Property tax is a direct tax imposed on real property and is a significant source of income for the local government. The taxation system requires the owners, lessees or occupiers of the property to pay the tax that is calculated on an annual basis. The collected money is utilized for various public services like constructing libraries, repairing roads, sanitation etc. Payment of property tax on time is essential to avail tax benefits and avoid legal hassles. In Odisha, the terminology holding tax is used to depict property tax.
As per Odisha Municipal Act, 1950, the State Government of Odisha collects holding tax. However, the state government has planned to get rid of holding tax and introduce property tax all municipal bodies / urban local bodies of the state. For property tax to be introduced, the Odisha Municipal Act, 1950 and Odisha Municipal Corporation Act, 2003 have to be amended. The rules and regulations regulating the property tax are still under process. Therefore, currently, Holding Tax is being collected under the Odisha Municipal Act, 1950.
Properties Liable for Property Tax
- Residential
- Commercial
- Recreation and Sports
- Industrial
- Hospitals and nursing homes
- Educational
- Public purposes
- Hotels and Restaurants
Calculation of Odisha Property Tax
The holder who is in title with any holding within the corporation limits is liable to pay the Holding Tax @ of 20.5% of the annual rental value of the property depending on its nature, i.e. either residential or commercial. The method of calculating holding tax is as follows.
Annual Rental Value = Annual Rental Value per square feet X Total build up area (in square feet)
Annual Rental Value Calculation:
a)Residential
The Annual Value of a Holding for residential purpose is calculated as per following procedures.
Step I – Plinth area of the holding in Sq. Meter x Rs 13.65
Step II – Deduct 15% of the preceding value towards repair & maintenance
Step III – Add 0.5% of the land cost where the holding is located (Land cost to be determined as per G.A. Department Notification dated 01.05.1998)
Holding tax of 20.5% of the Annual Value is levied that includes Latrine Tax – 2.5% and Street Light – 5% .
b) Commercial holding
The Annual Value of Holding of a Commercial unit is calculated as follows.
Step I – Add Civil Cost of the building + the cost of P.H & Electric fitting
Step II – Take 7.5% of the arrived value
Step III – Add 0.5% of the land cost with the previous value
Step IV – The Holding Tax payable per annum is 20.5% of the cost arrived at Step III.
C) Residential holding used on rent
Calculation of tax for holdings given on rent is as follows:
Step I – Monthly rent of the building x 12
Step II – Deduct 15% of the previous value towards maintenance cost
Step III- Add 0.5% of the Land Cost where the building is located
Step IV- Hence, the annual value of the building is the sum of Step I and Step III, from which the value arrived at Step II is deducted.
Note: Government buildings, government hospitals, government educational institutions, government cultural institution and other such government institutions are being exempted of paying 10% Holding Tax as per the Act.
Categories of buildings and rates of annual rental value:
| Residential Buildings | Rs 2.00 per sq ft |
| Small Shops | Rs 5.00 per sq ft |
| Kalyan Mandap, Gold Shop, Nursing Home, Hotel & Lodging etc. | Rs 7.00 per sq ft |
| Bank, Insurance, Companies & Show Rooms | Rs 10.00 per sq ft |
Online Payment of Odisha Property Tax
Step 1: Visit the official website of e-Municipality Odisha
Step 2: Under “Quick Services” click on Property/Holding Tax
Step 3: Choose your District and the respective ULB from the given dropdown.
Step 4: Click on “Login”. Enter the login credentials to access the e-Municipality application.
Step 5: Provide required details and make necessary payment.
To view demand or check payment status before payment, click on ‘View Demand/Payment Status’ under property tax services. Fill all the details and click on “Search” button. In the screen that appears, check the assessment Details, Demand Details and Payment Details.
Step 6: After making required payment, print the receipt.
FAQs
What is Odisha Property Tax?
Odisha Property Tax is a tax levied by the local municipal authorities on property owners within the state. This tax helps fund essential public services like sanitation, road maintenance, and other civic amenities.
Who is required to pay property tax in Odisha?
Property owners, including individuals, companies, and organizations that own residential, commercial, or industrial properties within municipal limits, are required to pay property tax in Odisha.