Jammu and Kashmir Government issues notification imposing Property Tax on land and buildings across J&K

The Government of Union Territory of Jammu and Kashmir (J&K) has issued a notification imposing property tax through urban localbodies (Municipal Corporation, Committees) in their respective areas across Union Territory. .In this regard, a notification was issued on February 12, 2021 by Dheeraj Gupta, Principal Secretary to the Government, Housing and Urban Development department of UT J&K..“In exercise of the powers conferred by the Jammu & Kashmir Property Tax Board Act, 2013 (Act), the Jammu and Kashmir Municipal Act, 2000, and the Jammu and Kashmir Municipal Corporation Act, 2000, the Governmenthereby direct that for the levy of property tax on any land or building, the value of land as notified in terms of Jammu and Kashmir Preparation and Revision of Market Value Guideline Rules 2011(circle rate) shall be a key determinant of the value of the property apart from the nature of construction, the kind of use, the age of the property, or any other relevant consideration," the notification said..It further stated that the Property Tax Board, or as the case may be, the Municipal Corporation, Council or Committee concerned shall ensurethat the value of land so notified is adequately factored in while determining the unit area values for levy of property tax under the Act. .Pertinently, this would be the first time residents of Jammu and Kashmir will have to pay property tax..Notably, the powers to levy tax on land and building in J&K can be traced to the Jammu and Kashmir Municipal Act, 2000 and Jammu and Kashmir Municipal Corporation Act, 2000. In October, 2020, the Union Ministry of Home Affairs (MHA) had empowered the Government of J&K to impose property tax through the Municipal Corporations, Municipal Councils and Municipal Committees in their respective areas across UT of Jammu and Kashmir..Interestingly, Lt Governor of Jammu and Kashmir Manoj Sinha had last year said that the J&K government will not impose any property tax in the Union Territory.“Let me clarify that there is no proposal to impose the property tax in Jammu and Kashmir,” Sinha had said while addressing ‘My Town My Pride’ meeting in north Kashmir’s Baramulla district last year.