Your municipal property tax bills will see a spike of anywhere between 30% to 50%, with the state government doubling the current jantri rates, effective from Sunday.
Of the four-factor multiples in the carpet area-based property tax formula of the Ahmedabad Municipal Corporation (AMC), the ‘location’ factor is directly linked to the jantri rate.
The factors range between 0.6 for poor areas marked ‘D’ to 1.6 for prosperous areas marked ‘A’. The city is divided into four classes: A, B, C, and D.
If, for instance, as per the old jantri rate, a property is in a ‘D’ class area with a jantri evaluation of Rs 6,750 or below, then the new jantri rate will elevate the property to ‘C’ class as it will fall in the Rs 6,750 to Rs 13,750 bracket. Similarly, if your property is in a ‘B’ class area with a jantri band of Rs 13,750 to Rs 22,000, then it will be elevated to an ‘A’ class area with a jantri band of above Rs 22,000 per sq m.
“The respective property factors will apply to the formula as soon as the property gets assigned to a new class of area,” says a senior AMC official in the property tax department.
The other three factors are the age of the property, usage, and occupancy.
“The new jantri revision will increase the number of properties in A and B classes, and there will also be a corresponding rise in their taxes. To be precise, the property tax for flats, rowhouses, bungalows or tenements, shops or offices will increase,” adds the property tax official.
In its latest budget proposal, the AMC announced an increase in the base price of property tax. This meant an additional tax burden of Rs 500 crore on Amdavadis. With the doubling of jantri rates, this burden will increase from Rs 500 to Rs 700 crore.
“The AMC will see an additional tax collection of Rs 1,000 crore to Rs 1,200 crore in the new financial year,” adds the AMC official.
