BANGALORE: Property owners in the five new zones comprising the seven erstwhile city municipal councils (CMC) and one town municipal council (TMC) areas will have to pay more property tax from this year.

As part of the property tax, the Bruhat Bangalore Mahanagara Palike (BBMP) will collect 10 per cent storm water drain cess in these areas in addition to the existing health cess (15 per cent), library cess (6 per cent) and beggary cess (3 per cent).

As much as 34 per cent of property tax collected from every property owner in the old areas is towards "other cess." This category comprises 10 per cent education cess, 15 per cent health cess, 6 per cent library cess and 3 per cent beggary cess.

But in the new areas, education cess is not part of this category. Now, the BBMP will add 10 per cent storm water drain cess in the new areas and rename "education cess" in old areas with "storm water drain cess."

"This will make the `other cess' category equal in the new and old areas, and harmonise the taxation system for the time being. We will later decide on whether to have a common system in all the areas," a top official in the BBMP's Revenue Department told The Hindu on Thursday.

The idea is to bring a uniform taxation system in the new and old areas. Now, the residents of the seven CMCs and one TMC are paying property tax based on the capital value of a building and those in the 100 wards of the erstwhile BMP are paying on the basis of the annual rental value.

Although the BBMP budget had proposed to continue the existing system as of now, official sources in the BBMP said the additional storm water drain cess would be collected from this financial year.

With the State Government revising the guideline value for properties in Bangalore, there is bound to be substantial increase in property tax in areas under the erstwhile seven CMCs where the tax is based on the capital value of the property.

Other charges

Apart from this, citizens of old and new areas will have to pay Solid Waste Management cess and Infrastructure Cess. These charges have been announced in the budget and will be calculated on the basis of the site dimension and the type of vehicle respectively.

The CMCs collected property tax of Rs. 51 crore annually.

The BBMP now targets to double it this year. In the old areas of the palike, the tax collection worked out to Rs. 347 crore last year with a revised target of Rs. 500 crore for this year.

Source:The Hindu April 20, 2007

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