Property Tax - COMMUNISM AND Capitalism

Property Tax - COMMUNISM AND Capitalism

A property tax or millage rate[1] is an ad valorem tax on the value of a property, usually levied on real estate. The tax is levied by the governing authority of the jurisdiction in which the property is located. This can be a national government, a federated state, a county or geographical region or a municipality. Multiple jurisdictions may tax the same property.

It may be imposed annually or at the time of a real estate transaction, such as in real estate transfer tax. This tax can be contrasted to a rent tax, which is based on rental income or imputed rent, and a land value tax, which is a levy on the value of land, excluding the value of buildings and other improvements.

Under a property-tax system, the government requires or performs an appraisal of the monetary value of each property, and tax is assessed in proportion to that value.

https://en.m.wikipedia.org/wiki/Property_tax

Now, In my view the property tax for houses, apartments, Establishment, Office space, and so on has to adopt Capitalism and communism.  The property tax has to be calculated on the volume of building that is the outer volume of the building + open space area. 

Let's assume a house on plot 2400 sq. Ft is constructed with set backs. 

The building is constructed with a surface area covering 1600 sq. Ft and the remaining 800 sq. Ft is open space for walk, car park, sunlight, air or wind and so on. 

The tax for the flat is calculated on the super built up area which includes all the area in which some form construction is built. 

Now, going forward all buildings shall be taxed on open area and constructed area. 

The tax for open area could be very minimal, for example 0.01 Rs.*=8=Rs. 8per annum.

Let's say the Constructed area volume is 1600*10 ft height, that would mean the outer volume is 16000 cu. Ft and the tax for the same would be let's say, 16000*0.01 rs. = 160 per annum

The overall tax for the plot is 160 +8= Rs. 168 பேர் annum. 

Now, the tax slabs could be as follows for plots of size starting from 600 sq. Ft and it's multiples, the assumes 1/4 of the lot is left open and 3/4 of the plot is used for construction,  450 +150. 

The tax charges can be simply in the plot size that would start from 600 sq. Ft and above, 

600 sq. Ft to 1200 sq. Ft tax rate @0.001 rs. = Rs. 0.6 to Rs. 1.2 Per Annum

1201 sq. Ft to 2400 sq. Ft tax rate @0.01 rs. =  Rs. 12.01 to Rs. 24 Per Annum

2401 sq. Ft to 4800 sq. Ft tax rate @0.1 rs. =  Rs. 240.1 to Rs. 480 Per Annum

4801 sq. Ft to 9600 sq. Ft tax rate @ 0.125 rs. =  Rs. 600.125 to Rs. 1200

9601 sq. Ft to 19200 sq. Ft tax rate @ 0.150 rs. =  Rs. 1440.15 to Rs. 2888

19201 sq. Ft to 38400 sq. Ft tax rate @ 0.175 rs.=  Rs. 3360.175 to Rs. 6720

38401 sq. Ft to 76800 sq. Ft tax rate @ 0.2 rs. =  Rs. 7680.2 to Rs. 15,360

76801 sq. Ft to 143600 sq. Ft tax rate @ 0.225 rs. =  Rs. 17,280.225 to Rs. 32.310

143601 sq. Ft to 284200 sq. Ft tax rate @ 0.250 rs. =  Rs. 35,900  to Rs. 71,050

And so on... 

And so on... 

This means the Bigger the plot, bigger the building, the tax rate increases as per the above slabs given as illustration. This generates enough revenue to the state Governments treasury account.

This could become the basis for tax charges for House, Establishments, Shops, offices, commercial establishments.  The open space would be charged as described above.  The rates are given for illustrative purpose and the rates can be increased or reduced depending on various parameters.  If we feel the rates are high it can reduced further or there is a opinion the rates are high then it can increased further.

Then the same Rate Yard Stick can applied for Constructed Building that is to considered the height or depth.  The Volume calculation would simply be base rate in the above slabs * height or depth of the building.   That each different units ranging in the above Square Feet Slabs would pay tax as per the rate defined with in the slab.  

For (e.g) in a Plot of 600 Sq. Ft two units of 450 and 450 are constructed with a height of 10 feet.  The tax for this building would be 450*10*0.001 + 150*0.001 + 450*10*0.001 =4.5+.15+4.5 = Rs 9.15 Per annum as example invoiced against each separate unit identified by different Electricity Meter in the unit. 

Hope state Government brings this change by necessary law or amendments. 

What do we think or say about this idea?