Panchayat:Repo18/Law Manual Page0249

202. Basic tax grant.- (1) The Government shall pay annually, as recommended by the Finance Commission, to each Panchayat at the village level in the State a grant, which shall be equal as nearly as may be 47[three by eight], of the amount of basic tax collected by the Government in the last preceding year from that Panchayat area.

(2) The Government may, after considering the area, population, available financial resources and the requirement for development etc., of the Village Panchayats and the expense for administration of Panchayats, also provide an equal amount 48[as nearly as may be three by eighth, that may be prescribed by Government in proportion to the balance amount already collected by Government as basic tax from the entire land of the State for the preceding year, as grant for the Village Panchayats of the State.]

[(3) The Government shall, for every year provide, as nearly as may be equal to three by tenth of the amount of basic tax as collected from the District Panchayat area in the just previous year, as grant for the Block Panchayats of the Districts;

(4) The Government shall, for every year, provide to every District Panchayat an amount as nearly as may be one by fifth of the basic tax collected from the concerned District Panchayat area for the just previous year, as grant.]

203. Property Tax.- (1) Any Village Panchayat shall in accordance with the provisions of this Act and the rules as may be prescribed, levy property tax on every building (including the land appurtenant thereto) situated within the area of the respective Village Panchayat and not exempted under the provisions of this Act.

(2) (a) For the purpose of levying property tax, the Government shall, by notification, fix the minimum and maximum limits of rates of basic property tax applicable to one square meter plinth area of the following categories of building in accordance with the use and the date on which they shall come into force, namely:

(i) used for residential purpose;
(ii) used for industrial purpose;
(iii) used for Schools and Hospitals;
(iv) used for amusement parks, mobile telephone tower etc.;
(v) used for commercial purpose; (vi) used for other purposes;
(vii) Any other category of buildings notified by the Government.

(b) The Government may, by notification, fix the sub-categories of each category of building from (i) to (vii) above and the minimum and the maximum limits of rates of basic property tax applicable to them.