According to Section 112(3) of the Karnataka Municipal Corporations Act 1976, property tax has to be paid within 90 days of the commencement of the financial year. Any delay would entail penalty at the monthly rate of two per cent of the unpaid sum.
As in the ARV system, CVS also offers a rebate of 5 per cent of property tax if the amount is paid within 30 days of the beginning of the financial year. Under CVS, property tax is assessed on the basis of total value of the property.
As much as 0.5 per cent of the total value is collected as tax for residential properties, while for commercial buildings the tax is 2 per cent of the total value.
The Palike considers the guidance value fixed by the Revenue Department for assessing the property value.