BENGALURU: The Namma Bengaluru Foundation has written to the Bruhat Bengaluru Mahanagara Palike (BBMP) Chief Commissioner on the proposed change in the collection of property tax based on guidance value and has recommended that if the change is deemed necessary, it should be implemented gradually and in phases.
This would allow property owners to get adjusted to the new tax structure and avoid sudden financial strain. “Establish a system for regular reviews and adjustments based on actual property conditions and market dynamics. This ensures that the property tax calculation remains fair and reflective of the current situation. Conduct thorough public consultations to gather inputs from property owners and residents,” the forum recommended.
It stressed on the need to clearly communicate the proposed changes, including outlining reasons, methodologies and anticipated benefits, to foster community trust and comprehension.
The letter mentioned that it is crucial to consider special cases like heritage properties, ensuring fairness through tailored provisions. Measures should be introduced to offer tax relief to low-income households, senior citizens and other vulnerable groups, alleviating potential financial strains from heightened property taxes. Exploring integration with Smart City initiatives can optimise property assessments through technological advancements.
The letter stated that it is imperative to commence property tax collection from the date of the occupancy certificate for a building. Prior to that, property tax should solely apply to vacant or open land, excluding constructed buildings. Additionally, revising property tax at intervals of every five years should be considered. With a yearly increase of 5 per cent in property tax, there is a potential for substantial hikes in property prices and rents, burdening middle-class home buyers.
The organisation highlighted that many properties lack khatas, prompting BBMP to collect taxes through notices. It is BBMP’s responsibility to give khatas to these properties before initiating tax collection. To simplify tax collection, BBMP can consider taxing the entire built-up area of buildings, allocating the carpet area to owners and common areas to associations, based on khata records.
The letter was written to highlight the proposal to align property tax with guidance values that may not sufficiently accommodate variations in property conditions. Some properties with high guidance values may require substantial maintenance or infrastructure improvements. This change could increase the tax burden, particularly if guidance values surpass current property assessments, posing financial challenges for residents, especially those with fixed incomes.
“A comprehensive assessment is essential, taking into account factors like amenities, accessibility and local services. A sole focus on guidance values may oversimplify the process, neglecting these critical elements,” the letter stated.
BBMP issues notice to property tax defaulters
Bengaluru: The Bruhat Bengaluru Mahanagara Palike (BBMP) has prepared a list of defaulters, zonewise, and has put the list on public domain for all to access. The list details the name and address of the property owner, demand of tax to be paid per year, number of years since the amount is due, the total property tax that is due, application number, remark (defaulter/notice issued/occupied/vacant building), ward name and number and zone. As per the list, while some defaulters have dues pending for a year, some others have dues for as long as six years. The details are also uploaded on the website.