Karnataka to reintroduce ಸಾಸ್ in ಬ್ಯಾಂಗಲೋರ್,BBMP Property Tax Rules 2008-Self Assessment Scheme Approved

The Karnataka cabinet sub-committee has recommended re-introduction of area based property tax system similar to the SAS (Self Assessment Scheme) introduced in the year 2000 for Bangalore Mahanagara Palike (BMP) areas.

Through this revised SAS, BMP plans to collect tax from 1.5 million houses to the tune of Rs 600 crore for the year 2008-09. In 2007-08, the BMP had collected Rs 350 crore as property tax. The cabinet sub-committee, headed by R Ashok, who is also the transport and Bangalore district in-charge minister, which was constituted to implement property tax scheme for BMP areas has recommended bringing back SAS.

With this, the proposed Capital Value System, for which an Ordinance was passed during the President’s rule last year, will be put in the cold storage. There are about 650,000 houses in old areas, 550,000 in new areas and 450,000 unauthorised houses in new areas.

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BBMP Property Tax Rules 2008-Self Assessment Scheme Approved

The state government has approved the draft rule for property tax under the Self Assessment Scheme (SAS) proposed by the BBMP. The BBMP has called for suggestions and objections from the public within 15 days, after which it will start collecting the taxes.

There is a proposal of a 20 per cent hike in the property tax
in the draft rule with the earlier rates under the SAS.

Also, the taxes can be collected either in one instalment or two.

The rule also mentions the proposal of a 5 per cent concession on the tax payable within the deadline of payment.

Several new concepts have been drafted in the BBMP Property Tax Rules 2008.

The definition for ‘building’ also includes towers and hoardings and ‘built-up area’ means the total area covered by the building or high- rise buildings above the plinth level, and the covered area like basements, mezzanine floorings, balconies, garage areas, constructed boundaries of swimming pool and towers or hoardings erected on the surface or top or any other open space of land or building.

The draft provides for the computerised method of random scrutiny of returns filed by the property owners. The property tax will now be accessed on the basis of the unit value of the property within the jurisdiction of the BBMP.

The BBMP is also authorised to the collect tax from those who use their property for parking facility.

Speaking to this paper, V Ravi Chandar, former member of Bangalore Agenda Task Force said, “The 20 per cent increase is quite considering but few will have to pay little extra if their property falls under the expensive zones and it depends again.” The Resident Welfare Associations in the city will have a meeting in the next two days to discuss and decide on the the course of action against the 20 percent hike.

New rules

1. Proposes 20 per cent hike in property tax.
2. Tax will be collected either in one instalment or two.
3. Concession of 5 per cent on tax payable, if it is paid on time.
4. Property tax is fixed on the basis of unit value of the property within BBMP area.
5. Computerised technology for scrutinising returns filed by the property owners.
6. Definition of non-residential or commercial buildings has also been widened.
7. Definition of built-up area of a bu i l d i n g h a s been elaborated Levy of service charges for the building exempted from property tax: Service charges to provide civic amenities in respect of building exempted from property tax under section 110, excluding places of worship shall be charged at the rate of 25 per cent of the property tax exempted plus as applicable to land or building or both.

Source:The New Indian Express, November 20