Definition of Mixed-Use Buildings

• Mixed-use buildings are properties used for more than one purpose, such as residential and commercial.
  
• Common examples include residential houses with ground-floor shops, or buildings combining offices and apartments.
  
• Municipal authorities recognize them as multi-category properties for taxation.
  
• Each portion of the building is assessed based on its declared and actual usage.
  
• Mixed-use classification affects both valuation and tax rate application.
  

Zonal and Usage-Based Assessment

• Tax is calculated separately for each use—residential, commercial, or industrial.
  
• Location zone (A, B, C, etc.) and street classification impact base rates.
  
• Higher rates apply to commercial areas, and lower ones to residential parts.
  
• The property is divided floor-wise or area-wise depending on usage declaration.
  
• Usage must be declared truthfully to avoid penalties or reassessment.
  

Separate Application of Tax Rates

• Each portion is charged according to the applicable rate for that use.
  
• For example:
  – Residential area × residential tax rate = residential tax.
  – Commercial area × commercial tax rate = commercial tax.
  
• The final payable amount is the sum of both calculations.
  
• Additional charges like cess, sanitation fee, and fire tax are also applied proportionally.
  
• Rebates or exemptions are generally available only on the residential portion.
  

Required Documentation and Inspection

• Owners must submit detailed floor plans showing use division.
  
• A self-assessment form or declaration is required during tax filing.
  
• Municipal officials may conduct a site inspection to verify actual use.
  
• Inconsistent or undeclared usage (e.g., running a shop in a residential zone) may lead to penalties.
  
• Mutation and tax records must reflect the mixed-use nature of the building.
  

Calculation Example (Illustrative)

• Ground floor (commercial) = 800 sq. ft × ₹X (commercial rate).
  
• First floor (residential) = 1200 sq. ft × ₹Y (residential rate).
  
• Total tax = Commercial tax + Residential tax + applicable cess/charges.
  
• If using the unit area method, different unit area values apply per use type.
  
• In the capital value method, land and construction rates differ by usage.