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HYDERABAD MUNICIPAL CORPORATIONS (ASSESSMENT OF

1. Short title
2. Definitions
3. Annual Rental Value
4. Division of Municipal Corporation to Zones
5. Classification of buildings
6. Nature of use of the Buildings
7. Fixation of monthly or yearly rent
8. .
9. Enhancement on revision not to exceed seventy five per cent in
respect of residential buildings
10. Enhancement on revision not to exceed one hundred and one
hundred and fifty per cent in respect of non-residential buildings
which are more than twenty five years old and less than twenty
five years old respectively
HYDERABAD MUNICIPAL CORPORATIONS (ASSESSMENT OF
PROPERTY TAX) RULES, 1990
In exercise of the powers conferred by sub-section (1) of Section
585 read with Clause (a) of sub-section (1) of Section 212 of the
Hyderabad Municipal Corporations Act, 1955, the Governor of
Andhra Pradesh Hereby makes the following rules relating to
assessment of property taxes.
1. Short title :-
The rules may be called the Hyderabad Municipal Corporations
(Assessment of Property Tax) Rules, 1990.
2. Definitions :-
In these rules.
(i) 'Act' means the Hyderabad Municipal Corporation Act, 1955;
(ii) 'Form' means a form appended to these rules;
(iii) 'Zone' means, the area as notified in Form 'A' ;
(iv) 'Plinth area of the building' means, the area arrived at by
multiplying the length of the building with the breadth as measured
outside the basement level;
(v) 'Total plinth area of the building' includes the plinth area of
cellars, ground floor and all the floors above the ground floor of a
building;
(vi) 'Houses constructed for urban poor' means Houses constructed
through agencies of State Government under Weaker Section
housing Scheme;
(vii) 'Multi-storied building' means a building with more than
ground and three floors; and
(vii) 'Rent component of Cost of living Index' means Rent
component of cost of living index as notified by the Director of
Economics and Statistics from time to time.
3. Annual Rental Value :-
(1) The annual rental value of Lands and Buildings shall be deemed
to be the gross annual rent at which they may reasonably be
expected to be let from month to month or from year to year with
reference to its location, type of construction, plinth area, age of
the building, nature of use to which it is put and such other criteria
as may be specified.
(2) The Commissioner, shall gather the information relating to the
prevailing rental value as specified in Rule 4 to 6 so as to arrive at
the rate of rent per month or per year per square meter of plinth
area [x x x], [and then issue a draft notification in a daily
newspaper having circulation in the district and in the District
Gazette calling for objections and suggestions from the public so as
to read the Commissioner within 15 days from the date of
publication of the draft notification, regarding the Division of the
Corporation into Zones and monthly or yearly rental values per
square metre of plinth area in each Zone.] The Commissioner
should consider the objections and suggestions if any, received in
response to the said notification and revise the Zones and the
monthly or yearly rents where ever necessary. He shall place the
proposals before the Committee constituted by the Government for
its final recommendation. On the basis of the recommendations of
the Committee, the Commissioner shall issue a final notification in
Form-A and publish it in a local newspaper having circulation in the
District and in the District Gazette for information of the public.
4. Division of Municipal Corporation to Zones :-
The entire Municipal Corporation area shall be divided into
convenient territorial zones for the purpose of assessment of taxes
based on the following factors, namely
(a) Civic amenities like water supply, street lighting, roads and
drains;
(b) Markets and shopping centres;
(c) Educational Institutions;
(d) Banks, Postal Services, Public Offices;
(e) Medical Institutions;
(f) Factories and Industries; and
(g) Such other relevant factors.
5. Classification of buildings :-
A ft er the division of the Corporation into territorial zones, the
building situated in each zone shall be classified as follows based on
its nature of construction;
(a) RCC posh buildings : RCC buidings with superior quality wood,
better type of flooring and sanitary fittings and attached
bathrooms;
(b) RCC ordinary buildings: RCC buildings with ordinary type of
wood, ordinary flooring and sanitary fittings;
(c) Madras terraced or Jack arch roofed or tone slabs or slates
roofed buildings;
(d) Mangalore tiled roofed or Asbestos roofed or G.I. roofed
buildings;
(e) Country tiled buildings;
(f) Huts.
6. Nature of use of the Buildings :-
A f t e r classification of the buildings based on the type of
construction they shall be further classifed into the following
categories taking into consideration the nature of use of the
buildings:
(a) Residential;
(b) Shops, shopping complexes;
(c) Public use, i.e., office complexes, Public and Private offices
Hospitals and Nursing Homes, Banks, Educational Institutions;
(d) Commercial purposes, i.e., Hotels, Lodges, Restaurants,
Godowns and other business Establishments;
(e) Industrial purposes i.e., Factories, Mills, Workshops and other
industries;
(f) Cinema theatres or Places of Public Entertainment.
7. Fixation of monthly or yearly rent :-
(1) All buildings located in a zone shall be classified based on types
of construction and nature of use, 36 categories of buildings can be
identified in each zone based on the above criteria. The
Commissioner shall gather the information relating to the prevailing
rental value of the buildings of various categories in a zone and
arrive at average monthly or yearly rent fixable for each category of
building per sq. mt. of plinth area.
[(2) The Commissioner shall then provisionally fix monthly or yearly
rent for each category in a Zone per square metre of plinth are a
and notify the rate of monthly or yearly rental so fixed in Form-A
for adopting the said rates for fixation of monthly or yearly rental of
the buildings in a zone and publish the same in the District Gazette
and in a local newspaper having circulation in the district calling for
objections or suggestions from the Public for such adoption
regarding the division of Municipality into Zones. The notification
shall contain the monthly or yearly rental value of the buildings in a
Zone together with the localities/areas with particulars of door
numbers included in the Zone. The objections or suggestions, if
any, on the said notification shall have to be sent to the
Commissioner within 15 days from the date of its publication. The
Commissioner shall consider the objections and suggestions, if any,
received in response to the said notification and revise the Zones
and the monthly or yearly rental values wherever necessary. He
shall then place all the proposals before the District Level Advisory
Committee constituted by the Government for its final
recommendations. Thereupon the Commissioner shall publish a final
notification in Form-A in the District Gazette and Local newspaper
having circulation in the District for information of the public.
(3) The Commissioner then shall fix the monthly or yearly rent for
each category in a zone per square metre of plinth area and notify
the rate of monthly or yearly rent so fixed in Form A' for adopting
the said rates fixation of monthly or yearly rental value of buildings
in a zone and for information of the public. The commissioner shall
issue a notification in Form 'A' furnishing the localities, areas
included in the zone and particulars of door numbers included in
the zone. The notification in Form 'A' shall be published in local
newspapers having circulation in the area for information of the
public.
(4) The Commissioner shall obtain information of all buildings in
respect of plinth area, type of construction, age of building, nature
of use and fix monthly or yearly rental value as per the rate of
monthly rents notified for each category of a building in a zone.
The property tax assessment list of buildings shall be prepared in
Form 'B'.
(5) The rates of monthly or yearly rents for each category of
building in a zone shall be revised once in 5 years taking into
consideration the rent component of cost of living index prevailing
at the time of preparation of new assessment book. In respect of
value of the lands on which buildings constructed for the purposes
o f choultries, hotels, lodges and cinema theatres whose value
increases and the income on the property does not increase, the
average rental value shall be fixed with reference to the income of
the property.
(6) In the case of items wherein varying rates are provided, the
Municipal Corporation shall adopt the rate found suitable for the
particular municipal area after taking the local conditions into
account. The Commissioner may also increase the rates so adopted
by the Municipal Corporation by not exceeding 10% over the rates
aforesaid for superior quality of better type of flooring and fine
plastering depending upon the workmanship and cost involved.
Where the entire roof is not of the same description appropriate
rates shall be adopted for the different types of roof for arriving at
the total cost of erection. The rate of cost per square metre plinth
area shall be determined in consultation with the concerned Local
Engineer belonging to Roads and Buildings Department in
consonance with the price levels prevailing at the time of such
revision.
(7) In the case of buildings which are partly occupied by the owner
and partly let out on rent, property tax shall be levied as per Rules
6 and 3 on owner occupied portions and rented portions
respectively.
(8) For the purpose of assessing the vacant land, the estimated
capital value of the land shall be the market value fixed by
Registration Department for the purpose of registration.
8. . :-
Any tax lawfully levied by or on behalf of the Corporation at the
commencement of these rules shall notwithstanding any change in
t h e method or manner of assessment under these rules, be
continued till assessment under these rules is made.]
9. Enhancement on revision not to exceed seventy five per
cent in respect of residential buildings :-
6 . Notwithstanding anything contained in these rules, where the
increase on account of revision of property tax assessments exceed
75% over the existing tax as on 31st March, 2002 in respect of
residential buildings in the general revision of property tax
assessments which has been given effect to from the 1st April,
2002, the increase shall be restricted to 75% of the existing tax in
respect of residential buildings.]
10. Enhancement on revision not to exceed one hundred
and one hundred and fifty per cent in respect of non-
residential buildings which are more than twenty five years
old and less than twenty five years old respectively :-
Notwithstanding anything contained in these rules, where the
increase on account of revision of property tax assessment exceeds
100 %and 150% over the existing tax as on 31st March, 2002 in
respect of non-residential buildings which are more than twenty
five years old and less than twenty five years old respectively in the
general revision of property tax assessment which has been given
effect to from the 1st April, 2002, and the increase shall be
restricted to 100% and 150% of the existing tax in respect of non-
residential buildings which are more than twenty five years old and
less than twenty five years old respectively.]