Section 87 in Andhra Pradesh Municipalities Act, 1965
87. Method of assessment of property tax.
(1)Every building shall be assessed together with its site and other adjacent premises occupied as an appurtenance thereto unless the owner of the building is a different person from the owner of such site or premises.(2)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 prescribed.(3)Notwithstanding anything in the Andhra Pradesh Buildings (Lease, Rent and Eviction) Control Act, 1960, the gross annual rent at which the lands and buildings might reasonably be expected to be let from month to month or from year to year, shall be determined by the Commissioner, 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 prescribed:Provided that in the case of any Government or railway building or any building or a class of buildings not ordinarily let, the gross annual rent of which cannot in the opinion of the Commissioner be estimated, the annual rental value of the premises shall be deemed to be nine percent of the estimated value of the land and the present cost of erecting the building after deducting a reasonable amount towards depreciation which shall in no case be less than ten percent of such cost.(4)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 let from month to month or from year to year, less a deduction at the rate of ten per cent for buildings upto the age of 25 years and twenty per cent for buildings above the age of 25 years and thirty percent for buildings above the age of 40 years of that portion of such gross annual rent which is attributable to the building apart from their sites and adjacent lands occupied as an appurtenance thereto and the said deduction shall be in lieu of all allowances for repairs or on any other account whatsoever:Provided that a rebate of forty per cent of the annual rental value shall be allowed in respect of the residential buildings occupied by the owner inclusive of the deduction permissible under this sub-section.Provided further that in respect of such municipalities on the sea-shore as may be specified by notification from time to time, a rebate of five per cent of the annual rental value shall be allowed in addition to the rebates allowed under the other provisions of the Act in respect of all the buildings;Explanation. - For the purposes of this section, an area not exceeding three times the plinth area of the building including its site or a vacant land to the extent of one thousand square meters, whichever is less shall be deemed to be adjacent premises occupied as an appurtenant to the building, and assessed to tax in accordance with the provisions of this section, and the area, if any, in excess of the said limit shall be deemed to be land not occupied by or adjacent and appurtenant to such building and the tax shall be levied thereon in accordance with the provisions of sub-section (3) of Section 85 as if it were land to which that sub-section applied.
