The BBMP extends the rebate period on property tax payments until May 31
As of May 31, 2022, the Bruhat Bengaluru Mahanagara Palike (BBMP) will extend the rebate period. In 2022-23, property owners in Bangalore can still receive a 5% rebate on their full payment. When a property tax return for the previous fiscal year has been filed, the property tax for the current year will be accompanied by the return and dues for the previous fiscal year, if any. In cases where taxpayers have filed revised returns for any year, the current year’s return will be based on the revised return. After adjusting for the tax for previous years, if any taxes were paid in advance, a cheque or DD will be sent after due verification if there is a balance.
For the existing year, BBMP property tax online accepts property tax in two installments. The same form is used for the second installment. When paying in one installment, taxpayers can receive a rebate of 5%. Arrears payments can be made generating challans for previous years. Currently, one can make a payment toward property tax if they have already paid the property tax at least once, using their SAS Base Application Number or PID Number. Cash or DD payments can generate an instant receipt. Payments made by cheque will, however, generate a receipt only after the check is realized.
There will be a loss of Rs 270 crore for the BBMP due to a blunder in property tax management
Due to a property tax mess, the Bruhat Bengaluru Mahanagara Palike is slated to lose Rs 270 crore in penalty and interest payments.
Citizens can choose from different zones based on the type of property they own in the city, as outlined by the Self-Assessment Scheme (SAS) introduced by the civic body in 2016. As a result of a technical glitch, citizens selected different zones and ended up paying less. After realizing this mistake, the BBMP began notifying citizens and imposing heavy fines up to five times for not paying BBMP property taxes. Karnataka Municipal Corporation Act also provided for 2% interest per month. BBMP had identified 78,254 property owners with unpaid tax liabilities and served notices to around 22,000 of them. As a result of strong opposition from citizens, which was escalated to higher authorities, the civic body refrained from serving further notices. Only about 11,000 owners paid the Rs 20.5 crore.
Property tax nets BBMP Rs 2,141.51 crores, 53% of target
To date, the BBMP has collected Rs 2,141.51 crore in property tax, which represents 53% of the target of Rs 4,000 crore. Gaurav Gupta, the BBMP’s chief commissioner, has directed revenue officials to identify defaulters in each of the eight zones, issue notices, and recover taxes. It is reported that the amount of tax collected in the same period last year was higher than the amount collected this year. Tax collections amounted to 2,780.9 crores last year, versus the target of 3,500 crores.
In recent weeks, the authority has issued over 78,500 notices to property owners regarding alleged tax zone mismatches. Tax zone reclassification was done in 2016-17, so they had to pay the difference in tax plus penalty and interest for four years. As per a senior official, the authority would earn over Rs 360 crores in revenue from property tax and penalties and interest.
In spite of COVID-19, BBMP tax collection is higher
During the same period in 2019-20, the BBMP collected Rs 2,467 crores, compared to Rs 2,483 crores in 2021. In spite of the Coronavirus pandemic, the body’s collections remained unaffected by the pandemic. A total of 19 lakh properties are under BBMP’s jurisdiction.
Revenues from property tax may increase in 2021. As early as March 31, 2021, the BBMP would have surpassed last year’s record of Rs 2,606 crores. Mahdevapura was the top zone in the city’s eight zones, collecting Rs 716.25 crores in property tax, while the east zone collected Rs 500.23 crores, followed by the south zone with Rs 388.16 crores, the west zone with Rs 269.08 crores, Bommanahalli zone with Rs 266.54 crores, Yelahanka zone with 218.69 crores, Raja Rajeswari Nagar zone with Rs 175.77 crores, and Dasarahalli zone with Rs 71.45 crores.
BBMP issues notices
About 78,000 property owners have been served notices for filing inaccurate property details in the self-assessment scheme. In such cases, defaulters will be required to pay the difference plus an additional 2% penalty for two years.
The BBMP plans to implement an automated system starting April 1, 2021, where tax details will already be provided and owners will just have to pay.
Extra charges for handling waste
A fee for doorstep waste pickup will now be added to Bengaluru property tax bills. This service will cost residential property owners Rs 200 per month, while commercial property owners will pay Rs 500 per month. It will be in addition to the Solid Waste Management (SWM) cess, which is currently between Rs 200 and Rs 600. Society composting waste has been proposed to be exempt from 50% SWM cess, but it has not yet been approved.
For violations of building plans, there is a double property tax
Property owners who violated building plans in 2020 would be penalized and pay double property taxes. JC Madhuswamy, the law minister, said the proposal was approved and the amendment to the KMC was made so that the BBMP can levy this penalty.
There will be no increase in BBMP property taxes
In Bangalore, plans were afoot to raise property taxes for residential and non-residential properties by 15%-30%. An administrative reason prevented BBMP special commissioner Basavaraju from revising taxes in 2020. KMC, 1976, allows the BBMP to revise the property tax every three years. In order to meet its revenue goals, the move is crucial.
As a result, the agency failed to achieve its revenue target of Rs 3,500 crores in 2019-20. From March 2021, property taxes would increase. This plan, however, has been shelved for now, which is a relief for property owners.
Amendments to KMC Act
BBMP officials are also able to attach immovable properties of defaulters under an amendment to the KMC Act (Karnataka Municipal Corporations Act). The commissioner proposed that the Land Revenue Act be included in the KMC Act and thereby empower BBMP officials. 2020’s revenue target for the BBMP is Rs 5,500 crore.
Smart city project and Integrated Command and Control Centre (ICCC)
Integrated Command and Control Centre – the brain of the smart city project – has been approved at a cost of Rs 109 crore. Besides city management and disaster management decisions, there will also be a common helpline number, a mobile app, and a web portal. A central platform will be created for BBMP, BMTC, BWSSB, BESCOM, City police, and Namma Metro, which is funded by Bengaluru Smart City Ltd. There will be a focus on mobility, solid waste management, and health in the command center. As a result, the livability quotient of the city will increase. Online grievance redress is also possible for citizens.