The Bruhat Bengaluru Mahanagara Palike (BBMP) has issued a draft notification proposing the new property tax assessment method. The BBMP plans to implement a Guidance Value-Based Property Tax System. If implemented, the taxes on the properties in the heart of the city will be more than the buildings/lands on the outskirts. The BBMP currently follows the Unit Area Value system.
In the draft notification issued by BBMP Commissioner Tushar Giri Nath, the notice has sought objections if any from the affected citizens within 15 days from the date of publication. According to the notification, the BBMP plans to collect property tax using the Guidance Value of the properties.
The notification states that for tenanted properties, 0.2 per cent of the guidance value of the property. For self-occupied property, 0.1 per cent of the guidance value. For fully vacant land, 0.025 per cent of the Guidance Value. The construction cost per Sq. ft of residential building shall be taken as Rs.1500. In case of building on land, the cost of the building shall be depreciated @ 3% per annum subject to the upper limit of 60%, the notification stated. The property tax depends on the region in which the property is located and the area of the property/land.
The jurisdiction of BBMP has been classified into 6 value zones based on the published guidance value of the Department of Stamps and Registration.
