Kasaragod homeowners face cess demands for houses built 20 years ago

Kasaragod: Many homeowners in the district are receiving cess notices for houses built over two decades ago, triggering widespread concern.

In one such case, a houseowner in Madhur panchayat recently received a notice seeking cess for a house constructed 23 years ago. Under the Building and Other Construction Workers' Welfare Act, 1996, owners are required to remit one per cent of the total construction cost as cess. The notice, issued by the Assistant Labour Officer in Kasaragod, directed the owner to remit ₹17,765 as cess, along with a one per cent service charge of ₹178.

For the house, which has a plinth area of 190 square metres, the government initially assessed the construction cost at ₹17,76,500. After the owner filed a complaint, the estimate was revised to ₹10,42,500, bringing down the cess to ₹10,425. A one per cent service charge of ₹104 was also required.

Many building owners say the delayed notices have pushed them into financial distress, with some mortgaging their homes or taking loans to clear the dues. Although payment in instalments is permitted, several find the burden difficult to bear. Those receiving notices suddenly are often left scrambling for clarity. Many allege that the government's estimated construction costs far exceed their actual expenditure.

There are also complaints that cess has been calculated using present-day construction cost estimates even for houses built two decades ago. In such cases, authorities have asked owners to produce supporting documents from local bodies.

Officials maintain that notices are being issued after verifying building tax records available with village offices and local self-government institutions. At the same time, there are complaints about a shortage of staff to carry out inspections and follow-up action related to cess collection.