Every year, owners of residential properties in Bengaluru must pay property tax to the Bruhat Bengaluru Mahanagara Palike (BBMP). These funds are used by the municipal government to provide civic services such as road maintenance, sewer system maintenance, public parks, education, and so on.
In March 2017, the BBMP commissioner announced that homeowners who had not paid their property tax for the previous year would be declared offenders, and their movable assets, such as furniture, would be seized. According to the BBMP, at least 20,000 property owners in the city have failed to pay their taxes for one or more years.
All about BBMP online services
The BBMP proposed an amendment to the Karnataka Municipal Corporations Act in November 2018 to double the property tax for owners who violated building by-laws and deviated from the approved plan. It also stated that municipal officials who were found to have failed to take action against such property owners could face jail time.
How to calculate property tax
For calculating the amount of property tax payable on residential properties, the BBMP uses a Unit Area Value (UAV) system. The UAV is based on the expected returns from the property, which vary depending on location and usage. The calculation is based on a per square foot, per month (unit) basis for a specific location or street (area), multiplied by the current property tax rate (value). The BBMP’s jurisdiction is divided into six value zones based on the Department of Stamps and Registration’s guidance value. The rate of property taxation will vary depending on the zone in which the property is located.
The formula used to calculate property tax is as follows:
Property Tax (K) = (G – I) x 20%
Where,
G = X + Y + Z
and I = G x H/100
G = Gross unit area value
X = Tenanted area of property x Per sq ft rate of property x 10 months
Y = Self-occupied area of property x Per sq ft rate of property x 10 months
Z = Vehicle parking area x Per sq ft rate of vehicle parking area x 10 months
H = Percentage of depreciation rate (depends upon the age of the property).
BBMP property tax calculator
A comprehensive guide to all the values is available on the BBMP website, along with a property tax calculator.
How to pay property tax online
The most convenient way to pay your property tax, is online on the BBMP website, with your credit or debit card or through internet banking. (https://bbmptax.karnataka.gov.in/)
You can access your property information by using your Base Application Number or Property Identifiers (PID). You can only make an online payment for your property tax if you have already paid it at least once, using your Sas Base Application or PID NUMBER.
How to get PID
Go to the BBMP’s official website and click on “Citizen Services.” You will be taken to a new page where you must select ‘GIS Enabled Property Tax Information System.’ Register using your first and mobile phone numbers. The property associated with your mobile number will be displayed on the map. If your mobile number is not listed, you can enter your previous payment Application ID, and your new PID number will be displayed.
Rebate on property tax
If you pay your entire property tax bill by May 30th of each year, you will receive a 5% rebate. If you choose to pay in two instalments, no interest is charged on the first instalment if paid by May 30 and no interest is charged on the second instalment if paid by November 30 every year.
Check that the system has updated your record and that there are no outstanding amounts on your account. If there are any mistakes, have them fixed right away.
Download BBMP property tax receipt
Navigate to the BBMP Property Tax portal and select ‘Downloads.’ Choose an option from the drop-down menu. This page allows you to print the receipt, Challan, or application. To view the document you want to print or save, enter the assessment year and application ID.
BBMP property tax news:
BBMP tax collection higher, in spite of COVID-19
The BBMP had collected Rs 2,483 crores as of January 28, 2021, compared to Rs 2,467 crores during the same period in 2019-20. The body was in desperate need of additional revenue, especially after the Coronavirus pandemic, but its collections did not suffer by the pandemic. The BBMP is responsible for approximately 19 lakh properties.
Property tax revenue may see an increase in 2021. The BBMP would have already surpassed last year’s record of Rs 2,606 crores by March 31, 2021. With property tax collections totaling Rs 716.25 crores, Mahadevapura was the top zone among the city’s eight zones, followed by the east zone with Rs 500.23 crores and the south zone with Rs 388.16 crores, West Zone (Rs 269.08 crores), Bommanahalli Zone (Rs 266.54 crores), Yelahanka Zone (Rs 218.69 crores), Raja Rajeswari Nagar Zone (Rs 175.77 crores), and Dasarahalli Zone (Rs 71.45 crores).
BBMP issues notices
Approximately 78,000 property owners have received notices for providing incorrect information about their properties in the self-assessment scheme. Such defaulters will have to pay the difference in the amount as well as a 2% penalty for a period of two years.
The BBMP has decided to implement an automated system beginning April 1, 2021, in which property details will already appear and owners will only have to pay the tax.
Extra charges for handling waste
Property owners in Bengaluru will now have to pay an additional fee for doorstep waste pickup service as part of their property tax bill. Residential property owners will pay Rs 200 per month for this service, while commercial property owners will pay Rs 500 per month. This will be in addition to the Solid Waste Management (SWM) cess, which is currently in the range of Rs 200 – Rs 600. The SWM cess has yet to receive approval for composting societies.
BBMP Property tax rebate for COVID-19
In light of the Coronavirus pandemic, the BBMP extended the deadline for claiming a 5% property tax rebate from April 30 to May 31, 2020, a 31-day extension.
Double property tax for building plan violations
In 2020, the Cabinet intends to collect double taxes from property owners who violate construction plans. According to Law Minister JC Madhuswamy, this proposal passed, and the KMC changed to allow the BBMP to levy this penalty.
No hike in BBMP property tax
There were plans to raise the property tax in Bangalore by 15% to 30% for both residential and non-residential properties. However, the BBMP commissioner said that administrative reasons prevented them from finishing in 2020. As per the Karnataka Municipal Corporation Act (KMC), 1976, the property tax increases every three years by the BBMP. The move is critical in order for the cash-strapped municipal agency to meet its revenue targets.
The agency’s revenue target for 2019-20 was Rs 3,500 crores, but it only earned Rs 2,669 crores. The property tax increase scheduled to take effect in March 2021. Meanwhile, property owners can relax; for now, the plan has come to a halt.
Amendments to KMC Act
An amendment to the KMC Act also allows BBMP officials to attach defaulters’ immovable properties. An amendment submitted to the KMC Act to incorporate provisions from the Land Revenue Act, empowering BBMP officials. The BBMP anticipates achieving a revenue target of Rs 5,500 crores in 2020.
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Integrated Command and Control Centre (ICCC) and smart city project
Integrated Command and Control Center, the central brain of the Smart City project, will cost Rs 109 crore. Additionally, a dedicated mobile application, helpline number, and emergency management system will be part of the system. Through one platform, the city police, as well as BBMP, BMTC, BWSSB, and BESCOM will come together. The command center’s priorities will be mobility, solid waste management, and health. As a result, the city’s livability quotient will improve. Citizens may also be able to find online grievance redressal.
