By Accommodation Times News Service
Owners of non-residential properties will have to pay 25% more across all zones
You may complain of bad roads and garbage heaps in your neighborhood, but now gets ready to pay more property tax from April 1. The BBMP council on Saturday decided to hike property tax for residential properties by 20% and by 25% for non-residential properties.
As per the revised tariff, owners of individual houses in BBMP’s zone A will have to pay Rs 3 per sqft, while those in B, C, D, E and F will have to pay Rs 2.40, Rs 2.15, Rs 3.80, Rs 1.50 and Rs 1.20 per sqft respectively.
“Most properties fall in A, B and C zones, which are in the heart of the city and are more developed than E and F zones that are the newly added villages,” a BBMP official said.
However, Bengalureans could end up paying much more as the government is likely to hike guidance value from April 1. Property tax is calculated based on the guidance value. BBMP last revised property taxes in 2008 based on 2007 guidance value rates. But the guidance value has been revised thrice since then.
Meanwhile, owners of non-residential properties will have to pay 25% more across all zones. It means malls; educational institutions, hospitals, industries, offices and markets among others in A zone will have to shell out Rs 25 per sqft, while those in B, C, D, E and F zones will have to pay Rs 17.5, Rs 12.5, Rs 10, Rs 7.5 and Rs 3.8 per sqft respectively.
The cash-strapped BBMP is expected to mop up an additional income of at least Rs 600crore annually with the revised hike. According to an earlier proposal, a property in zone would have been categorized along side one in A or B zone and pay 150% more taxes than it does now. With Saturday’s decision, the burden on B to F zones will be less (each lower zone will pay taxes as per its immediate higher zone). On October 18, BBMP proposed a 20% hike in unit area value (UAV) which is an index to calculate property tax for residential properties and 25% for non-residential ones. But it classified the areas based on proximity to centre of the city central business districts into six zones -A to F. This was based on the recent hike in guidance values.
This would have increased the property tax to 150% in a few upscale areas like Koramangala and Hebbal. According to the final implemented rule, citizens in B, C, D, E and F zones now will pay the property tax as per A, B, C, D and E zones. This means that the person paying Rs 1,000 as property tax in F zone will now pay 20% more and the zonal differential amount based on the guidance value of the area at present. Last year, BBMP mopped up about Rs 2,000crore in property taxes.