As mandated by Indian law, each state has its own authorized body that collects property taxes. Property Tax AP is no exception. The Property Tax of Andhra Pradesh will vary based on the type of property as well as the jurisdiction. The taxes collected from one area are used to improve the public infrastructure of that particular area. Some of the places where this revenue is usually spent include improving education, sewer services, road constructions, fire services, and other public services that will be of great use to the public.
What are the Taxable Properties Under the AP House Tax?
- All commercial and residential buildings within the authorization of the Urban Local Bodies (ULBs)
- Any residential building with an Annual Rental Value of more than Rs 600.
Kindly note that residential properties with an annual rental value of less than Rs 600 are exempted from AP House Tax payment. It is the responsibility of promoters and developers to register any changes in the property details with immediate effect so that the Town Planning Department can make the necessary changes in the Property Tax Assessment.
Purpose
Property Tax acts as one of the main sources of revenue for the Urban Local Bodies (ULB) in Andhra Pradesh. The local governing body will assess the property and collects the property tax. The collected taxes are used for the jurisdiction in which the property is situated. Some of the services for which the funds are used include education, sewer improvements, road and highway constructions, fire service and other services that highly benefit the community.
Components of Property Tax
As per section 85 of Municipal Corporation Act, the tax determined by the council will be levied on all buildings and lands within the limits of the Municipal that includes the following components.
- tax for general purpose
- water and drainage tax
- lighting tax
- scavenging tax.
Assessment of Property Tax
- Serial Number
- Name of the owner
- Door No.
- Locality
- Zone Number
- Type of construction
- Nature of usage
- Plinth area in sq. meters
- As per Form A notification, Monthly rental value fixed per sq. meter. of plinth area
- Monthly rental value fixed on the property
- Half-yearly property tax
- Date of service of special notice
- Date of receipt of revision petition
- Date of hearing
- Orders of the Commissioner in brief
- Property tax fixed after disposal of revision petition
- Initials of the Commissioner
Property Tax Andhra Pradesh- Various Rates
| Range of Annual Rental Value (Residential) | Property Tax Rate |
| Up to Rs 600 | Exemption from Property Tax payment |
| Rs 601- Rs 1200 | 17% |
| Rs 1201-Rs 2400 | 19% |
| Rs 2401-Rs 3600 | 22% |
| >Rs 3600 | 30% |
Other than these, for all commercial buildings, the property tax is fixed at 30%.
Andhra Pradesh Property Tax Calculation
In Andhra Pradesh, property tax is calculated based on the Annual Rental Value (ARV) and the Tax Rate as may be fixed by the Corporation for each property in the limits of the Urban Local Bodies.
Annual Rental Value
Annual rental value of buildings and lands is the basis for levy of property tax in Municipalities. The Annual Rental Value of a property is calculated based on the following parameters.
- Zonal location of the property
- Residential/Non-residential status
- Plinth area
- Age of the property
- Type of construction
- Other parameters applicable to specific situations.
Property Tax Payment Online
Step 1: Visit the official website of the Commissioner and the Directorate of Municipal Administration online portal to pay the property tax online.
Step 2: Under online Payment tab on the home page, click Property tax.
Step 3: The online payment section appears. Select the District, Municipality where the property is located and select the payment type as property tax from the drop-down list.
Step 4: On clicking submit, the ‘property search’ dialog box appears. Enter the required details such as owner name, mobile number etc. and click search that redirects to the Payment section.
Step 5: Click ‘Pay Tax’. The amount to be paid will be displayed. Make necessary payment through internet banking or credit/debit card. Check-list the terms and conditions and click submit.
Step 6: The acknowledgement receipt on successful payment will be generated.
FAQs
What services does the CDMA website provide?
Other than Property Tax, this website provides a bevvy of other vital services like Trade licensing, AP panchayat property tax payment, door number search in Andhra Pradesh, marriage and birth registration, land tax etc.
What is the Property Tax for commercial buildings?
It is fixed at 30% annually for all non-residential buildings.