(Updated in 2023) (As amended by K. G. Ext. No. 487 dt. 09/02/2023 - Amendments in Rules 4(5), 6, 8, 9, 10, 12, 16, Forms 1, 2, 4, 5, 6 and 7) GOVERNMENT OF KERALA Local Self Government (RD) Department NOTIFICATION No. RD1/46/2020/LSGD. Dated, Thiruvananthapuram, 1st July, 2022. In pursuance of clause (3) of Article 348 of the Constitution of India, the Governor of Kerala is pleased to authorize the publication in Gazette of the following translation in English Language of G. O. (P) No. 20/2011/LSGD. dated 14-1-2011 which was published as S.R.O. No. 37/2011 in the Kerala Gazette Extraordinary No. 82 dated 14-1-2011. By order of the Governor, Sarada Muraleedharan, Additional Chief Secretary to Government. GOVERNMENT OF KERALA Local Self Government (RD) Department NOTIFICATION G. O. (P) No. 20/2011/LSGD. Dated, Thiruvananthapuram, 14th January, 2011. S.R.O. No. 37/2011.--In exercise of the powers conferred by sections 200, 203, and 208 of the Kerala Panchayat Raj Act, 1994 (13 of 1994)

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S.Rule 1 Short title and commencement.--

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

(2) They shall come into force at once to the new tax payers and from 1st 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 Panchayat Raj Act, 1994 (13 of 1994);

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

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

(d) 'Village Panchayat' means a Village Panchayat constituted under sub-section (1) of section 4;

(e) 'Secretary' means the Secretary of a Village Panchayat;

(f) 'Plinth area' means in the case of a single storeyed 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;

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

(2) Words and expressions used, but not defined in these rules but defined in the Kerala Panchayat Raj Act,1994 (Act 13 of 1994)

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

(1) The Secretary shall levy property tax as per section 203 and as per these rules for each building which has not been exempted from property tax as per section 207 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 Village Panchayat shall by resolution, fix the rates of basic property tax in whole number to be levied in the area of the Village Panchayat to a square metre of plinth area for each category of building mentioned below in accordance with the use, and if the Government have fixed their sub-categories, for it also, subject to the minimum and maximum limits of basic property tax fixed by the Government as per sub-section (2) of Section 203, for each category of building, namely:--

(i) used for residential purpose;

(ii) used for industrial purpose;

(iii) used for schools and 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 Village Panchayat shall, initially consider preliminary proposals to fix rates of basic property tax or revision of existing rates and before passin

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

(1) All buildings in the area of Village Panchayat 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.Rule 7 Classification of area of Village Panchayat into zones.--

(1) Each Village Panchayat shall, for the purpose of rule 6, classify the entire area of Village Panchayat 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. Prior sanction from Government shall be obtained by submitting application with factual reason for exemption of prime zones and in any cause, secondary Zones shall not be exempted.

Note 1:-- Classification of zones may not be on the basis of wards of the Village Panchayat.

Note 2:-- The area of a Village Panchayat itself may be classified into more than one prime zones, more than one secondary zones and more than one tertiary zones.

(2) The Village Panchayat shall examine the objections, suggestions and proposals received within thi

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

(1) Every Village Panchayat, for the purpose of rule 6, shall classify the roads and pathway within the area of Village Panchayat or passing through the area of Village Panchayat 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 Village Panchayat for the information of the public.

(2) The Village Panchayat 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 criterias 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 203.

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

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 Village Panchayat as provided in rules 4, 7 and 8 respectively by the Village Panchayat, as per sub-section (10) of Section 203, 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 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 Village Panchayat.

(3) The public notice published by the Secretary shall be in Form-I appen

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 Village Panchayat and its copies shall be given to the owners of building free of cost by the Village Panchayat. 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 own

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 subrule (4) of rule 12, 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 assessement register appended to these rules in Form-4. This register shall be on the basis of the ward of the Village Panchayat 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 authorised by the Secretary shall, within six months,

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 a

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 Village Panchayat or through the officer authorized by the Village Panchayat. Such tax remitted for each half-year shall be entered in the account books of the Village Panchayat and receipt shall be given for 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 instalment of annual property tax of each half year shall be remitted on or before the last day of the said half year and if tax is not remitted within that date, fine as per section 209E shall be applicable from the next day onwards.

S.Rule 16 Appeal and Revision.--

(1) 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 by the owner of the building or by the person authorized by him in writing before the Standing Committee for finance which deals with tax appeals of the Village Panchayat.

(2) Along with the appeal submitted before the Standing Committee for finance 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 for finance shall reject the said appeal.

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

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 manner of usage specified in rule 4 or, in the case of any factor specified in rule 6 or in the case of any kind of factor, any variation caused by the owner of the building or occurred naturally, the owner 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

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 Village Panchayat within the time-limit specified in the said notice, for realising that the Secretary shall take legal proceedings such as attachment, prosecution, litigation as provided in Section 210 and in the Kerala Panchayat Raj (Taxation, Levy and Appeal) Rules, 1996.

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 235AA and the Village Panchayat 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 sub-section (1) of Section 235AA and demand notice requiring property tax shall be send to the owner of each buildi

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 without using for any purpose mentioned in rule 4, the Secretary may allow deduction of an amount not exceeding half of the annual tax in proportion to the number of days it remained vacant.

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

(i) that building was remaining vacant; or

(ii) from which date onwards that building remain 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 to be reckoned for deduction of tax as per sub-rule (1), shall be the date on which notice was given for that purpose or the date from which the building remain vacant, whichever comes later, that date shall be taken into account.

(c) the period of every notice as mentioned in clause (a) shall expire with the half year, to which half year it has been given and shall have no effect thereaf

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.

(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 death of the deceased.

(3) The transferee or the person who acquires ownership, as the case may be, shall be bound to produce before the Secretary any document proving the transfer or succession.

(4) Every pe

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 Village Panchayat, 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 own

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 a Village Panchayat area, in the case of construction or reconstruction of any building, as provided in the building construction rules applicable to Village Panchayats, the owner of the building shall within fifteen days from that date on which the completion of building or re-construction or person resides in the building or 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 the 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 shall have the right 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

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

(1) Where any area is included within a Village Panchayat 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 that Village Panchayat from the beginning of each and every half year and such property tax shall be given at the such rate existed to that building before including such area in that Village Panchayat and that will be in force till the property tax is reassessed in the Village Panchayat as per sub-section (4) of Section 203:

Provided, if the property tax of that building for that half year or the succeeding half years has been given to a Local Self Government Institution, the property tax as to that building shall not be liable to be given to that Village Panchayat till the end of such period.

(2) Where any area is excluded from a Village Panchayat, the owner of every building in such area, is not be liable to give property tax of that building to that Village Pan

S.Rule 26 Levy of service cess.--

(1) Service cess (in whole number) shall be levied at the rate fixed by the Village Panchayat, if services such as sanitation, water supply, street lights and drainage in the land where the said building is situated or in the nearby area from the owner of any building situated in a Village Panchayat area are provided and not exempted from service cess as per sub section (1) of section 207 of the Act;

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

(2) The Village Panchayat 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 each area and removal and treatment of solid waste such as rubbish, carcasses of birds and animals and excreta)	-	Four percentage of property tax of the building
(b)	Water supply (expenditure of water supply system including taps in street)	-	Three percentage of property tax of the building
(c)	Street lights (expenditure for installation and maintenance)	-	Two 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 to be 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 Village Panchayat specially and extensively arranged such a service to any building in addition to the services generally arranged by the Village Panchayat 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 Village Panchayat 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 the case of buildings owned by the Central Government.-- (1) In the case of buildings owned by the Central Government and exempted from taxes including property tax as per Article 285 of the Constitution, the Village Panchayat 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.Rule 31 Surcharge on the property tax.-- (1) A Village Panchayat may, for a specified period, realise a surcharge from a Village Panchayat area or from a specific area of it, not exceeding fifty percentage as per Section 208 on the property tax levied as per Section 203, after the Village Panchayat 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 203. S.Rule 32 Application of provisions in other rules.-- (1) The provisions of the Kerala Panchayat Raj (Taxation, Levy and Appeal) Rules, 1996 shall be applicable to the matters other than those provided in these rules as to assessment of property tax, realisation of property tax, appeal against assessment of property tax. S.1 1[Form 1 [See Rule 10(3)] ............................................. Village Panchayat Number................................. Date: ............................ Public Notice demanding submission of property tax return The basic property tax rate with effect from..................................... fixed by the Village Panchayat for each catergory of building for the purpose of conducting assessment/reassessment of property tax of buildings and details of classification of area of Village panchayat into zones and details of classification of roads in the area of Village panchayat has been published by the Village Panchayat in dates................................ S.2 1[FORM 2 [See Rule 11(2)] ..................................................Village Panchayat Property tax assessment return submitted by the owner of the building 1. Ward Number Present Old 2. Name of the Ward 3. Building Number 4. Details of the last remitted tax. To which year S.3 FORM 2a [See rule 11(2)] .............................Village Panhcayat Property Tax Return (Applicable only to residential buildings for own residence and having plinth area less than 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 th S.4 FORM 3 [See Rule 11(4)] ..............................Village Panchayat Property Tax Assessment Return Register Ward No. (New)....................... Ward No. (Old)....................... Period of Assessment of Tax 20......20...... < Sl. No. Building No. (Should be mentioned in advance) Name of the owner of building Address Date of receipt of return S.5 1[FORM 4 [See Rule 12(1)] ...............................................Village Panchayat Property Tax Assessment Register, 20..... 20..... - 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 building (With telephone number) If exempted from tax reason for it (provision in the Act/Government Order) S.6 1[FORM 5 [See rule 12(1)] .............................Village Panchayat Number................. Date....................... NOTICE Intimated to Shri/Smt...............................as per rule 12(1) in the Kerala Panchayat Raj (Property tax, Service cess and Surcharge) Rules, 2011. As the assessment of property tax shown in the return of property tax submitted by you as per rule 11(1) for the purpose of levying property tax to your building having number ............... in Ward No.................... in this Village Panchayat, is seen not in accordance with the provisions as per rules 5, 6 and 9 of the above said rules/It is seen that you have not made self assessment of S.7 Year....................... 1[Form 6 [See Rule 12(4) and (6)] ..............................Village Panchayat Present Previous 1. Ward Number (1) (2) 2. Name of the Ward 3. Building Number 4. Details of the tax last remitted: 1[FORM 7 [See rule 12(6)] .............................Village Panchayat No.................. Date....................... NOTICE Intimated to Shri/Smt...................................as per rule 12(6) of Kerala Panchatat Raj (property tax, service cess and surcharge) Rules, 2011. As you have not submitted the property tax return as per rule 11(1) for the purpose of imposing property tax to the building owned by you bearing Building No...............in Ward No..........of this Village Panchayat, You are informed that, an amount of Rs...............has been fixed as annual property tax to the above said building in accordance with the provisions as per rule 5 S.9 FORM 8 [See Rule 13] ...................................................Village Panchayat 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.10 FORM 9 [See Rule 14(1)] ..........................................Village Panchayat Demand Notice No. ........................... /20............................. Date: ............................... Notice requiring remittance of property tax as per rule 14(1) of the Kerala Panchayat Raj (Property Tax, Service cess and Surcharge) Rules, 2011. Name of Owner of the Building .............................. Ward No. ............................. Building No. .............................. Period for which tax levied Demand No. Annual P S.11 FORM 10 [See Rule 20(1)] .............................................Village Panchayat Property tax assessment register of unlawfully constructed buildings Ward No:............................. Serial No. Name of the Owner of Building Address Survey No. and Village Nature of violation of law (Panchayat Raj Act/ Building construction Rules/ Coastal Regulation Law/ others (clarify) Date of completion of construction of building/Date of beginning of use S.12 FORM 11 [See Rule 21 (3)] ..........................................Village Panchayat 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 (Not less than 60 days in half year) Days for which proportionate dedu 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 203 (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 Commentary: Kerala Panchayat Raj (Property Tax, Service Cess and Surcharge) Rules, 2011 – Section 6 Introduction Section 6 of the Kerala Panchayat Raj (Property Tax, Service Cess and Surcharge) Rules, 2011 governs the computation of Deductions and Additions to be made on the Basic Property Tax. This section operationalizes Section 233 of the Kerala Panchayat Raj Act, 1994, providing specific mathematical adjustments based on factors such as the type of building material, age, flooring, roofing, and environmental considerations. The judicial commentary below highlights the strict procedural adherence required for applying these deductions/additions, the scope of factors considered, and the consequences of non-compliance with this statutory formula. What Does Section 6 Say Section 6 mandates that after determining the "Basic Property Tax" (calculated by multiplying the plinth area by the applicable rate), specific additions or deductions must be applied to derive the "Annual Property Tax."* Additions: Made for factors indicating higher value or usage (e.g., specific building materials, AC facilities).* Deductions: Made for factors indicating lower value or specific categories (e.g., age of building, residential purpose, disabled provisions).* Cap on Deductions: In many interpretations of the scheme associated with Section 6, deductions generally cannot exceed 75% of the Basic Property Tax.* Final Calculation: The amount arrived at after these adjustments (rounded to the next higher whole number) constitutes the Annual Property Tax [Perinthalmanna Municipality, Represented By Its Secretary vs Abdul Kareem]. Essential Ingredients Existence of Basic Tax: A correctly computed Basic Property Tax (Plinth Area x Rate) serves as the base for Section 6 operations [Kapico Kerala Resorts Pvt. Ltd. VS State of Kerala]. Identification of Factors: The Panchayat must identify specific affirmative factors (for addition) or negative factors (for deduction) present in the building structure. Adherence to Limits: Deductions are subject to a statutory ceiling (typically 75% of the basic tax) unless higher rates are prescribed for specific building grades [Perinthalmanna Municipality, Represented By Its Secretary vs Abdul Kareem]. Documentation: The application of these rules must be reflected in the public notice (Form 1) and the subsequent demand notice (Form 9) to be legally valid [Perinthalmanna Municipality, Represented By Its Secretary vs Abdul Kareem]. Exclusion of Improvements: Once an initial assessment is completed, new additions, structural improvements, or changes in use do not automatically attract the standard Section 6 deductions/additions unless a fresh assessment is initiated [Perinthalmanna Municipality, Represented By Its Secretary vs Abdul Kareem]. Scope of Section 6 The scope of Section 6 extends beyond simple tax multiplication; it involves a technical assessment of the building's physical and functional characteristics.* Multi-story Adjustments: For multi-storied commercial/office buildings, specific percentage reductions (5%, 10%, 15%, etc.) apply to upper floors beyond the ground floor [Perinthalmanna Municipality, Represented By Its Secretary vs Abdul Kareem].* Residential vs. Commercial: Different deduction scales apply to residential buildings compared to commercial premises [Perinthalmanna Municipality, Represented By Its Secretary vs Abdul Kareem].* Limitation on Recovery: While Section 6 determines the amount payable, the recovery of arrears calculated under these rules is barred by a limitation period of three years from the date of the demand notice [Rosamma Thomas, W/o. K.T. Thomas vs Kottayam Municipality, Rep. By Secretary][Perinthalmanna Municipality, Represented By Its Secretary vs Abdul Kareem]. Punishment for Section While Section 6 itself outlines the calculation method, failure to adhere to the procedural requirements of applying Section 6 (or the related Rules 4 and 10) does not result in a specific "punishment" under Section 6. Instead, the penalty manifests as the invalidation of tax demand notices.* Quashing of Notices: If the Panchayat fails to follow the mandatory procedure of applying deductions/additions prescribed in Section 6 or releases notices that violate the mathematical limits of the Rules, the courts quash the entire demand notice [K. M. Subaidabi, W/o Late Bavakunju VS State Of Kerala][K. M. Subaidabi, W/o. Late Bavakunju VS State of Kerala, Represented by Its Secretary, Local Self Government Department, Government Secretariat].* Re-evaluation Direction: The authority is directed to redo the formalities and issue fresh notices in compliance with Section 6 statutes within a stipulated timeframe (often six months) [K. M. Subaidabi, W/o Late Bavakunju VS State Of Kerala].* No Refund of Correct Tax: If taxes were collected strictly under Section 6 according to the law, no refund is due. However, if the mandatory process was bypassed, the collection is held to be without authority of law [State Of Kerala VS K. P. Muhammed Ashraf, S/o. Muhammed Kunhi Haji].* Interest Liability: Even when demands are set aside due to procedural lapses in applying Section 233 (parent act) and Rule 6, interest may still be liable for the period the tax was legally due, calculated from the due date (usually Oct 31st) of assessment years [M-Far Hotel Limited VS State of Kerala]. Legal Comments "Procedural Compliance" - Failure to strictly follow Section 6 and Rule 10 procedures renders the demand notice inadmissible, invalidating the tax collection regardless of the underlying liability [K. M. Subaidabi, W/o Late Bavakunju VS State Of Kerala] "Mandatory Fork" - Adherence to both the Kerala Municipality Act (Section 233) and the specific Rules 2011 (Section 6) is mandatory; ignoring procedural rules invalidates the levy [K. M. Subaidabi, W/o. Late Bavakunju VS State of Kerala, Represented by Its Secretary, Local Self Government Department, Government Secretariat] "Deduction Cap" - Deductions allowed under the scheme linked to Rule 6 generally cannot exceed 75% of the basic property tax unless specific exceptions apply [Perinthalmanna Municipality, Represented By Its Secretary vs Abdul Kareem] "Multi-Story Reduction" - Specific percentage deductions (5%-25%) are mandated for upper floors in multi-storied commercial buildings under the assessment rules [Perinthalmanna Municipality, Represented By Its Secretary vs Abdul Kareem] "Fresh Assessment Limitation" - New structural improvements or changes in use after the initial assessment do not attract fresh deductions/additions under Section 6 without a new revision process [Perinthalmanna Municipality, Represented By Its Secretary vs Abdul Kareem] "Three-Year Restraint" - Even if Section 6 is applied correctly, recovery of property tax arrears is legally barred for periods exceeding three years prior to the demand notice [Rosamma Thomas, W/o. K.T. Thomas vs Kottayam Municipality, Rep. By Secretary] "Valid Fixation Principle" - The computation under Section 6 is valid only if it aligns with the Government's prescribed limits for minimum and maximum enhancements [State Of Kerala VS K. P. Muhammed Ashraf, S/o. Muhammed Kunhi Haji] "Form-9 Requirement" - Demand notices issued without accurately reflecting the deductions/additions of Section 6 in the prescribed Form-9 are deemed invalid [Rosamma Thomas, W/o. K.T. Thomas vs Kottayam Municipality, Rep. By Secretary] "Non-Appealability of Rules" - Once the rate is fixed under Section 6, assessments made under the old system cannot be reassessed solely on Section 6 principles without fresh procedural steps [M-Far Hotel Limited VS State of Kerala] "Estoppel Immunity" - Payment of tax under protest in a previous year does not estop an assessee from demanding that Section 6 provisions be followed in subsequent assessments [01500037416] "Unlawful Levy" - If the Panchayat fails to implement the adjustments required by Section 6, the resulting tax demand is considered an unlawful levy under Article 265 [Perinthalmanna Municipality, Represented By Its Secretary vs Abdul Kareem] "Substantial Non-Compliance" - Mere substantial compliance is insufficient; the specific form and mathematical application of Section 6 are rigid requirements that cannot be relaxed [Rosamma Thomas, W/o. K.T. Thomas vs Kottayam Municipality, Rep. By Secretary] "Re-evaluation Mandate" - Courts direct municipalities to re-evaluate properties under Section 6 within six months if previous notices were quashed for procedural defects [K. M. Subaidabi, W/o Late Bavakunju VS State Of Kerala] "Interest from Due Date" - Interest liability under Section 209E continues from the statutory due date (e.g., Oct 31), even if the revised notice under Section 6 is issued much later [M-Far Hotel Limited VS State of Kerala] "Reverse Burden" - The onus lies on the Panchayat to demonstrate that it has factored in all Section 6 deductions/additions; failure shifts the burden to the court [K. M. Subaidabi, W/o Late Bavakunju VS State Of Kerala] "Scope of Additions" - Additions for factors like air conditioning or specific materials are additive and specific, not arbitrary enhancements under Section 6 [Perinthalmanna Municipality, Represented By Its Secretary vs Abdul Kareem] "Legislative Intent" - The detailed provisions of Section 6 reflect a legislative intent to balance revenue generation with the economic reality of the building's condition [C. M. Indira, Accounts Officer (Bills), O/O The General Manager Telecom VS Secretary, Kunhimangalam Grama Panchayat,] "Not Ultra Vires" - The framework of Section 6, when amended by Orders, is upheld as within the statutory power of the State Government under Section 233(19) [State Of Kerala VS K. P. Muhammed Ashraf, S/o. Muhammed Kunhi Haji] "Change of Use Exception" - If a building's use changes after assessment, it may become ineligible for certain Section 6 benefits previously granted [Perinthalmanna Municipality, Represented By Its Secretary vs Abdul Kareem] "Statutory Charge" - Proper application of Section 6 creates a statutory charge; failure to apply it renders the charge void ab initio [Perinthalmanna Municipality, Represented By Its Secretary vs Abdul Kareem]