J&K Government Issues Notice Imposing Property Tax on Land/Building in Jammu & Kashmir

Jammu and Kashmir government has issued a notice that imposes a property tax on land and buildings through urban local bodies across Union Territory of Jammu and Kashmir

This notification was issued on February 12, 2021

On February 12, 2021, this notice was passed by the Principal Secretary to the Government, Housing and Urban Development department of Union Territory of Jammu and Kashmir, Dheeraj Gupta.

“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 Government hereby directs 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 states.

Additionally, this notification also stated that while calculating the unit area values for imposing tax under the Act. the Property Tax Board, the Municipal Corporation, Council or Committee should make sure that the value of land is properly factored in.

This will be the first time property tax has been imposed in Jammu and Kashmir.

The authority to impose property tax in J&K can be traced to the Jammu and Kashmir Municipal Corporation Act, 2000 and Jammu and Kashmir Municipal Act, 2000.

The Union Ministry of Home Affairs in October 2020 had given the power to J&K Government to levy property tax through the urban local Bodies in their respective areas across UT of J&K.

Notably, in the year 2020, Manoj Sinha, the Lt Governor of J&K stated that the government of Jammu and Kashmir will not levy any property tax in the Union Territory.