The Hindu 15.03.2011
‘Revision of guidance value will not push up property tax’
Local bodies can increase property tax only once in three years
The Mysore Grahakara Parishat (MGP) has said that the Government’s
proposed move to revise the guidance value of properties may not lead to
a further increase in property tax.
The Karnataka Commissioner of Stamps and
Inspector-General of Registration recently announced that revision of
guidance value of properties was under way. According to the
commissioner, there was a huge gap between the market value — land value
and building value — of properties and the guidance value in major
cities, and the Government wanted to set this right.
Speculation
Speculation was rife among citizens and non-governmental
organisations that an upward revision in the guidance value would lead
to increase in property tax, P.M. Bhat of the MGP said in a press
release.
However, he pointed out that a hike in the guidance
valueof existing urban properties would not lead to increase in property
tax. Citing Section 109A of the Karnataka Municipal Corporations Act,
1976, which deals with revision in property tax, Mr. Bhat said the law
clearly stated that the property tax assessed and levied under different
provisions shall not be assessed each year but shall be enhanced by 15
per cent once in three years, from the financial year 2005-06.
Mr. Bhat said the local bodies might increase property
tax up to 15 per cent once in three years and this might vary for
different buildings.
“Property tax goes up by 15 per cent every three years
and it cannot be increased further just by increasing the guidance
value,” Mr. Bhat.
