Property tax hike in Bengaluru capped at 25% for FY17

There are about 15 lakh property in Bengaluru's municipal limits, and the property taxes are the main source of income for BBMP.

Property tax hike in Bengaluru capped at 25% for FY17
BENGALURU: The increase in property taxes in Bengaluru for 2016-17 is going to be capped at 25% regardless of the raise the BBMP self-assessment portal shows and the zone in which the property is located.

Chief Minister Siddaramaiah held a meeting with city incharge minister KJ George, Mayor Manjunatha Reddy, BBMP Taxation Committee chairman M Shivaraj and BBMP Commissioner N Manjunath Prasad on Thursday after the city MLAs and corporators started getting complaints from people as the increase was huge in many cases.

“I had received many representations from present and past mayors, and the public requesting to sort out the property tax issues after the recent revision. I conveyed them to the chief minister,“ George said. The root cause of the problem was the simultaneous jump in property taxes as well as the zone where a property is situated. Bengaluru is divided into six zones ­­ from A to F. While the natural jump in a property's zone ­­ say from B to A ­­ caused a certain hike, this was compounded by another raise in revision over the prevailing rates. In many cases, the BBMP's online portal showed jump by two zones: a property is supposed to move up by just one zone over the 2007 zonal classification. Where properties moved up by two zones, the tax payer was supposed to choose the next zone. But the confusion prevailed.

“We will place the subject before the BBMP Council by way of a resolution tomorrow (Friday), and send it to the government.The changes will take effect after the government's approval,“ Shivaraj told ET.

While many MLAs are in favour of a refund in cases where people have already paid excess tax online to avail of the 5% rebate, Shivraj said the rules came in the way of a refund, and hence, the BBMP would adjust the excess amount against next year's taxes. A city-based minister wondered whether it would be fair on BBMP's part to keep honest taxpayer's excess money, and penalise him for paying ahead of the deadline.

Transport Minister Ramalinga Reddy hailed the Thursday's developments as a welcome relief to citizens.

There are about 15 lakh property in Bengaluru's municipal limits, and the property taxes are the main source of income for BBMP.

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