Arani Town - Municipal

Chapter - 14 Final Report: Arani Municipality
Given below are the various assumptions forming part of the FOP workings :
14.5.1 Income
a) Property Tax
The population of Arani Municipality is estimated to grow at around 1.40% p.a.
Based on the same Property Tax Revenue are assumed to increase @ 1.20% per
annum. The last revision of Property Tax was carried out on 1-10-98 and it is assumed
that the next revision will be carried out in the current year. It is assumed that there
will be an increase of 15% due to revision in 2008-09 & that revision would be done
@ 15% every 5 years.
It has also been established as per the Survey in 2002 that around 27% of the
properties are unassessed and further 20-25% of the properties are unassessed.
Considering the above, it is assumed that the same shall be set right and together
these shall contribute to increase in property tax revenue by 15% from next year viz.
2009-10 on account of property mapping.
The Property Tax income is divided between Revenue, Water Supply and Education
Fund in the following ratio:
Table 14-6: Ratio of Property tax
Per Annum
General 1.500% )
Scavanging 3.000% ) Revenue & Capital Fund
Lighting 3.000% )
Water Tax 7.500% } Water Supply & Drainage Fund
Drainage - }
Education 2.500% ] Education Fund
Total 17.500%
b) Profession tax
Income from Profession Tax is assumed to increase @ 3% per annum. The Profession
Tax was last revised on 1.10.2003 and the next revision is due in 2008-09. It is
assumed that every revision would contribute to 15% increase
Besides, the profession tax base would be increased by carrying out survey in
20101-11. It is assumed that the survey would increase the profession tax base by
20% in 2010-11.
c) Assigned revenue
Assigned Revenue comprises Entertainment Tax and Surcharge on Stamp Duty. It is
assumed the same shall increase as under :
Duty on Transfer of Property : 5%
Entertainment Tax : 2%
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