The Bruhat Bengaluru Mahanagara Palike (BBMP) on Thursday proposed that regardless of zonal re-classification of property, the increase in property tax will be capped at a maximum of 20 per cent for residential and 25 per cent for commercial properties.
The proposal will be tabled in the BBMP council on Friday.
This proposal has been made in the face of several complaints as some residents have seen even a 100 per cent increase in tax after the zonal reclassification earlier this year. However, this move has created confusion among residents, many of whom have already paid the increased tax.
BBMP officials were quick to clarify that such property owners would get their extra money set off against the tax to be paid the next year. This new rule will be in place for three years.
“There are some areas where, because of the revision in tax rates and zonal reclassification some people are forced to pay close to 70 per cent more tax. This is despite the fact that we have made sure that the tax because of zonal reclassification will not go up more than one notch,” said Mayor B.N. Manjunath Reddy.
Explaining how exactly the process would work, the new BBMP Commissioner Manjunath Prasad said: “If I was paying Rs. 1,000 as tax in Zone E, and now my property has moved to Zone D, then my increased tax will be Rs. 1,200 only. This is even if the value of my land has changed and tax calculated has increased by about 60 per cent.”
Taxation and Finance Committee chairman M. Shivaraju revealed that close to two lakh people had paid their property tax so far. “We collected around Rs. 2,000 crore in property tax last year, and this year’s target is around Rs. 2,500 crore,” he said.
FAQs
What does the proposal say?
There will be a cap on the increase of tax for residential and commercial property at 20 per cent and 25 per cent respectively.
How is it different from the earlier tax increase?
Earlier, because of the guidance value of property increasing, zonal classifications for payment of property tax had changed, and some people are forced to pay close to 70 per cent more in tax.
What if I have already paid more than the 20 or 25 per cent increase in property tax?
The extra amount will be set off on the taxes you need to pay next year.
When is zonal reclassification and tax revision supposed to be done by the BMMP?
According to the Karnataka Municipal Corporation Act 1976, both have to be done once every three years.
How do I find out what my zone classification is?
At the time of paying the tax online, when you select your area, your zone will automatically crop up.
What about the rebate?
The 5 per cent rebate for citizens paying the tax by April 30 will be extended till May 31.
