STATUS OF PERFORMANCE EVALUATION SYSTEM

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GREATER HYDERABAD MUNICIPAL CORPORATION
PROPERTY TAX SELF ASSESSMENT - LESSONS
General revision of Property Tax as contemplated
under HMC Act, 1955 was not done in MCH for the
past few decades. In the absence of this,
property owners continued to pay taxes as levied
decades ago causing heavy financial loss to MCH.
The highest property Tax collection of Rs. 58
Crores was made during the year 1998-1999.
Attempts to revise and improve the Property Tax
base made earlier were caught in legal
problems. Keeping the above points in view, the
scheme of self-assessment of Property Tax was
introduced during the year 1999-2000. This
scheme was introduced by taking the advantage of
provisions under Section 213 of HMC Act in which
Commissioner is empowered to call for information
pertaining to the property from owners/occupiers.
The information in self-assessment form is
called as a Written Return based on the
requisition made by the Commissioner, under
section 213 of the HMC Act 1955. The Return is
to be filed with the signature of the owner or
occupier of property.
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• The scheme of Self-Assessment is introduced to
  achieve the following objectives-

• To ensure complete transparency and openness in
  levy and Collection of Property Tax and to
  enable citizens / Taxpayers to understand the
  basis of taxation and to calculate the tax by
  themselves.
• To build a computerised Property Tax Data Base
  with each property in the Twin cities by
  assigning an unique Property Tax Identification
  Number, (PTIN) so as to enable the taxpayers to
  have information of their property tax online and
  to pay property tax at any e-Seva Centers /
  Citizen Service Canters / Circle Offices.
• Bench marking of rate per sft. both for
  residential and non-residential properties to
  eliminate discretion, in the levy and collection
  of Tax and to avoid questionable intention and
  harassment.
• To minimize prolonged disputes between tax-payers
  and MCH, pending since 10 to 15 years.
• To establish a healthy relationship between MCH
  and Tax Payers / Residential Welfare
  Associations.
• To link services with tax payment so that tax
  payers get value for money (Quality services) and
  also feel proud of contributing their mite to the
  development of their own city.
• To assist their fellow citizens living in slums
  and poor localities, to gain access to Basic
  civic amenities.

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Self-Assessment Bench Mark Rates

• For existing residential properties Monthly
  Rental Value
• Low income areas 0.40 paisa per sft.
• Middle income areas 0.60 paisas per sft.
• High income areas 1.00 rupee per sft.
• For New residential properties M.R.V.
• All areas Re.1.00 per sft.

4
Self Assessment Returns
Non-Residential Properties

• Zonewise/type of building wise / type of
  non-residential use wise Bench Mark Rates are
  arrived depending on the rental value of
  neighbouring properties and Bench Mark Rates of
  properties usage wise are available with all the
  Deputy Municipal Commissioners.

5

• USAGE OF BUILDINGS
• Star Hotels
• Other than Star Hotels
• Commercial Complexes
• Cinema Theatres
• Kalyana Mandapams /
• Function Halls
• 6. Hospitals / Nursing Homes
• 7. Education Institutions
• 8. Industries
• 9. Religious and Charitable Institutions
• 10. Others.

• Category of Buildings
• 1. R.C.C
• 2. Non- R.C.C
• a) Cellar
• b) Ground Floor First Floor
• c) Second Floor and above.

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GREATER HYDERABAD MUNICIPAL CORPORATION
EFFORTS MADE TO INCREASE THE PROPERTY TAX DEMAND

• Computerization of all property tax assessments.
• Introduction of self-assessment scheme.
• Identification of un-assessed properties and
  bring them to tax net.
• Identification of under-assessed properties and
  their rationalisation.
• Identification of properties where there is a
  change in usage i.e. from residential to
  non-residential and their rationalization.

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GREATER HYDERABAD MUNICIPAL CORPORATION
METHODS ADOPTED FOR IMPROVEMENT OF COLLECTIONS

• Collection of tax through self-assessment system.
• Linking of property tax database to e-Seva
  Centers /Citizen
• Service Centers / Circle Offices.
• Computerisation of Demand Bills.
• Serving of Demand Bills through courier
  agencies.
• Making wide publicity for payment of taxes.
• Facilitating for payment of property tax
  through e-Seva
• Centers, Citizens Service Centers, MCH
  Circle Offices
• and Collection staff.

8
GREATER HYDERABAD MUNICIPAL CORPORATION

• Serving of Demand Notices on defaulters.
• Issue of Legal Notices to defaulters
• Issue of Legal Notices for realization of
  bounced cheques.
• Issue of warrants and attachment of movable
  properties of
• defaulters
• Collection of penal interest _at_ 2 per month
  on belated
• payments.
• Fixing daily targets locality wise on
  collection staff.
• Monitoring the performance of Collection
  Staff by
• conducting Weekly Review Meetings.
• Rewarding highest Tax Collectors through
  incentive
• awards and merit certificates.

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Self Assessment Returns

• In any case, the existing tax shall not be
  reduced after filing self assessment returns. If
  any existing property owner / occupier files Self
  Assessment Returns reducing the existing tax,
  it shall not be entertained.

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MUNICIPAL CORPORATION OF HYDERABAD Property Tax
Collections
Budgeted to cross the Rs.200 crore mark during
the current year Growth from Rs.153.24 crores to
Rs.210 Crores from 2002 03 to 2006-07
Rs. in Crores
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REASONS

• Frequent Reviews
• Motivate to the Tax payers.
• Incentives to the Tax payers.
• In time care on court matters.

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State Bank of Hyderabad sponsored Prize Money
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Lessons from Property Tax Reforms in Hyderabad
Contd

• Slab rate desirable for homogeneous
• properties only
• Correction of past inequities potential source
  of revenue mobilisation in cities
• Involvement of tax-payers Resident Welfare
  Associations in the determination of tax and
  provision of services improves tax compliance
• Self-assessment is first-best strategy to deal
  with problems of long litigation
• Tax Reforms need to be incremental and
  well-timed - backed by the political will.

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PAYMENT OF DUES ONLINE

• Government organizations generate their revenue
  through taxes they raise from the citizens. This
  hinges on a sound, transparent, efficient and
  foolproof tax collection system.
• Its important that the citizens are able to pay
  their dues through payment gateway, e-Seva
  centers, citizen service centers and banks with
  ease and flexibility.

• Computerization of all the assessments and their
  web linking for citizens to access real time
  information.

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PAYMENT OF DUES ONLINE
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MOBILE PROPERTY TAX COLLECTIONS

• Property tax data loaded on to a handheld device.
• After payments are made, a printed receipt is
  given immediately
• Data is updated later on the main server

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GIS IMPLEMENTATION ARCHITECTURE