Deccan Chronicle      18.01.2011

City ups property tax by 30 per cent

January 18th, 2011

Jan. 17: From April this year, the city will be paying out
15 per cent more as property tax. Senior revenue officials told Deccan
Chronicle that with the three-year block period coming to an end for
the revised Self Assessment Scheme (SAS), property tax will be hiked
upwards.

The draft on the proposal for revision of property tax is
being readied. Amendment to section 108 of the Karnataka Municipal
Corporation (KMC) Act 1976, enables the BBMP council or the BBMP
commissioner (in the absence of elected council) to revise the property
tax from a minimum of 15 per cent to maximum of 30 per cent once in
three years. The BBMP council can take a final decision on the quantum
of hike. Since an elected council is in place, the hike cannot be more
than 15 per cent, said sources.

The block period can be enhanced to at least five or seven
years, sources added. The BBMP has so far collected Rs 975 crore in
property taxes. By the end of March, the figure could touch Rs 1,000
crore.