BENGALURU: The BBMP proposes to introduce a guidance value-based tax assessment system in its limits.
It published a draft notification in this regard on Tuesday and invited objections from property owners to be filed within 15 days.
Under the proposed system, property owners in the heart of the city are likely to pay more taxes.
Under the existing system, the BBMP is collecting tax based on the Unit Area Value (UAV), which is based on expected returns from the property, depending upon its location and the nature of its usage.
Under the proposed system, taxation will be based on the guidance value fixed by the Revenue Department. If it comes into force, a property owner will have to pay taxes based on the area where his property is located and the guidance value specified to that locality.
New tax system in next FY
According to BBMP Chief Commissioner Tushar Girinath, the palike also proposed a capping on tax. He stated that other cities have already adopted a taxation system based on the guidance value under the Karnataka Municipal Corporation (Amendment) Act 2021.
The palike will also introduce the same. The new property tax system will be implemented in the next financial year (2024-25). According to the notification, for tenanted properties, 0.2% of the guidance value will be fixed as tax. For self-occupied property, 0.1% of the guidance value will be fixed as tax.
For vacant land, 0.025% of the guidance value will be levied. For nonresidential or commercial properties, the tax for non-residential property (occupied) will be 0.5% of the guidance value.