)] ..............................................................................................Municipality/Corporation Property tax deduction register for vacant buildings Serial No. File No. Building No. and Ward No. Name of the Owner Annual Property tax (Rupees) Date of receipt of notice for deduction of tax Period and days during which the building remain vacant Days for which deduction of tax is allowed Deduction of tax allowed (Maximum of half year tax) (Rupees) Signature of Secretary Remarks (Description S.Rule 31 Surcharge on the property tax.-- (1) A Municipality may, for a specified period realise a surcharge from its whole area or from a specific area of it, not exceeding fifty percentage as per sub-section (2) of Section 230 on the property tax levied as per Section 233, after the Council has decided through a resolution to levy surcharge to make up any extra ordinary expenditure spent by it for any scheme or project or plan; Provided, more than two surcharges in this manner shall not be levied on property tax at the same time. (2) Any surcharge levied as per sub-rule (1) shall be collected by giving notice in the same manner as that of the property tax levied as per Section 233. Legal Comments Introduction - The Kerala Municipality (Property Tax, Service Cess and Surcharge) Rules, 2011 establish a comprehensive framework for the fixation, assessment, classification, notification, returns, and demand of property tax (including service cess and surcharge) within municipal limits; the Rules are framed under Sections 230, 231, 233 read with Section 565 of the Kerala Municipality Act, 1994, and are meant to function as a complete code for property tax regime at the local level. - [Rosamma Thomas, W/o. K.T. Thomas vs Kottayam Municipality, Rep. By Secretary] What Section Says - Section 233(2) authorizes the Government to fix minimum and maximum rates of basic property tax per square metre plinth area for different building categories; Section 233(3) requires the Council to fix rates within those limits; Section 233(4) prescribes a five-year horizon with potential upward adjustments (historically 25%) at the end of each five-year period; government rules under 233(19) empower the Government to frame procedure/regulatory details for the tax regime. - [K. P. Muhammed Ashraf, S/o. Muhammed Kunhi Haji VS Taliparamba Municipality Represented By The Secretary] Essential ingredients - The Rules create a structured process: (i) Rule 3: Secretary to levy tax per Section 233; (ii) Rule 4: preliminary and final fixation of basic tax rates within government limits; (iii) Rule 5–7: classification of buildings, deduction/addition scheme, and zoning; (iv) Rule 9: computation of annual property tax after adjustments; (v) Rule 10: publication and public notice; (vi) Rule 11–13: tax return, assessment register, and demand register; (vii) Rule 16: appeal/revision; (viii) Form-1/Form-2 and Form-9 for notices/returns; (ix) procedural publication requirements and timeframes. - [K. P. Muhammed Ashraf, S/o. Muhammed Kunhi Haji VS Taliparamba Municipality Represented By The Secretary], [Rosamma Thomas, W/o. K.T. Thomas vs Kottayam Municipality, Rep. By Secretary] Scope of Section - The Rules apply to all buildings within the municipal area (subject to exemptions in Section 235) and provide procedures to assess, revise, and collect property tax, including transitional provisions for zones and classification; amendments to Section 233 (notably 2012–2015) have shaped the current scope and the operation of Rule 9A–9D. - [K. P. Muhammed Ashraf, S/o. Muhammed Kunhi Haji VS Taliparamba Municipality Represented By The Secretary], [Rosamma Thomas, W/o. K.T. Thomas vs Kottayam Municipality, Rep. By Secretary], [K. P. Muhammed Ashraf, S/o. Muhammed Kunhi Haji VS Taliparamba Municipality Represented By The Secretary] (context on amendments) Mandatory procedural requirements - The regime requires strict procedural compliance before demand notices are issued; failure to follow prescribed procedures (publication, Form-9, notice, and self-assessment/return processes) can render demand notices invalid and require reissuance or re-assessment. - [K. M. Subaidabi, W/o. Late Bavakunju VS State of Kerala, Represented by Its Secretary, Local Self Government Department, Government Secretariat], [K. M. Subaidabi, W/o Late Bavakunju VS State Of Kerala], [Rosamma Thomas, W/o. K.T. Thomas vs Kottayam Municipality, Rep. By Secretary], [Perinthalmanna Municipality, Represented By Its Secretary vs Abdul Kareem] Demand notices and Form-9 - Demand notices issued in non-conforming forms (e.g., not in Form-9) or without proper assessment procedures are void; courts have directed reissuance of compliant notices within six months in many cases. - [Rosamma Thomas, W/o. K.T. Thomas vs Kottayam Municipality, Rep. By Secretary], [K. M. Subaidabi, W/o Late Bavakunju VS State Of Kerala], [Perinthalmanna Municipality, Represented By Its Secretary vs Abdul Kareem] Publication and notice requirements - Government/municipality must publish notices at key steps (initial proposals, final rates, and public notices) in newspapers and on notice boards, with a defined public comment window (typically at least 30 days). Non-compliance can vitiate the tax fixation or demand. - [K. P. Muhammed Ashraf, S/o. Muhammed Kunhi Haji VS Taliparamba Municipality Represented By The Secretary], [Rosamma Thomas, W/o. K.T. Thomas vs Kottayam Municipality, Rep. By Secretary], [Perinthalmanna Municipality, Represented By Its Secretary vs Abdul Kareem] Occupancy certificate and tax liability - Property tax on a building used for residential purposes should generally be levied from the date of occupancy certificate; pre-occupancy taxation can be improper unless permitted by law/government orders; courts have stressed occupancy-based triggers and related publishing/notice rules. - [M. Baijuaged, S/o. Late Damodaran Nair VS Secretary, Kozhikode Municipal Corporation], [M. Baijuaged, S/o. Late Damodaran Nair VS Secretary, Kozhikode Municipal Corporation], [Rosamma Thomas, W/o. K.T. Thomas vs Kottayam Municipality, Rep. By Secretary] Limitation for recovery of dues - Recovery of dues is subject to a three-year limitation period under Section 539; recovery notices issued beyond this window are typically quashed unless lawful extensions/interruptions apply. - [Excelsior English Medium Higher Secondary School, Illickal, Kottayam,, Managed By M/S Excelsior Estates (P) Ltd. , Illickal, Kottayam West P. O. -686 003 And Represented Herein By Its Director, Sri N. J. Mathew. VS Secretary, Kottayam Municipality, Kottayam], [Fathima W/o. P. Ummar Vs State Of Kerala] Retroactive/dated demands and six-month compliance window - Where demands were issued retroactively or outside the procedural framework, courts have directed redos within a six-month outer limit from judgment, and quashing of demands until proper procedures are satisfied. - [Perinthalmanna Municipality, Represented By Its Secretary vs Abdul Kareem], [K. M. Subaidabi, W/o Late Bavakunju VS State Of Kerala] Zone/classification and boundaries - Proper zoning and boundary delineation are essential to a valid assessment; tribunals have struck down notifications where zones/boundaries were not properly fixed or publicized. - [Vadakara Muncipality vs Municipal Nikuthi Dayaka Samithi], [Perinthalmanna Municipality, Represented By Its Secretary vs Abdul Kareem] Exemption provisions (235(b)) - Certain buildings (e.g., aided schools) may be exempt from property tax under Section 235(b); such exemptions have led to quashing of demand notices where applicable. - [Manager, Varam Upper Primary School VS Kannur Municipal Corporation] Recreational spaces in residential complexes - Areas like recreational blocks and caretaker’s rooms, when mandated as part of residential occupancy, should be taxed consistent with residential use (not as commercial), per statutory interpretation of building rules and Schedule provisions in KMBR/Rules; misclassification can lead to quashing of demands. - [Abad Builders Pvt. Ltd. VS Maradu Municipality], [Manager, Varam Upper Primary School VS Kannur Municipal Corporation] Ultra vires challenges and amendments to Section 233 - Judicial decisions have wrestled with whether Rules 9(4A) and 9(4C) (minimum 25% enhancement) lie within the ambit of Section 233; some judgments held them ultra vires in light of the original Section 233, while later judgments hinge on amendments and government notifications aligning the Rules with amended Section 233(19). - [K. P. Muhammed Ashraf, S/o. Muhammed Kunhi Haji VS Taliparamba Municipality Represented By The Secretary], [State Of Kerala VS K. P. Muhammed Ashraf, S/o. Muhammed Kunhi Haji] Complete code assertion for Rules 2011 - Many courts have described the Rules as a complete code for property tax assessment, covering notices, returns, assessment, and appeals, while simultaneously requiring strict compliance with every step; substantial compliance is recognized in some contexts but not as a blanket remedy for procedural gaps. - [Rosamma Thomas, W/o. K.T. Thomas vs Kottayam Municipality, Rep. By Secretary], [Rosamma Thomas, W/o. K.T. Thomas vs Kottayam Municipality, Rep. By Secretary] Tribunal/Appeal accessibility and standing - Appeals or revisions under Rule 16 are generally available to aggrieved building owners; associations or non-owners may be constrained by standing unless recognized by the Rules; some tribunals have held certain non-owner appellants incompetent under the scheme. - [Vadakara Muncipality vs Municipal Nikuthi Dayaka Samithi] Educational/industrial area exemptions and jurisdictional limits - Exemption paradigms (industrial area/township status, or government orders) and the extent to which local bodies can grant exemptions are fact-intensive and require clear statutory basis; mere notification as an industrial area does not automatically exempt property tax obligations. - [K. M. Subaidabi, W/o. Late Bavakunju VS State of Kerala, Represented by Its Secretary, Local Self Government Department, Government Secretariat], [K. M. Subaidabi, W/o. Late Bavakunju VS State of Kerala, Represented by Its Secretary, Local Self Government Department, Government Secretariat], [Abad Builders Pvt. Ltd. VS Maradu Municipality] Ultra vires and government orders convergence - The interplay between Section 233 amendments, GO orders (e.g., 2011–2019), and Rules 2011/2013/2015 has produced divergent judicial outcomes; the controlling point is whether the Rules operate within the amended statutory framework and government notifications. - [K. P. Muhammed Ashraf, S/o. Muhammed Kunhi Haji VS Taliparamba Municipality Represented By The Secretary], [State Of Kerala VS K. P. Muhammed Ashraf, S/o. Muhammed Kunhi Haji] Form-1/Form-2 and the self-assessment framework - Rule 10 requires Form-1 public notices; Form-2 is used for tax returns; extensive public and field-driven data collection (Form-6), with proper publication and notice, is required to justify assessments. - [Rosamma Thomas, W/o. K.T. Thomas vs Kottayam Municipality, Rep. By Secretary], [Perinthalmanna Municipality, Represented By Its Secretary vs Abdul Kareem] Government orders guiding implementation - Government Orders (e.g., GO 2011, GO 2013, GO 2019) have directed zones/classifications and revision timelines; while not themselves tax-imposers, they guide the procedural framework and dates from which revised rates may become effective. - [Vadakara Muncipality vs Municipal Nikuthi Dayaka Samithi], [Rosamma Thomas, W/o. K.T. Thomas vs Kottayam Municipality, Rep. By Secretary] Note: The above points synthesize the legal commentary drawn from the provided sources on Kerala Municipality (Property Tax, Service Cess and Surcharge) Rules, 2011, with emphasis on interpretation and application as reflected in the cited judgments. Where a point concerns a precise textual provision or a specific procedural form, the related source is cited in brackets. S.FORM I   1[Form 1 [See rule 10 (3)] ...................................................................................................... Municipality/Corporation Number ....................................... Date: .................................. Public Notice demanding submission of property tax return The basic property tax rate with effect from ……………... fixed by the council for each category of building for the purpose of conducting assessment/reassessment of property tax of buildings and details of classification of municipal area into zones and details of classification of roads in the municipal area has been publis Legal Comments "Form I" - Public notice format - Form I is the mandated public notice for property tax assessment, published by the Secretary, detailing the basic tax rate, zone classifications, and road classifications, to be provided in Form I as appended to the Rules. [Perinthalmanna Municipality, Represented By Its Secretary vs Abdul Kareem] "Form I content - notice content" - Form I requires declaring the basic property tax rate per category, zone and road classifications, and the date the rates come into force, to guide assessments. [Perinthalmanna Municipality, Represented By Its Secretary vs Abdul Kareem] "Publication channel - newspapers and notice boards" - Mandatory publication of the final rates and notice of assessment in two widely circulated newspapers and on the notice board of the Municipality, as prescribed by Rule 4 and Form I framework. [Fathima W/o. P. Ummar Vs State Of Kerala] "Notice of return filing - 30-day window" - The public notice issued under Rule 10 requires owners to submit a property tax return within 30 days of the notice, signaling a formal self-assessment timeline. [Fathima W/o. P. Ummar Vs State Of Kerala] "Form-9 vs Form-I distinction" - Demand notices must follow the prescribed form (Form-9) under the Rules; issuance of notices not conforming to Form-9 renders them invalid, underscoring strict form compliance. [Rosamma Thomas, W/o. K.T. Thomas vs Kottayam Municipality, Rep. By Secretary] "Strict vs substantial compliance" - Courts recognize strict adherence to prescribed forms (Form-9) is mandatory, though substantial compliance may be acceptable in certain procedural aspects; non-compliance can invalidate demands. [Rosamma Thomas, W/o. K.T. Thomas vs Kottayam Municipality, Rep. By Secretary] "Rule 9A/9C debate and ultra vires challenge" - Rules 9(4A) and 9(4C) prescribe a minimum 25% increase; older judgments split on their vires, with some decisions deeming them ultra vires while others uphold their validity under Section 233 and subsequent amendments. [K. P. Muhammed Ashraf, S/o. Muhammed Kunhi Haji VS Taliparamba Municipality Represented By The Secretary] [State Of Kerala VS K. P. Muhammed Ashraf, S/o. Muhammed Kunhi Haji] "Amendments and authority to fix rates" - The government may fix minimum/maximum basic property tax rates and, subject to those limits, councils fix rates; amendments (and the 25% uplift concept) derive from Section 233(19) and subsequent amendments, but their vires have been contested in case law. [K. P. Muhammed Ashraf, S/o. Muhammed Kunhi Haji VS Taliparamba Municipality Represented By The Secretary] [State Of Kerala VS K. P. Muhammed Ashraf, S/o. Muhammed Kunhi Haji] "Section 233(2)-(4) framework" - Section 233 contemplates government-fixed limits and council-driven fixation within those limits, with a five-year cycle and a mechanism for a 25% uplift after each cycle; the legality of this uplift depends on conforming to the enabling statute and proper procedure. [K. P. Muhammed Ashraf, S/o. Muhammed Kunhi Haji VS Taliparamba Municipality Represented By The Secretary] "Occupancy certificate and tax liability" - Property tax for residential-type buildings is generally linked to occupancy/occupation readiness; tax can be levied from the date of occupancy certificate, not before, where applicable, reflecting Rule 24 and related guidance. [M. Baijuaged, S/o. Late Damodaran Nair VS Secretary, Kozhikode Municipal Corporation] [M. Baijuaged, S/o. Late Damodaran Nair VS Secretary, Kozhikode Municipal Corporation] "Occupancy date - retrospective demands" - Indian courts have held that demands cannot be validly issued for periods prior to completion/occupancy in the absence of compliant notice and assessment procedures; post-occupancy assessments must follow Rule 10/Rule 4 procedures. [M. Baijuaged, S/o. Late Damodaran Nair VS Secretary, Kozhikode Municipal Corporation] [K. M. Subaidabi, W/o Late Bavakunju VS State Of Kerala] "Vacancy exemptions and exemptions under Section 235(b)" - Exemption from property tax can apply to certain buildings (e.g., aided schools) despite unauthorised construction, and such exemptions can render demand notices unsustainable if the building qualifies under the exemption. [Manager, Varam Upper Primary School VS Kannur Municipal Corporation] "Publication and notice defects leading to quashing" - Where mandatory publication steps (Rule 4/Rule 10/Form-1) are not satisfied, demand notices have been quashed and re-assessment directed, typically with a six-month outer limit to complete the compliant process. [K. M. Subaidabi, W/o Late Bavakunju VS State Of Kerala] [Perinthalmanna Municipality, Represented By Its Secretary vs Abdul Kareem] [Vadakara Muncipality vs Municipal Nikuthi Dayaka Samithi] "Zone/Boundary issues" - Zonal classifications and boundary demarcations must follow the rule framework; tribunals have struck down notifications with improper or unclear boundaries, necessitating reconsideration and re-notification in line with Form I rules. [Vadakara Muncipality vs Municipal Nikuthi Dayaka Samithi] [Perinthalmanna Municipality, Represented By Its Secretary vs Abdul Kareem] "Appeal/revision by aggrieved owner only" - Appeals under Rule 16 are available to aggrieved owners; associations or non-owners may face limitations on standing, reinforcing the need for proper locus to challenge assessments. [Vadakara Muncipality vs Municipal Nikuthi Dayaka Samithi] [Perinthalmanna Municipality, Represented By Its Secretary vs Abdul Kareem] " retrospective demands and limitation (Section 539)" - Recovery of dues is subject to a three-year limitation under Section 539, and government orders to extend collection (e.g., from 2016) must be evaluated against the statutory limitation framework; improper retroactive demands can be set aside. [Fathima W/o. P. Ummar Vs State Of Kerala] [01500057676] "Form-1 vs Form-2 (tax return submission)" - Form-1 public notice is complemented by Form-2 self-assessment returns; owners must submit Form-2 within the allotted window as part of the assessment process. [Perinthalmanna Municipality, Represented By Its Secretary vs Abdul Kareem] "Vacancy remission and occupancy timing" - In cases involving vacancy remission, the timing and publication of notices must still align with the Rules; otherwise, the remission or re-assessment process may be required to restart. [K. M. Subaidabi, W/o Late Bavakunju VS State Of Kerala] "Rule 4(2)/4(4) sequencing and due process" - The preliminary notice under Rule 4(2) and the final rates/publication under Rule 4(4) are prerequisites before Rule 10 public notices guide form-based returns, and failure to observe these steps can invalidate subsequent assessments. [Fathima W/o. P. Ummar Vs State Of Kerala] [K. P. Muhammed Ashraf, S/o. Muhammed Kunhi Haji VS Taliparamba Municipality Represented By The Secretary] " Tribunal and standing constraints on appeals" - The Tribunal’s jurisdiction and standing requirements (e.g., unregistered associations lacking standing) can affect the maintainability of appeals challenging property tax notifications. [Vadakara Muncipality vs Municipal Nikuthi Dayaka Samithi] S.Rule 6 Deductions and Additions to be made on Basic Property Tax.-- Classification of factors on the basis of which deductions and additions to be made in the basic property tax as per sub-section (7) of section 233 (i.e. the zone in which the building is located, availability of road facility to the building, 1[x x x x] of the building, construction of roof, age, construction of floor, 2[x x x x] air conditioning facility, 3[x x x x]) and the percentage of deduction or addition of basic property tax to be made in the case of each item shall be as shown in the following schedules 1 to 9 respectively, namely:-- Legal Comments "Introduction" - The Kerala Municipality (Property Tax, Service Cess and Surcharge) Rules, 2011 operate within the Kerala Municipalities Act framework to govern property taxation, including the computation framework that includes Rule 6 on deductions and additions; [K. M. Subaidabi, W/o. Late Bavakunju VS State of Kerala, Represented by Its Secretary, Local Self Government Department, Government Secretariat] [Perinthalmanna Municipality, Represented By Its Secretary vs Abdul Kareem] [Rosamma Thomas, W/o. K.T. Thomas vs Kottayam Municipality, Rep. By Secretary] "Rule 6 – Purpose" - Rule 6 provides the mechanism for deductions and additions to be made on the basic property tax, with the classification of factors and percentages set out in the schedules annexed to Rule 6; these deductions/additions are anchored in Section 233(7) of the Act; [K. M. Subaidabi, W/o. Late Bavakunju VS State of Kerala, Represented by Its Secretary, Local Self Government Department, Government Secretariat] "Essential ingredients" - Rule 6 relies on schedules that specify the items and the percentage adjustments (deductions/additions) to basic property tax for each factor (as per the schedules); the calculation proceeds after basic tax is determined under Rule 5/Rule 4 and is adjusted by these factors; [K. M. Subaidabi, W/o. Late Bavakunju VS State of Kerala, Represented by Its Secretary, Local Self Government Department, Government Secretariat] "Factors enumerated" - The Schedule under Rule 6 contemplates deductions/additions based on factors such as zone location, road facility, construction attributes, age of building, floor, air-conditioning facilities, and similar relevant characteristics; these factors determine how the basic tax is modified; [K. M. Subaidabi, W/o. Late Bavakunju VS State of Kerala, Represented by Its Secretary, Local Self Government Department, Government Secretariat] "Relationship to basic tax computation" - Rule 6 operates in concert with the statutory framework for basic property tax (Rule 4 rates) and the adjustment rules (Rule 9 for annual property tax) to yield the final annual property tax for a building; the percentages in Schedule under Rule 6 feed into Rule 9’s final computation; [K. M. Subaidabi, W/o. Late Bavakunju VS State of Kerala, Represented by Its Secretary, Local Self Government Department, Government Secretariat] "Scope of application" - Rule 6 applies to every building within the Municipality that is not exempt under Section 235; deduction/addition calculations are applied to the basic tax applicable to the building category and use, subject to the Government-fixed limits; [K. M. Subaidabi, W/o. Late Bavakunju VS State of Kerala, Represented by Its Secretary, Local Self Government Department, Government Secretariat] [K. P. Muhammed Ashraf, S/o. Muhammed Kunhi Haji VS Taliparamba Municipality Represented By The Secretary] "Public notice and transparency" - The operation of Rule 6 is part of a broader, transparent process that begins with Rule 4 notices, public notices under Rule 10, and owner returns under Rule 11; procedural compliance across these steps is essential for lawful assessment; failure to follow these steps can undermine Rule 6-based adjustments; [Rosamma Thomas, W/o. K.T. Thomas vs Kottayam Municipality, Rep. By Secretary] [K. M. Subaidabi, W/o. Late Bavakunju VS State of Kerala, Represented by Its Secretary, Local Self Government Department, Government Secretariat] [Perinthalmanna Municipality, Represented By Its Secretary vs Abdul Kareem] "Procedural interplay – Form and publication" - Courts require adherence to mandatory procedures (e.g., Rule 4(2), Rule 4(4), Rule 10 public notices) before implementing any assessment that uses Rule 6’s deductions/additions; non-compliance can render demands invalid and require redo of assessments; [Rosamma Thomas, W/o. K.T. Thomas vs Kottayam Municipality, Rep. By Secretary] [Perinthalmanna Municipality, Represented By Its Secretary vs Abdul Kareem] [K. M. Subaidabi, W/o. Late Bavakunju VS State of Kerala, Represented by Its Secretary, Local Self Government Department, Government Secretariat] "Judicial treatment – compliance focus" - In several judgments, the courts emphasize strict or substantial compliance with the procedural framework surrounding property tax assessment (which underpins Rule 6 calculations); non-compliance leads to quashing demands and remand for fresh computation under law; [Rosamma Thomas, W/o. K.T. Thomas vs Kottayam Municipality, Rep. By Secretary] [Perinthalmanna Municipality, Represented By Its Secretary vs Abdul Kareem] [Fathima W/o. P. Ummar Vs State Of Kerala] "Impact of non-compliance with Rule 4/Rule 10 on Rule 6" - When the preliminary or final rates, zone classifications, or public notices are not properly published as required, Rule 6’s deductions/additions cannot be correctly applied, leading to invalid demand notices; courts have directed redo of formalities within time limits; [Rosamma Thomas, W/o. K.T. Thomas vs Kottayam Municipality, Rep. By Secretary] [Perinthalmanna Municipality, Represented By Its Secretary vs Abdul Kareem] "Interplay with Section 233(2)–(7)" - Rule 6 operates within the scheme authorized by Section 233(2)-(7), where the Government fixes minimum/maximum basic tax rates and councils fix rates within those limits; Rule 6’s schedules operationalize the adjustments within that framework; [K. M. Subaidabi, W/o. Late Bavakunju VS State of Kerala, Represented by Its Secretary, Local Self Government Department, Government Secretariat] [K. P. Muhammed Ashraf, S/o. Muhammed Kunhi Haji VS Taliparamba Municipality Represented By The Secretary] "Schedule-based approach" - The schedules to Rule 6 set the percentages for deductions/additions tied to the enumerated factors; the exact percentages are to be read from the schedules, not ad hoc adjustments; this ensures uniformity across properties of the same category; [K. M. Subaidabi, W/o. Late Bavakunju VS State of Kerala, Represented by Its Secretary, Local Self Government Department, Government Secretariat] "Relation to five-year revision framework" - The Rule 4/Rule 9 framework and Rule 6 work within the five-year cycle of rate fixation and the Government’s direction to apply a 25% enhancement over five-year intervals; Rule 6’s factors function within that broader revision cycle; [K. M. Subaidabi, W/o. Late Bavakunju VS State of Kerala, Represented by Its Secretary, Local Self Government Department, Government Secretariat] [Perinthalmanna Municipality, Represented By Its Secretary vs Abdul Kareem] "Municipalities’ obligations under Rule 6" - The Municipality Secretary/Secretary’s assessment process must incorporate Rule 6’s adjustments only after correct identification of use category, zone, and other relevant factors; misapplication can invalidate the assessment; [K. M. Subaidabi, W/o. Late Bavakunju VS State of Kerala, Represented by Its Secretary, Local Self Government Department, Government Secretariat] "Exemption considerations" - Exemptions under Section 235 (e.g., aided schools) interact with Rule 3/Rule 6 by potentially removing certain buildings from taxation or modifying the levy base; courts have recognized exemptions in tandem with the overall rules framework; [Manager, Varam Upper Primary School VS Kannur Municipal Corporation] [K. M. Subaidabi, W/o. Late Bavakunju VS State of Kerala, Represented by Its Secretary, Local Self Government Department, Government Secretariat] "Case example – recreational/caretaker spaces" - While not a direct Rule 6 point, Kerala cases have held that certain spaces inside residential complexes (like recreational blocks) must be taxed according to residential use and not commercial tariffs; this reflects how factual categorization (use) affects the tax base on which Rule 6 adjustments can apply; [Abad Builders Pvt. Ltd. VS Maradu Municipality] [K. M. Subaidabi, W/o. Late Bavakunju VS State of Kerala, Represented by Its Secretary, Local Self Government Department, Government Secretariat] "Case example – occupancy and timing" - Courts have held that property tax can be levied only after occupancy/numbering and publication of rates, which interfaces with Rule 6’s adjustments since the base tax (before adjustments) must be properly fixed and notified; failures here affect Rule 6 calculations; [Rosamma Thomas, W/o. K.T. Thomas vs Kottayam Municipality, Rep. By Secretary] [M. Baijuaged, S/o. Late Damodaran Nair VS Secretary, Kozhikode Municipal Corporation] [K. M. Subaidabi, W/o. Late Bavakunju VS State of Kerala, Represented by Its Secretary, Local Self Government Department, Government Secretariat] "Practical takeaway for practitioners" - To ensure Rule 6 adjustments are enforceable, ensure proper adherence to the entire Rule 2011 process: classification of area, notification of rates, owner returns, and timely public notices; non-compliance undermines the validity of the entire assessment including Rule 6 adjustments; [Perinthalmanna Municipality, Represented By Its Secretary vs Abdul Kareem] [Rosamma Thomas, W/o. K.T. Thomas vs Kottayam Municipality, Rep. By Secretary] [K. M. Subaidabi, W/o. Late Bavakunju VS State of Kerala, Represented by Its Secretary, Local Self Government Department, Government Secretariat] "Overall jurisprudence – procedural primacy" - The dominant judicial theme is that Rule 6-based deductions/additions cannot救 be invoked in the absence of full compliance with the procedural framework established by Rules 2011 (Rules 4–12) and related sections; hence, courts repeatedly quash demand notices for procedural defects, even where Rule 6 is otherwise applicable; [Rosamma Thomas, W/o. K.T. Thomas vs Kottayam Municipality, Rep. By Secretary] [Perinthalmanna Municipality, Represented By Its Secretary vs Abdul Kareem] [K. M. Subaidabi, W/o. Late Bavakunju VS State of Kerala, Represented by Its Secretary, Local Self Government Department, Government Secretariat] "Bottom line" - Rule 6 provides the structural mechanism for adjusting basic property tax via schedules of deductions and additions; its lawful application hinges on rigorous procedural compliance and alignment with the Government-fixed limits and the statutory scheme; violations or improper classifications render demands invalid and require reassessment; [K. M. Subaidabi, W/o. Late Bavakunju VS State of Kerala, Represented by Its Secretary, Local Self Government Department, Government Secretariat] [Rosamma Thomas, W/o. K.T. Thomas vs Kottayam Municipality, Rep. By Secretary] [Perinthalmanna Municipality, Represented By Its Secretary vs Abdul Kareem] S.Rule 7 Classification of area of Municipality into zones.-- (1) The Council shall, for the purpose of rule 6, classify the entire area of Municipality as prime zones, secondary zones, tertiary zones and shall fix boundaries of each zones temporarily and shall publish notice inviting objections, suggestions and proposals of public as to the classification of zones as such and fixation of boundaries in accordance with the criterias stated in the 1st Schedule under the said rule. For no reason, primary, secondary zones shall be exempted. Note 1:-- Classification of zones may not be on the basis of wards of the Municipality Note 2:-- The area of a Municipality itself may be classified into more than one prime zones, more than one secondary zones and more than one tertiary zones. (2) The municipality shall examine the objections, suggestions and proposals received within thirty days of publication of notice as per sub-rule (1) and dispose of within fifteen days and the prime, secondary and tertiary zones shall be finally fixe Legal Comments- "Procedural compliance mandatory" - The Kerala Supreme Court/High Court cases consistently hold that property tax demands must follow mandatory procedural requirements under the Kerala Municipality Act 1994 and the Kerala Municipality (Property Tax, Service Cess and Surcharge) Rules, 2011; non-compliance can invalidate demand notices and require re-assessment [K. M. Subaidabi, W/o. Late Bavakunju VS State of Kerala, Represented by Its Secretary, Local Self Government Department, Government Secretariat - 2024 0 Supreme(Ker) 992] [K. M. Subaidabi, W/o Late Bavakunju VS State Of Kerala - 2024 0 Supreme(Ker) 205] [Perinthalmanna Municipality, Represented By Its Secretary vs Abdul Kareem - 2025 0 Supreme(Ker) 1863] [Vadakara Muncipality vs Municipal Nikuthi Dayaka Samithi - 2025 0 Supreme(Ker) 1795] [Rosamma Thomas, W/o. K.T. Thomas vs Kottayam Municipality, Rep. By Secretary - 2025 0 Supreme(Ker) 865]. "Ultra vires challenge to Rules 9(4A)/9(4C)" - Rules 9(4A) and 9(4C) prescribing a 25% minimum enhancement were challenged; initial judgment held them ultra vires, but the appellate court later held them valid as amended provisions under Section 233; ambiguity resolved in favor of government power to set minimum/maximum limits within amended Section 233 [K. P. Muhammed Ashraf, S/o. Muhammed Kunhi Haji VS Taliparamba Municipality Represented By The Secretary - 2022 0 Supreme(Ker) 34] [State Of Kerala VS K. P. Muhammed Ashraf, S/o. Muhammed Kunhi Haji - 2024 0 Supreme(Ker) 738]. "Section 233—scope and limits" - Section 233 governs fixation/enhancement of basic property tax within government-fixed minimum/maximum limits; amendments (including 2012-2014 updates) allow adjustments, including minimum increments, subject to the amended text; courts scrutinize whether Rules stay within Section 233’s limits [K. M. Subaidabi, W/o. Late Bavakunju VS State of Kerala, Represented by Its Secretary, Local Self Government Department, Government Secretariat - 2024 0 Supreme(Ker) 992] [K. P. Muhammed Ashraf, S/o. Muhammed Kunhi Haji VS Taliparamba Municipality Represented By The Secretary - 2022 0 Supreme(Ker) 34] [Gateway Hotels, M/s. Taj Kerala Hotels And Resorts Limited vs Kochi Municipal Corporation, Represented By The Secretary - 2025 0 Supreme(Ker) 857]. "Form and publication requirements for notices" - The Rules require strict publication and notice formalities (Form-1 public notice, Form-2 returns, Rule 4(2)/(4), Rule 10 public notices, etc.); failures to publish or circulate notices invalidate subsequent demands and may trigger fresh assessment under the Rules within a six-month outer limit in several judgments [Perinthalmanna Municipality, Represented By Its Secretary vs Abdul Kareem - 2025 0 Supreme(Ker) 1863] [Vadakara Muncipality vs Municipal Nikuthi Dayaka Samithi - 2025 0 Supreme(Ker) 1795] [Rosamma Thomas, W/o. K.T. Thomas vs Kottayam Municipality, Rep. By Secretary - 2025 0 Supreme(Ker) 865] [K. M. Subaidabi, W/o. Late Bavakunju VS State of Kerala, Represented by Its Secretary, Local Self Government Department, Government Secretariat - 2024 0 Supreme(Ker) 992]. "Six-month outer limit for compliance" - Where procedural failures are found, courts often grant an outer limit (commonly six months) for Municipalities to redo essential formalities and issue new, compliant demand notices (Rules 2011; Form-9 adequacy) [K. M. Subaidabi, W/o Late Bavakunju VS State Of Kerala - 2024 0 Supreme(Ker) 205] [K. M. Subaidabi, W/o. Late Bavakunju VS State of Kerala, Represented by Its Secretary, Local Self Government Department, Government Secretariat - 2024 0 Supreme(Ker) 992] [Perinthalmanna Municipality, Represented By Its Secretary vs Abdul Kareem - 2025 0 Supreme(Ker) 1863]. "Substantial vs strict compliance" - Jurisprudence recognizes that while strict adherence to prescribed forms is mandatory (especially Form-9 demands), some decisions tolerate substantial compliance in procedural aspects, provided material statutory requirements are met; nonetheless, where strict form is mandated, non-compliance invalidates demands [Rosamma Thomas, W/o. K.T. Thomas vs Kottayam Municipality, Rep. By Secretary - 2025 0 Supreme(Ker) 865]. "Occupation timing vs tax liability" - Courts have held property tax may be linked to occupancy/numbering where occupancy certificates are issued; pre-occupancy taxation is often set aside unless the Rules/Section 24/Rule 24 clarifies the effective date; occupancy-linked taxation is a recurring issue in multi-storey residential/commercial cases [M. Baijuaged, S/o. Late Damodaran Nair VS Secretary, Kozhikode Municipal Corporation - 2023 0 Supreme(Ker) 622] [01500056660]. "Occupancy certificate and pre-occupation taxation" - Where occupancy certificates are issued after construction, several decisions direct taxation from the date of occupancy, not earlier; this aligns with Rule 24 and occupancy-based assessments, though later amendments may adjust guidance [M. Baijuaged, S/o. Late Damodaran Nair VS Secretary, Kozhikode Municipal Corporation - 2023 0 Supreme(Ker) 622]. "Exemptions and reductions" - The Act provides for exemptions (e.g., Section 235(b) exemptions for certain buildings like aided schools) which can render demand notices unsustainable if applied to taxable properties that are exempt; courts quash such demands despite unauthorised construction if exemption applies [Manager, Varam Upper Primary School VS Kannur Municipal Corporation - 2024 0 Supreme(Ker) 1439]. "Surcharge validity and procedure" - For surcharges on property tax, courts in various jurisdictions require that surcharge demands follow proper procedures (e.g., Rule 9 of Schedule IV in some acts) and that public/owner notices precede increases; failure leads to invalid surcharge demands, though some tribunals treat surcharge as derivative of base tax within statutory limits [Municipal Council of Vizianagaram VS Shah Bibi Saheba - 1967 0 Supreme(AP) 64] [Vadakara Muncipality vs Municipal Nikuthi Dayaka Samithi - 2025 0 Supreme(Ker) 1795]. "Limitation and recovery periods" - Section 539 imposes a three-year limit on recovery of dues; demands issued beyond limitation are often quashed, though government orders extending timelines or enabling retrospective adjustments have been contested; strict adherence to limitation is consistently emphasized [01500057672] [Excelsior English Medium Higher Secondary School, Illickal, Kottayam,, Managed By M/S Excelsior Estates (P) Ltd. , Illickal, Kottayam West P. O. -686 003 And Represented Herein By Its Director, Sri N. J. Mathew. VS Secretary, Kottayam Municipality, Kottayam - 2021 0 Supreme(Ker) 355]. "Classification into zones and road-based adjustments" - Section 233(2)-(7) and Rule 7/Rule 4 require zone-based classification and road-based adjustments; tribunals have struck down zone classifications/road classifications when procedures or boundaries were not properly published or delineated, directing redetermination per Rules [Vadakara Muncipality vs Municipal Nikuthi Dayaka Samithi - 2025 0 Supreme(Ker) 1795] [Perinthalmanna Municipality, Represented By Its Secretary vs Abdul Kareem - 2025 0 Supreme(Ker) 1863]. "Maintenance of assessment registers and Form-6/Form-2 data" - The Rules require detailed record-keeping (assessment registers, Form-2 returns, Form-6 updates); failures to maintain or publish these records can render assessments invalid and require fresh assessment [Gateway Hotels, M/s. Taj Kerala Hotels And Resorts Limited vs Kochi Municipal Corporation, Represented By The Secretary - 2025 0 Supreme(Ker) 857] [Rosamma Thomas, W/o. K.T. Thomas vs Kottayam Municipality, Rep. By Secretary - 2025 0 Supreme(Ker) 865]. "Judicial approach to old vs new tax regimes" - Courts frequently examine whether newly introduced plinth-area-based taxation (post-amendment) can be applied retroactively; where retroactive application lacks procedural compliance, notices may be quashed and fresh computation required, with limited recovery of pre-amendment periods [K. M. Subaidabi, W/o. Late Bavakunju VS State of Kerala, Represented by Its Secretary, Local Self Government Department, Government Secretariat - 2024 0 Supreme(Ker) 992] [Perinthalmanna Municipality, Represented By Its Secretary vs Abdul Kareem - 2025 0 Supreme(Ker) 1863]. "Reassessment and remand orders" - In several cases, courts quash challenged demand notices and remand for fresh determination in compliance with statutory procedures; this principle reinforces procedural primacy in tax administration [Kochuthresia Antony VS Angamaly Municipality - 1998 0 Supreme(Ker) 311] [Perinthalmanna Municipality, Represented By Its Secretary vs Abdul Kareem - 2025 0 Supreme(Ker) 1863]. "Authority to levy and increase tax rates" - Municipalities have the power to increase tax rates within the statutory limits, and courts have upheld rate increases when done within the amended framework; however, objections often focus on how such increases are implemented (public notice, effective dates, and compliance) rather than the principle of authority itself [Vigilance Council VS Thiruvalla Municipality - 1997 0 Supreme(Ker) 119]. "Tangible relief for taxpayers" - Common remedies include quashing improper demand notices, directing redress via compliant assessment, granting credit for taxes already paid, and ordering fresh notices within six months; in some cases, refunds/adjustments for excess taxes are ordered where due under the rule of law [Perinthalmanna Municipality, Represented By Its Secretary vs Abdul Kareem - 2025 0 Supreme(Ker) 1863] [K. M. Subaidabi, W/o. Late Bavakunju VS State of Kerala, Represented by Its Secretary, Local Self Government Department, Government Secretariat - 2024 0 Supreme(Ker) 992]. "Relation to other statutes and circulars" - While Kerala decisions focus on the Kerala Act/Rules, some judgments reference constitutional articles (Article 265) and circulars (Govt orders) to guide interpretation of when and how tax changes may be implemented; the interplay between statutory text and executive orders is carefully navigated [State Of Kerala VS K. P. Muhammed Ashraf, S/o. Muhammed Kunhi Haji - 2024 0 Supreme(Ker) 738] [K. P. Muhammed Ashraf, S/o. Muhammed Kunhi Haji VS Taliparamba Municipality Represented By The Secretary - 2022 0 Supreme(Ker) 34]. "Remedial framework for challenged assessments" - The jurisprudence consistently offers a path: quash non-compliant demand notices, remand for compliance with Rules (including public notices and Form-9), and allow fresh computation, preserving taxpayer rights while ensuring lawful collection going forward [K. M. Subaidabi, W/o Late Bavakunju VS State Of Kerala - 2024 0 Supreme(Ker) 205] [Perinthalmanna Municipality, Represented By Its Secretary vs Abdul Kareem - 2025 0 Supreme(Ker) 1863] [Rosamma Thomas, W/o. K.T. Thomas vs Kottayam Municipality, Rep. By Secretary - 2025 0 Supreme(Ker) 865]. "Cross-jurisdictional notes" - While the primary Rules are Kerala-specific, related Indian cases across provinces (AP, Tamil Nadu, Madras District Municipalities Act, etc.) illustrate that procedural due process in municipal taxation is a common constitutional and statutory concern; the Kerala jurisprudence aligns with broader Indian tax-administration principles on notice, limitation, and legal authority [Municipal Council of Vizianagaram VS Shah Bibi Saheba - 1967 0 Supreme(AP) 64] [K. B. Madhavan, S/o. K. G. Balakrishnan VS Sub Registrar, office of the Sub Registrar - 2010 0 Supreme(Ker) 272]. Read more document