Introduction: Understanding CDMA Nellore Property Tax
Property tax is one of the most important recurring obligations for every property owner in Nellore Municipal Corporation, Andhra Pradesh. It is the primary source of revenue for the local urban body and directly funds civic amenities such as roads, drainage, street lighting, sanitation, and other basic infrastructure within the city.
In Andhra Pradesh, property tax is administered through urban local bodies (ULBs) and coordinated under the Commissioner & Director of Municipal Administration (CDMA) framework, with dedicated online portals for each ULB, including Nellore.
What Is CDMA Nellore Property Tax?
CDMA Nellore property tax refers to the tax levied on residential, commercial and other types of properties that fall within the jurisdiction of the Nellore Municipal Corporation, under the administrative umbrella of the CDMA, Government of Andhra Pradesh.
The state has moved to a capital value (CV) based property tax regime where the tax is calculated as a percentage of the market (capital) value of the property, replacing the earlier Annual Rental Value (ARV) system.
Key features
- Tax is mandatory for all properties within municipal limits, including independent houses, apartments, commercial complexes and vacant land, subject to certain exemptions.
- The tax is assessed annually but is usually payable in specified instalments during the financial year.
- Rates and slabs are notified by the state government and implemented by the local ULB (Nellore Municipal Corporation, in this case).
Legal and Administrative Framework
Property tax in Nellore is governed broadly by the Andhra Pradesh Municipal laws and rules issued by the Municipal Administration & Urban Development Department and implemented through CDMA and the concerned Municipal Corporation.
The CDMA platform centralises several citizen services, including property tax, water charges, trade licenses and building permissions, with separate online portals for each ULB like Nellore.
Role of Nellore Municipal Corporation
- Assessment of properties and maintenance of the property tax database.
- Determination and periodic revision of property details, including capital values, category, usage, and other parameters.
- Collection of tax, issuance of demand notices and enforcement, including penalties or interest for delayed payment.
Evolution of Property Tax in Andhra Pradesh
Historically, Andhra Pradesh followed the ARV-based property tax system where tax was levied as a percentage of the annual rental value of the property.
Under that regime, residential properties with ARV up to Rs 600 were exempt, and higher ARV brackets attracted progressively higher rates ranging from 17% up to 30%.
With reforms in municipal finance and efforts to align tax with real market values, the state has transitioned to a capital value-based system, where the tax is calculated as a percentage of the property’s capital value (land plus building value), with different rate ranges for residential and non-residential properties.
How CDMA Nellore Calculates Property Tax
Capital value based system
Under the revised system, property tax rates are applied to the capital value of the property. Capital value broadly means the market value of the land plus the cost/value of the building or structure as recognised for property tax purposes.
- For residential properties, the rate generally ranges from about 0.10% to 0.50% of the capital value.
- For non‑residential/commercial properties, the rate range is higher, typically from about 0.2% to 2% of the capital value.
Exact rates, slabs and category-wise details are notified for each ULB and can be checked through the official portals or directly with Nellore Municipal Corporation.
Factors influencing property tax in Nellore
Several parameters are used when computing property tax for a particular property:
- Property type: Different treatment for vacant land, built-up houses, flats, shops, offices, industrial premises and institutions.
- Usage: Residential, commercial, mixed-use, industrial or institutional usage impacts the applicable rate.
- Location and zone: Properties in prime urban localities generally attract higher valuation and tax rates than those in peripheral or less developed areas.
- Age of building: Older structures may get a lower calculated value compared to newly constructed ones, depending on notification and depreciation norms.
- Type and quality of construction: RCC framed structures usually attract higher values compared to simple brick/thatched/tiled constructions.
- Plot area and built-up area: Larger properties naturally bear higher tax, as capital value increases with area.
Online Services for CDMA Nellore Property Tax
The state has provided a centralised CDMA system and dedicated portals for each ULB, where citizens can access property tax-related services.
Nellore CDMA portal
The official Nellore Municipal Corporation online portal, under CDMA, provides links to key property tax services including:
- Property Tax
- Know Your Dues
- Self Assessment
- Revision Petition
- Mutation
- Vacancy Remission
- Application Status
These services allow taxpayers to view existing assessments, estimate tax, make changes, and also pay dues online.
State-level dashboards and utilities
Andhra Pradesh also maintains a municipal revenue dashboard that consolidates property tax and other municipal revenue data across ULBs for transparency and monitoring. This tracks total collections, including property tax receipts across the state.
Step-by-Step: How to Pay CDMA Nellore Property Tax Online
Property owners in Nellore can pay their property tax online through the official municipal/CDMA portals or via integrated state service directories.
A typical process is as follows (exact screens may vary):
- Visit the official portal
- Navigate to property tax services
- Enter property details
- View dues
- Confirm and proceed to payment
- Generate receipt
Several third‑party aggregators also provide municipal property tax payment options, but for accuracy and up‑to‑date assessment, the official CDMA/Nellore portals should be your primary reference.
Self‑Assessment of Property Tax in Nellore
Self‑assessment is a key feature on the Nellore ULB portal that allows property owners to estimate and declare their property tax liability, especially after new construction, extension, change of usage or modifications.
When is self‑assessment required?
- Construction of a new property within Nellore Municipal Corporation limits.
- Addition of floors, extension or major structural modification that increases built‑up area.
- Conversion from residential to commercial use (e.g., converting part of the house to a shop or office).
- Change in property ownership or major alterations impacting capital value.
Typical self‑assessment process
- Access the “Self Assessment” feature from the Nellore portal.
- Enter property location details, plot and built‑up area, type of construction, usage, age of building and other required parameters.
- The system applies the prescribed capital value-based rates to estimate the property tax payable.
- Submit the self-assessment form online and proceed to pay the tax as per generated demand.
Thereafter, the municipal authorities may verify the data and take up any rectifications or revisions through their field verification and revision petition process.
Revision Petition, Mutation and Vacancy Remission
In certain circumstances, property owners may require changes in the assessment record or wish to contest or correct the tax demand.
Revision petition
A revision petition is used for seeking changes in property tax assessment, such as correction in area, usage, classification or other data that affects the tax liability.
- Filed when a property owner disagrees with the assessed amount or classification.
- Submitted through the appropriate section on the Nellore ULB portal (“Revision Petition”).
Mutation
Mutation relates to updating ownership or title changes in the municipal property tax records.
- Required when a property is bought, sold, inherited, gifted or transferred in any manner.
- Ensures that tax records correctly show the current owner who is liable for future tax payments.
Vacancy remission
Vacancy remission is a facility where, subject to municipal rules, some concession may be considered if a property remains vacant and not in use for a defined period, generally for non‑residential properties.
Nellore’s online services include a “Vacancy Remission” section, where eligible owners can apply and track the status of such requests.
Impact of Recent Market Value Revisions
The capital value of properties is derived from the underlying land and building values, which in turn are influenced by the official guideline or market values notified by the state.
In Andhra Pradesh, the government has revised land market values, for instance with effect from February 1, 2025, proposing an increase of about 5–10% in many locations. Such revisions, over time, can translate into higher capital values and therefore higher property tax assessments in subsequent cycles.
Property owners in Nellore should track state notifications on land value revisions and any municipal notifications on property tax rate changes, as these directly affect their annual tax burden.
Property Tax Rates: Residential vs Non‑Residential
While the specific detailed rate schedule for Nellore needs to be checked from official notifications, the broad pattern prescribed at the state level gives a clear idea of how residential and non‑residential properties are treated.
Broad rate ranges in Andhra Pradesh
Earlier, under the ARV system, residential properties followed slab‑based tax percentages (e.g., ARV up to Rs 600 exempt, 17% for Rs 601–1200, up to 30% for ARV above Rs 3600).
Factors to Consider Before Buying Property in Nellore (From a Tax Perspective)
Before acquiring a property within Nellore Municipal Corporation limits, it is prudent to evaluate the property tax implications.
Key practical checks:
- Confirm property is duly assessed in municipal records and check existing property tax dues via the “Know Your Dues” feature.
- Review the property type, permitted usage zone and likely capital value band, to estimate future tax outgo.
- Verify whether building approvals and occupancy certificates (where required) have been obtained, as these are linked to correct assessment and municipal compliance.
- Ensure previous owner has cleared all property tax dues up to date of sale, or account for this in sale consideration and documentation.
Penalties and Consequences of Non‑Payment
Property tax is a statutory obligation. Failure to pay on time can attract various consequences under municipal law:
- Interest/penalty on delayed payments: Municipal bodies typically levy interest or penalty on outstanding property tax dues after the due date.
- Accumulation of arrears: Unpaid dues accumulate year after year, increasing the overall liability and making regularisation more expensive.
- Enforcement actions: Municipalities may initiate recovery measures, including disconnection of certain services, attachment of property or restrictions on approvals, depending on rules.
- Issues in transfer or loans: Prospective buyers and lenders generally insist on up‑to‑date property tax receipts, so unpaid tax can delay or complicate sale and mortgage transactions.
Timely online payment through the CDMA/Nellore portals helps avoid these issues and ensures that the city continues to develop using stable municipal revenues.
Using Third‑Party Platforms for Property Tax Payment
Some third‑party payment platforms and apps also facilitate municipal property tax payments by integrating with various corporations. These services typically allow you to select the municipal body, enter your property ID, fetch dues and pay online.
However, not every ULB or service is always available on all aggregators, and coverage can vary across cities and states. For Nellore, the safest approach is to treat the CDMA/Nellore portals as the authoritative source for assessment data, dues and official receipts, using third‑party platforms only where they are clearly linked or officially supported.
Practical Tips for CDMA Nellore Property Owners
- Keep your Property ID/Assessment number handy for all online transactions.
- Register on the municipal or CDMA portal (if registration facility is offered) to track multiple properties and payment history easily.
- Use “Know Your Dues” regularly to ensure there are no unexpected arrears or mis‑postings in your account.
- After any construction, extension, or change of use, promptly file a self‑assessment and/or revision petition instead of waiting for an inspection or demand notice.
- Preserve digital receipts and, where needed, print copies for bank loans, succession documentation and future reference.
Conclusion: Why Staying Compliant with CDMA Nellore Property Tax Matters
CDMA Nellore property tax is more than just a yearly payment obligation — it is a direct contribution by property owners to the city’s development and service upkeep.
By understanding how capital‑value‑based tax works in Andhra Pradesh, using the Nellore Municipal Corporation’s online services effectively, and keeping assessments accurate and up‑to‑date, taxpayers can minimise disputes, avoid penalties and support better urban infrastructure for all residents.
FCA, CWM (AAFM-US), CBV, CIFRS, R-ID, B.COM (H), RV* (IBBI)
Practising Chartered Accountant in Delhi NCR Since 2011. He can be contacted at ankitgulgulia@gmail.com or +91-9811653975.