Property Tax Taxonomy
Complete taxonomy for Property Tax applications
This section outlines the key entities, properties and major categories associated with the Property Tax governance component. It summarizes their categorizations and sub-categorizations and values. The categorizations primarily establish hierarchical relationships that can be established and as a whole yield taxonomies around Property Tax.
The illustration above offers a consolidated view of the key components and entities defining the Property Tax system.
While building the knowledge models for Property Tax systems, it is imperative to consider entities that are interlinked with Property Tax. Property Tax is a type of Revenue charged against a property. Collections operationalize the Revenue mobilization within a ULB. Hence taxonomy for Property Tax cannot be built in a silo and needs to be accompanied by entities like Property, Revenue and Collections.
Property Entity Details
Key terms and Definitions
Appurtenant Area: Anything attached to a piece of land or building such that it becomes a part of that property, and is passed on to a new owner when the property is sold. It may be something tangible like a garage, septic system, water tank, or something abstract such as an easement or right of way.
Address: The address of the property provides the particulars of the place as per the administrative boundaries or norms defined by the local governing body.
Geo Location: Geolocation is the identification or estimation of the real-world geographic location of the property. This refers to the latitude and longitude coordinates of a particular location where the property is located.
Digital Door Number: Property Numbers are defined using scientific methods and often assigned with QR codes for traceability and usability.
Capital Value System: The market value of the property is the basis of estimating the taxes to be paid. This market value is determined by the government and revised annually, based on the ward in which the property is located.
Unit Area Value System: Under this system, the tax is levied on the per-unit price of the carpet area or the built-up area of the property. Municipalities like New Delhi, Bangalore, Kolkata follow this method.
Annual Rent Value: It is the amount of the property which might be let out on a yearly basis. In the case of self-occupied property used for staying by the owner, then the value is zero. In a situation where the owner is neither staying nor letting it out then also, the value is zero. The gross annual rent of the property is fixed by the municipal body which is generally higher than the actual rent received or expected rent. The municipality of Chennai and Hyderabad use this method
Payment gateway is a trusted financial intermediary which facilitates secure digital fund transfer between parties involved and keeps them informed on the status of transactions throughout the lifecycle of transactions.