BENGALURU: The fifth State Finance Commission has recommended that all urban local bodies (ULBs) should levy, revise and collect the property tax based on the guidance value revised periodically to improve their own source revenue. “It is observed that the own source revenue of ULBs has not improved considerably,” it noted.
The commission also suggested BBMP to adopt latest guidance value-based assessment of property tax soon and enhance the efforts of agencies to collect intended non-tax revenue. Also, the Karnataka Local Fund Authorities Fiscal Responsibility Act 2003 came into force in April 2021. But relevant rules have not been framed as yet for ULBs, though rules have been framed for BBMP. The commission has recommended to the state government to frame the rules for the Act with respect to ULBs.