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.