Hyderabad: Ameenpur residents cry foul over property tax assessments

Hyderabad: The Ameenpur municipality, an urban local body located close to the Greater Hyderabad Municipal Corporation (GHMC) limits, was upgraded in 2018 from a panchayat after which the property tax collection increased. Currently, its tax collection rate is more than that of the GHMC areas, such as Himayathnagar, Basheerbagh, Narayana guda. Most residents of Ameenpur live in apartments. With ongoing development, building permissions are continuously given by the authorities.

According to the Municipal Administration department updated information on its website, the authorities have given 145,664 building permissions and green signal for 320 layouts till November 2020.

Residents of Ameenpur complain that the municipality does wrong assessment of the properties. There is no tax rate difference between residential and commercial buildings. This has become a major concern for them, as there is no proper tax collection, according to the Municipal Act.

A resident of Ameenpur, who owns a ground-plus first-floor building, built on 200 square yards, V Pramod, has been forced to pay Rs 40,000 as property tax in the current financial year. However, the levy on same size property in GHMC limits is less.

Another property owner in Ameenpur, Rajesh Kumar, who has three-storied building, built on a 350 square yard plot, questions "on what bases the administration is collecting higher property tax." He said the administration should at least collect property tax equivalent to that paid by owners of houses or apartments in GHMC limits.

The residents' welfare association of the municipality has demanded authorities to reduce the property tax rate. It urged the administration to follow the Municipal Act, while alleging that there is no segregation of commercial and residential buildings.

The Ameenpur municipal area is 17.84 sq.km and as per 2011 Census the population is 44,698. It has doubled after the formation of the municipality, as on today, including the floating population. There are above one lakh households. This ULB has a voter strength of 47,056. There are 24 wards of which property tax is collected in 19. There are 174 colonies. The municipality has five hamlets ( Ameenpur, Beeramguda, Bandamkommu, Uskebavi, Narregudem). Ameenpur town is connected to the Bombay highway NH-9 and the Nehru ORR. The Ameenpur lake is the first biodiversity heritage site in the country. It attracts fish and birds. More people are attracted to purchase lands and own houses in Ameenpur.

But, when it comes to property tax payment, residents have no option but to pay exorbitant amounts charged by authorities. According to a Municipal Administration department official, property tax is one of the main sources of revenue for the urban local bodies. Residential and commercial properties situated within the ULB limits are assessed for tax. Based on such assessments, taxes are levied on property owners.

"Property tax is assessed for each property located in the limits of the ULB based on the annual rental value and the taxation rate. The annual rental value of a property is calculated based on parametres, like plinth area, zonal location of property, residential/non-residential status, age of property, type of construction and others applicable to specific situations," said a senior official of the tax wing of the Commissioner and Director of Municipal Administration (CDMA).