BBMP proposes to link Completion Certificate (CC) and Occupation Certificate (OC) to property tax data


Bruhat Bangalore Mahanagara Palike (BBMP) has come up with a foolproof system to collect the property taxes and do away with tax evaders and the citizens will no longer be able to suppress the extent of built-up area to reduce their property tax burden.

False declarations by citizens are a problem that the civic body is trying to solve by proposing to link Completion Certificate (CC) and Occupation Certificate (OC) to property tax data.

False declarations or misrepresentation of facts by the citizens regarding the built up area and commercial properties, which are declared as residential use to evade property taxes is a common occurrence across the city.

Over few lakh properties are not assessed to tax and have been evading taxes for long, they must also brought to book.  Properties with violation and deviation must be taxed on an higher slab as they are illegal.

SAS scheme under the Unit Area Value (UAV) was introduced by the civic body in 2008-09 wherein citizens can declare the extent of their property, calculate the tax due and pay the same to the civic body. It was totally misused or used for the purpose of wrong declaration and tax evasion.

By linking CC and OC to property tax, all data, including carpet area and super built-up area, will be readily available. “There will be no reason to reassess the property to check the tax. As it is, building plan approval has already gone online. This will make the system fool-proof and further this move is likely to affect big property owners, builders and commercial complexes where the built-up area is usually suppressed. “This is the most effective way to plug leakage of revenue,” they added.

BBMP officials said that earlier attempts to link data from Bangalore Electricity Supply Company (BESCOM) and Bangalore Water Supply and Sewerage Board (BWSSB) with property tax had failed. This was to ascertain the number of properties that have commercial power and water connections and have declared falsely as being residential to evade tax. However, sources said the proposal to link the data did not work due to incomplete addresses in the Bescom and BWSSB data.

Property tax rates will be increased by 20% to 25% from 01-04-2016, with a gazette notification to be issued by the end of January. Apart from hiking property tax rates, the civic body will also affect an increase in advertisement tax, trade license fees and the fee for road cutting for laying optic fiber cables from the next fiscal. According to sources, the hikes are expected to bring in an additional Rs. 800 crore for the BBMP. Though the Karnataka Municipal Corporations Act, 1976, mandates revision of tax rates every three years, hikes had been stalled for eight years, drawing the attention of the Comptroller and Auditor General.

PROPERTY TAXES WILL BE HIKED FROM 01-04-2016, SUBJECT TO THE LEGAL CLEARANCE IN BBMP LIMITS- HIKE BETWEEN 30% TO 40% ACTUALS BUT ON PAPER IT IS 20% AND 25%


Revision of property tax in Bangalore and its legal issues

The Government has approved the revision of property taxes in BBMP limits after 7 long years and the hike is in the range 20% of residential buildings and 25% for commercial buildings.

It is also discovered that over 2 lakh property owners are not paying the taxes at all and out of 16.80 lakhs property owners, majority of them have falsified the actual size or extent of construction.

A group of citizens have demanded that katha be withdrawn for the properties which have violated the sanctioned building plan and There is also a possibility to link the tax payment to the sanctioned building plan.

The tax slabs have also been revised with the guidance value of the properties and the actual hike will be much more than 20% to 25%.

The burgeoning city has witnessed a growth of around 70 per cent with many suburbs seeing exponential appreciation in land prices. As a result, areas like Whitefield, Yelahanka and other suburbs are likely to jump two or even three tax zones. This will effectively hike property tax in these areas by 35 to 40 per cent.

The Urban Development Department  is finalizing the draft notification of the property tax revision and would be published in couple of days, so that the property owners can raise objections after considering which the final notification would be issued.

But, there is a legal problem for the revision, to revise the property taxes, The government should have set up the Karnataka Property Tax Board as per the  KMC Act, 1976 was amended in 2011, as per the recommendations of the 13th Finance Commission.

There is a demand that Illegal buildings, buildings with violation and B katha buildings must be taxed 5 times the normal tax.

PROPERTY TAXES/MUNICIPAL TAX WILL BE INCREASED IN BANGALORE – BBMP -NEW YEAR GIFT


CHIEF MINISTER OF KARNATAKA SRI.SIDDARAMAIAH HAS STATED IN THE ASSEMBLY THAT THE PROPERTY TAXES WILL BE REVIEWED AND WILL BE HIKED ACCORDINGLY WITHIN THE BBMP LIMITS AND GOVERNMENT WILL INITIATE ACTION TO COLLECT THE TAXES AND CHARGES ON THE APARTMENTS IN AND AROUND ELECTRONIC CITY SOON.