Some people argue that while assessing the value of building the value of land should not be considered. What is the answer to them?
The property tax refers to the tax on the land and building as enumerated in the Constitution. The land means the land in which the building is constructed upon and the permanent structures annexed thereto. It is not correct to consider only construction cost. For eg: Rental value or selling price of 2 similar type of houses, one constructed near the Devaraj market and another in the plateau of Chamundi Hills in Mysore cannot be same. It is found that while assessing the rental value, the land value is also taken into consideration. Similarly the rent or selling price of two similar types of houses one situated in Hampanakatte in Mangalore and another in Padavu cannot be same. While assessing the building value, it is justifiable to take into account the value of the built-up area.
