Definition of Age Factor

• The age factor in property tax refers to the adjustment made based on the age of the building.
  
• It is used to account for depreciation in the value of older properties.
  
• This factor helps municipalities apply a fair tax rate by reducing the assessed value as the building ages.
  
• It is typically applied as a percentage deduction from the base value.
  
• The age factor is relevant in systems like Unit Area Value and Capital Value methods.
  

Purpose and Significance

• Ensures older properties are not taxed at the same rate as new constructions.
  
• Reflects wear and tear, outdated amenities, and reduced rental or market value.
  
• Encourages regular updates to municipal records on building condition and age.
  
• Supports equitable taxation across properties of varying vintage.
  
• Promotes fairness in assessment across different zones and localities.
  

How Age Factor Is Applied

• The building’s year of construction is recorded during the initial or revised assessment.
  
• A depreciation percentage is deducted from the standard value based on its age.
  
• For example, a 20-year-old building may get a 20% reduction in assessed value.
  
• Municipal authorities follow a standard age-based depreciation chart.
  
• Different slabs may apply (e.g., 0–5 years: no rebate, 6–20 years: 10–30% rebate, etc.).
  

Limitations and Exceptions

• The age factor applies only to the structure, not the land value.
  
• No additional reduction is usually given after a certain age cap (e.g., 60 years).
  
• Redeveloped, renovated, or structurally modified buildings may lose age-based benefits.
  
• In some cases, incorrect declaration of age may lead to reassessment and penalties.
  
• Some cities may exclude age factor under the annual rental value system.
  

Verification and Documentation

• Owners may need to submit completion certificate or building approval documents.
  
• Field inspectors may physically verify the condition and construction period.
  
• Municipalities may demand evidence during self-assessment or reassessment requests.
  
• Disputes over building age can be resolved through appeals and document review.
  
• Accurate age data helps in claiming rebates and avoiding over-taxation.