The Hindu : Karnataka / Bangalore News : Less tax for houses on outskirts

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Friday, Jan 02, 2009
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Karnataka

Karnataka - Bangalore

Less tax for houses on outskirts

Staff Reporter

Escalators and charged parking will cost owners more

Bangalore: Keeping in mind the existing infrastructure in the 110 villages included to the city during the formation of the Bruhat Bangalore Mahanagara Palike (BBMP), the civic body has proposed a lump sum tax for residential properties and apartments in this area instead of the unit area value-based tax assessment.

As a result, residents of these villages will have a lesser tax burden plus a 24 per cent cess, depending upon the built-up area of the buildings. The lump sum tax will double if the property is rented out.

For this purpose, the BBMP has classified the owner-occupied residential properties in these 110 villages into five, depending on the built-up area (BUA).

The lump sum property tax will be Rs. 100 (plus a 24 per cent cess) for houses with less than 300 sq ft BUA. Similarly, it will be Rs. 200 for BUA between 301 sq ft and 500 sq ft; Rs. 400 for BUA between 501 sq ft and 1,000 sq ft, Rs. 500 for BUA between 1,001 and 1,500 sq ft, and Rs 750 for BUA above 1,500 sq ft.

Flats

Owner-occupied flats in these villages will attract a lump sum tax plus a cess based on the BUA. A flat with BUA of less than 700 sq ft will attract a lump sum tax of Rs. 500 plus cess, BUA between 701 sq ft and 1,000 sq ft will entail Rs 750, BUA between 1,001 sq ft and 1,500 sq ft Rs 1000, and those above 1501 sq ft will have to pay lump sum tax of Rs. 2,000.

Similarly, a lump sum tax of Rs. 80 plus cess per year has been fixed for hutments and all houses declared as slums having a built up area of less than 300 sq ft.

A new category of houses built or allotted for the poor by the Government under any scheme has been created and a separate unit area value (UAV) fixed, depending on the zones.

What is new

In its effort to enhance the tax base, the BBMP has fixed a common separate UAV (Rs 20 per sq ft per month) for non-residential buildings (other than those falling in A zone) with escalators, regardless of whether they are used or house multiplexes. Similar properties having central air conditioning have been classified into three — based on the built-up area. The UAV for multiplexes has been fixed at flat Rs. 20 per sq ft per month.

To generate revenue from buildings exempt fromproperty tax (except places of public worship), a provision has been made to levy service charge at the rate of 25 per cent of the property tax plus a 24 per cent cess by fixing a separate zone-wise UAV.

The BBMP proposed to collect Rs. 100 annually for every two-wheeler parking slot and Rs. 300 for other parking slots from non-residential buildings where parking is charged.

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