Water tax is the charge a landowner pays when his or her land receives water from a Government source of irrigation. In Andhra Pradesh, it is governed by the A.P. Water Tax Act, 1988 (Act No. 11 of 1988) and the A.P. Water Tax Rules, 1990 (G.O.Ms.No. 454, Revenue). This guide explains who pays, how much, how the demand list is prepared, how to object or appeal, and how the tax is recovered, in plain language.
Index: Jump to a Section
- Overview of the Water Tax Act, 1988
- Key Definitions Every Landowner Should Know
- Levy of Water Tax (Section 3)
- Category-I and Category-II Sources
- Water Tax Rates (The Schedule)
- Notification of Irrigation Sources and Ayacut (Section 4)
- Assessment and Publication of the Demand List (Section 5)
- How to Object to the List
- Appeal to the Revenue Divisional Officer (Section 6)
- Revision by the District Collector (Section 9)
- Payment and Collection (Rule 7)
- Arrears and Recovery (Section 8)
- Exemption, Court Bar and Other Provisions
- Forms 1, 2 and 3 Explained
- Quick Reference: Time Limits
- Frequently Asked Questions
1. Overview of the Water Tax Act, 1988
The A.P. Water Tax Act was passed to bring rationalisation to the levy and collection of water tax in the State. The Governor gave assent on 19 April 1988, and the Act was first published in the Andhra Pradesh Gazette (Part IV-B, Extraordinary) on 20 April 1988.
2. Key Definitions Every Landowner Should Know
Section 2 of the Act defines the terms used throughout. The most important ones are below.
| Term | Meaning in simple words |
|---|---|
| Fasli year | A period of twelve months starting on 1 July of every year. |
| Owner | Every person who holds land directly from the Government under a patta, or whose name is registered in the land revenue accounts as pattadar, occupant or khatadar, and who is liable to pay land revenue. |
| Dry land | Land registered as dry (manavari, asmantari, baghat or garden land, special rate dry land) or land classified or localised as wet, irrigated dry, or dry but irrigated. |
| Mandal Revenue Officer (MRO) | The MRO in whose jurisdiction the land is situated, including any Revenue officer empowered by the Government. |
| Revenue Divisional Officer (RDO) | The RDO in whose jurisdiction the land is situated, including any Revenue officer empowered by the Government. |
| Water tax | The tax levied under Section 3 of the Act. |
| Prescribed | Prescribed by rules made by the Government under this Act. |
3. Levy of Water Tax (Section 3)
Section 3 empowers the Government to levy and collect water tax for each fasli year on every land receiving water for irrigation and aquaculture purposes from any Government source of irrigation notified under Section 4. The tax is charged at the rates given in the Schedule.
Aquaculture added in 1997
Originally the Act covered irrigation only. Act 13 of 1997 added aquaculture, defined as culturing of prawn, fish or any other aquatic life in captivity, inside tanks, ponds, pens or other enclosures that use water from a Government source.
All lands are treated as "dry"
For the purpose of the levy, all lands, whether classified as wet, dry, irrigated wet or irrigated dry, are regarded as dry. The crop actually raised (see the Schedule below) then decides the rate.
4. Category-I and Category-II Sources
The rate depends on the kind of Government source supplying the water.
| Category | Which sources? |
|---|---|
| Category-I | All Government sources classified as major and medium irrigation projects. |
| Category-II | All other Government sources that supply water for a period of not less than four months in a year (this four-month test was inserted in 1997). |
5. Water Tax Rates (The Schedule)
The Schedule, as substituted by Act 13 of 1997, fixes the rates per acre:
| Sl. No. | Nature of crop | Category-I (Rs.) | Category-II (Rs.) |
|---|---|---|---|
| 1 | First or single wet crop | 200.00 | 100.00 |
| 2 | Second and third wet crop | 150.00 | 100.00 |
| 3 | First crop irrigated dry | 100.00 | 60.00 |
| 4 | Second and third crop irrigated dry | 100.00 | 60.00 |
| 5 | Dufasal crop in fasli year | 350.00 | 350.00 |
| 6 | Aquaculture per year | 500.00 | 500.00 |
6. Notification of Irrigation Sources and Ayacut (Section 4)
Water tax can be levied only on land under a notified source. Section 4 provides:
- The District Collector notifies, from time to time, the Government sources of irrigation and the lands under the commandable ayacut lying in his district.
- If a source and its ayacut lie in more than one district, the notification is issued by the Commissioner of Land Revenue.
How the notification is made (Rule 3)
- The Collector's notification is in Form 1; the Commissioner's is in Form 2.
- It is published on or before 1 July of every five years, or earlier whenever considered necessary, in the A.P. Gazette / District Gazette.
- It is also displayed at the village chavadi (or another conspicuous place) and on the notice boards of the MRO, RDO and District Collector offices.
- When a new source starts supplying water, or additional ayacut is included under a Category-I or II source, a fresh notification is published in continuation of the earlier one.
7. Assessment and Publication of the Demand List (Section 5)
The tax payable by each owner is ordinarily determined for each fasli year and assessed by the Mandal Revenue Officer.
- List prepared: After the Section 4 notification, the MRO prepares a list of owners in each village, the extent of land each holds under the ayacut, and the water tax payable.
- List published (Rule 4): The list is in Form 3 and is published before 1 July of every year (or when changes occur), by:
- affixing it at the village chavadi or a conspicuous place in the village;
- affixing it on the Gram Panchayat notice board;
- affixing it on the MRO's office notice board;
- announcing it in the village by beat of tom-tom, with intimation sent by the MRO to the RDO and the District Collector by registered post (acknowledgment due);
- furnishing DCB particulars of land revenue and details of dues, including arrears (baki-jabitha), to the Water Users' Associations.
- Deemed notice: Once published, every owner liable to pay is deemed to have had notice of the tax. So even if you did not personally see the list, the objection period still runs.
8. How to Object to the List
If you disagree with the tax shown against your name (for example, wrong extent, wrong category, land not under the ayacut), you can object before the MRO.
If no objection is received within the period, the tax in the list becomes final, but still subject to appeal and revision.
9. Appeal to the Revenue Divisional Officer (Section 6)
There are two appeal routes, both to the RDO, who may confirm, modify or annul the tax or order appealed against.
| Who can appeal | Time limit |
|---|---|
| A person who did not object earlier, against the tax in the list that has become final | 30 days from the date the tax became final |
| A person aggrieved by an order of the MRO | 30 days from the date of service of the order on him |
Appeal procedure (Rule 5)
- The appeal must be in writing, state the grounds and be accompanied by a copy of the order appealed against.
- No court fee is payable on the appeal petition.
- If the RDO feels further enquiry is needed, he may hold it on such date and in such manner as he specifies.
How orders are served (Rule 6)
An order is served by delivering it to the person concerned, or in his absence to his agent or an adult family member. Where that is not practicable, it can be sent by recorded delivery to the last known residence. In that case, service is deemed to take place on the date the order is received in the usual course of post. Since appeal time starts from service, keep proof of the date you received the order.
10. Revision by the District Collector (Section 9)
The District Collector has revisional powers. He may call for and examine the records of any order or proceeding of the MRO or RDO to satisfy himself about the legality or propriety of the order or the regularity of the proceeding, and pass such order as he thinks fit.
- He can act suo motu (on his own) at any time, or on an application made within 60 days from the date of communication of the order.
- He cannot pass an order that adversely affects any person unless that person has had an opportunity of making a representation.
11. Payment and Collection (Rule 7)
- Who collects: The Village Assistant collects the water tax from the owner, under the general supervision of the MRO and other Revenue officers.
- What is collected: The tax levied in the list, or the tax as revised by the MRO (on objection) or by the RDO (on appeal).
- When: In the same fasli year for which it is due.
- First charge on land: The water tax payable by the owner is the first charge upon his interest in the land.
12. Arrears and Recovery (Section 8)
Water tax is treated as public revenue due upon the land. This means it can be recovered like land revenue arrears under the A.P. Revenue Recovery Act, 1864.
Because the tax is a first charge on the land, unpaid dues can follow the land. Owners should clear water tax along with other land revenue dues to avoid recovery proceedings.
13. Exemption, Court Bar and Other Provisions
| Section | What it says |
|---|---|
| Sec 10: Exemption | If enforcement of the Act would cause hardship in any case, the Government may, by notification giving its reasons, exempt such cases permanently or for a specified period, on such conditions as it thinks fit. |
| Sec 11: Bar of jurisdiction | The rates of water tax levied under the Act cannot be questioned in any court of law. Note that this protects the rates; individual assessment disputes go through objection, appeal and revision. |
| Sec 12: Overriding effect | The Act prevails over any inconsistent law, custom, usage, contract, judgment, decree or order. |
| Sec 13: Rules | The Government may make rules by notification. Rules are laid before the Legislative Assembly for a total of fourteen days. |
| Sec 14: Schedule | The Government may amend the Schedule by notification, followed by a Bill in the Assembly. |
| Sec 15: Repeal | Earlier Acts, rules, notifications and orders are repealed to the extent they repeat or conflict with this Act. |
14. Forms 1, 2 and 3 Explained
| Form | Issued by | Contents |
|---|---|---|
| Form 1 | District Collector (Rule 3(i)) | List of Government sources of irrigation and the lands under their commandable ayacut: source name, mandal, village, survey number, extent in acres, remarks. |
| Form 2 | Commissioner of Land Revenue (Rule 3(ii)) | Same details for sources spread over more than one district, with the district name added. |
| Form 3 | Mandal Revenue Officer (Rule 4(i)) | Village-wise demand list: Category (I or II), name of source, patta/khata/occupant number, name of pattadar/occupant, survey number, extent in acres and water tax levied. |
15. Quick Reference: Time Limits
| Action | Authority | Time limit |
|---|---|---|
| Publish Section 4 notification | Collector / Commissioner | On or before 1 July every five years, or as needed |
| Publish Form 3 demand list | MRO | Before 1 July every year, or when changes occur |
| Objection to the list | MRO | 30 days from publication |
| Disposal of objection | MRO | Same day as the summary enquiry |
| Appeal (no earlier objection) | RDO | 30 days from the date the tax became final |
| Appeal against MRO's order | RDO | 30 days from service of the order |
| Revision application | District Collector | 60 days from communication of the order (or suo motu at any time) |
| Collection of tax | Village Assistant | Within the same fasli year |
| Tax treated as arrear | Revenue Recovery Act, 1864 | If uncollected after 30 June |
16. Frequently Asked Questions (FAQs)
Q1. What is the A.P. Water Tax Act, 1988?
It is the State law (Act No. 11 of 1988) that allows the Government to levy and collect water tax on land receiving water for irrigation and aquaculture from notified Government sources, at the rates in its Schedule.
Q2. Who has to pay water tax?
The "owner" of the land under the commandable ayacut of a notified Government source. This includes a pattadar, occupant or khatadar who is liable to pay land revenue.
Q3. How is water tax calculated?
It is charged per acre, per fasli year, depending on (a) whether the source is Category-I or Category-II and (b) the crop raised (wet, irrigated dry, dufasal) or aquaculture. For example, a single wet crop costs Rs. 200 per acre under Category-I and Rs. 100 under Category-II.
Q4. What is the difference between Category-I and Category-II?
Category-I covers major and medium irrigation projects. Category-II covers other Government sources that supply water for not less than four months in a year.
Q5. Is water tax charged on aquaculture ponds?
Yes. Since the 1997 amendment, land receiving water from a Government source for aquaculture (prawn, fish or other aquatic life in tanks, ponds, pens or enclosures) is taxed at Rs. 500 per year.
Q6. What is a fasli year?
A period of twelve months beginning on 1 July of every year. Water tax is levied for each fasli year.
Q7. Where can I see the list of persons liable to pay water tax?
The MRO publishes the list (Form 3) before 1 July every year at the village chavadi, the Gram Panchayat notice board and the MRO's office notice board, and announces it by tom-tom in the village.
Q8. What if I did not see the list? Can I still object?
The Act says that once the list is published, every owner is deemed to have had notice of the tax. The objection period is 30 days from publication. If you missed it, you may still appeal to the RDO within 30 days from the date the tax became final, and the District Collector can entertain a revision application. Act promptly.
Q9. Do I have to pay a court fee to object or appeal?
No. Under the Rules, neither the objection application to the MRO nor the appeal to the RDO is liable to fee under the A.P. Court Fees and Suits Valuation Act, 1956.
Q10. How long does the MRO take to decide my objection?
The Rules direct the MRO to give notice, hold a summary enquiry and dispose of the application on the same day of the enquiry, then serve a copy of the order on you or your agent.
Q11. Who hears an appeal against the MRO's order?
The Revenue Divisional Officer (RDO), within 30 days from service of the order. The RDO may confirm, modify or annul it.
Q12. Can the District Collector review the RDO's or MRO's order?
Yes. Under Section 9, the Collector may revise any order or proceeding of the MRO or RDO, on his own or on an application within 60 days. He must first give the affected person a chance to make a representation before passing an adverse order.
Q13. Who collects the water tax?
The Village Assistant, under the supervision of the MRO and other Revenue officers, in the same fasli year for which it is due.
Q14. What happens if I do not pay water tax?
Tax uncollected after 30 June is treated as an arrear and public revenue due upon the land. It can be recovered under the A.P. Revenue Recovery Act, 1864. The tax is also the first charge on your interest in the land.
Q15. Can I challenge the rate of water tax in court?
Section 11 says the rates levied under the Act cannot be questioned in any court of law. Disputes about your individual assessment (area, category, source) must go through objection, appeal and revision under the Act.
Q16. Can the Government waive water tax?
Under Section 10, if enforcement would cause hardship, the Government may by notification, giving its reasons, exempt cases permanently or for a specified period, subject to conditions.
Q17. Who notifies the irrigation sources and the ayacut?
The District Collector (Form 1). If the source and ayacut lie in more than one district, the Commissioner of Land Revenue does so (Form 2).
Q18. Is this guide the latest law?
This guide is based on the Act as amended up to Act 13 of 1997 and the Rules with the 1998 amendment (G.O.Ms.No. 175). Rates, procedures or administrative details may have changed since, so please confirm with your Mandal Revenue Office or the latest Government orders.
