State-level property tax board in the offing

HYDERABAD: Local bodies in the state, including the Greater Hyderabad Municipal Corporation, should not increase property taxes as per their wish. A state-level property tax board will be set up soon which will fix the quantum of increase in the property tax from time to time. A bill to this effect, Andhra Pradesh Municipal Laws (Amendment) Bill-2012, was introduced by municipal administration minister Manugunta Maheedhar Reddy in the Assembly on Friday.According to the bill, the 13th Finance Commission recommended that state governments put in place a state-level property tax board, which will assist all municipal councils and corporations in the state to put in place an independent and transparent procedure for assessing property tax.As recommended by the Finance Commission, the board will be constituted to enumerate or cause to enumerate all properties within the jurisdiction of the municipalities. The proposed board will review the present property tax system and make suggestions for proper assessment and valuation of properties, and will recommend modalities for periodic revision.The findings, suggestions and recommendations of the board will be communicated to the respective urban local bodies for necessary action. Accordingly, the board will provide assistance and technical guidance to all municipal bodies for proper assessment and revision of property tax. The respective municipal commissioners are required to consult the board before issuing draft notification fixing monthly rent proposed per square metre of plinth area for assessment or revision of property tax. The board will study the draft notification and make a comparative study of the monthly rental values proposed by other municipalities in the district. The commissioners shall give due consideration to the views offered by the board. It has been decided to amend the municipal laws in accordance with the bill introduced in the House on Friday.The chairperson of the board shall be a person who served as judge of the High Court. The board may be entrusted with the function of suggesting criteria for exempting buildings and lands from payment of property tax. Another bill, AP (Andhra Area) Inams (Abolition and Conversion into Ryotwari)(Amendment) Bill-2012, was also introduced in the Assembly. In all, three bills were introduced in the Assembly on Friday.