More properties to target more tax
“We cannot say the system is 100% foolproof but this time, we are on the right track and better prepared,” according to BBMP commissioner S Subramanya. No increase in rates and standing to lose depreciation on most properties for nine years, the Palike’s only hope of increased revenue is getting more properties under tax. The GIS mapping, forms introduced for even properties without a khata and bringing in new properties like telecommunication towers under tax are just a few measures in this direction.
It aims to target a revenue of Rs 550-600 crore from at least 18 lakh properties as against 12 lakh properties the last time. There might not be a significant increase in revenue, considering most properties are also vacant sites. However, the 450 high-value properties that contributed to at least 35% of total revenue resource last time will also continue to remain pivotal, he added.
The Palike received 600 objections to the draft notification issued on December 30, 2008. “We have replied to each and every objection, barring the repetitions. More than 113 objections were the same!’’ he said. FOR RESIDENTIAL PROPERTIES
Only if the entire flooring of the house is either of cement or red oxide flooring, then such houses shall fall under category III. If the house has mixed flooring (partly cement or red oxide flooring and partly mosaic, tile, etc.) then category I is applicable and not category III
Houses that are partly RCC and partly tiles/sheet may calculate the portions separately and apply the UAV
Under special category V, the lumpsum tax is applicable only for ordinary village houses and not for those houses, villas and apartments that have come up in layouts approved by Local Planning Authorities or developed by BDA, Karnataka Housing Board or any private layout developed. For houses and apartments which have come up in such layouts, property tax shall be computed on the basis of rate prescribed for the zone under which the property falls
For covered or stilt parking area, tax may be computed at 50% of the Unit Area Value fixed for the respective category of building, zone and status (tenanted/owner-occupied)
In case of apartment/flats, the owner or occupier and such other person like the apartment association, society etc. who administers the common facilities like manager office, club house, swimming pool, canteen, health club, gym, etc. for the residents of the apartment shall file a return and pay property tax for such the built area (facility area), but excluding security cabin, pumphouse and electrical room, at the rates prescribed for owner occupied status for the respective zones
Paying guest accommodation, not being service apartment/home, is classified under Table I under category I to III as the case may be, and the rates prescribed for such use of building shall be those applicable to tenanted status of the respective zones FOR NON-RESIDENTIAL BUILDINGS
In case of outdoor sports stadium (cricket, hockey, tennis, etc.), the covered area for spectators’ gallery will be computed to tax at 20% of the UAV applicable for that area/zone while for other recreations and clubhouse facilities shall be computed at the prescribed rates under category VI
All properties seeking grant of exemption under Section 110 shall apply to the commissioner in the prescribed application form (Form VI) along with the payment of service charges prescribed under category XVI. If the application falls within the conditions under Section 110, then payment will be accepted and exemption certificate will be issued. If the application is rejected, then property tax at non-residential rates will apply
When a property is exempted from property tax and if any portion of the property is used for any other purpose other than for the purpose for which the exemption is granted, then for such usage falling either under Table I or Table II, the property tax shall be payable at the prescribed rates to such extent and usage
For covered or stilt parking area, tax may be computed at 50% of UAV fixed for the respective building category, zone and status (tenanted/ owner-occupied)
Category XIII (kalyan mantap, shadi mahal, community hall, convention hall, etc) including temporary structures let out for marriage, reception, meetings or for any function/exhibition and not being a hotel or a restaurant will be taxed according to the built-up area including basement, cellar and all other covered area, irrespective of the location (zone)
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