January 9, 2024: The Bruhat Bengaluru Mahanagara Palike (BBMP) has been taking several measures to boost property tax collection by reaching out to over six lakh property tax defaulters through SMS. The civic body is also sending notices to shops operating in residential areas of the city to pay taxes, as per media reports. As cited in media reports, a senior BBMP official has said that shops and small hotels functioning in a residential area must be categorised as ‘commercial’ and must be paying tax as a commercial unit under the existing rules. The move is part of the BBMP’s comprehensive strategy to boost property tax collection in the city.
The civic body has started serving notices to property owners who have under-assessed their properties, failed to declare new additions such as additional floors or rooms, and evaded property tax payments. Residents in several areas have received notices with some owners being asked to settle dues worth over Rs 2 lakh, mention media reports. The notices have been issued mostly for properties that have undergone additional construction, including additional floors or have converted residential spaces for commercial use. Property owners have to pay the differential property tax along with the applicable cess from the time of the additional construction.
Several property owners have received notices from the BBMP that they are required to pay property tax for units used for commercial purposes and interest on any discrepancies in property tax assessments.
As mentioned in media reports, the BBMP is targeting revenue collection of Rs 4,500 crore through taxes by the end of the financial year. In another move to boost revenue, the civic body is proposing revisions to its lease rules. According to a Deccan Herald report, various BBMP properties, mostly located in the city’s core area, have reportedly been leased at nominal rates despite commanding premium values. Lease agreements to those properties have been entered into years ago and have low rates, contributing little to the BBMP’s funds. Compounding the issue, original leases have sublet these properties at exorbitant rates, deviating from the terms of the initial contracts.
See also: How to pay BBMP property tax in Bangalore?
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Harini is a content management professional with over 12 years of experience. She has contributed articles for various domains, including real estate, finance, health and travel insurance and e-governance. She has in-depth experience in writing well-researched articles on property trends, infrastructure, taxation, real estate projects and related topics. A Bachelor of Science with Honours in Physics, Harini prefers reading motivational books and keeping abreast of the latest developments in the real estate sector.
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