Tax likely on apartment pools, parking

Tax likely on apartment pools, parking

A cash-strapped Bruhat Bangalore Mahanagara Palike (BBMP) plans to levy property tax on common areas in apartment and commercial complexes.

The common areas include lobby, lifts, pool, gym, garden, parking space, playground and other such facilities. The owner of the common areas—whether it is an apartment association or an individual—will have to bear the cost.

The levy will be imposed only after a year or two as the BBMP wants to conduct a detailed survey of such properties. The civic agency expects to enhance its revenue collection by 30 per cent.

“Once the rates are decided, an extensive survey will be carried out across the City to measure all the apartments and commercial complexes,” said BBMP Deputy Commissioner (Revenue) M Venkatachalapathy. 

Club houses will also be treated as commercial buildings and taxed on a par with other commercial establishments such as malls and supermarkets, said BBMP Administrator T M Vijaya Bhaskar.

At a recent “khata adalat” held in Mahadevapura zone, it came to the BBMP’s notice how several flat owners were not paying taxes for common areas, said Bhaskar.
“If implemented, there will be at least 30 per cent extra property tax collection from each zone and in turn will boost the revenue,” he added.

Sources in the BBMP said that at present, flat owners are paying property tax only on the basis of carpet area, the actual usable area.

The BBMP will study how the tax on common areas is being charged in other metropolitan cities, sources added.

The proposal has not gone down well with flat owners. “We are already paying maintenance charges and property tax based on the built-up area. Why should we pay more?” a flat owner from Magadi Road, Shikha K, said.

Pavan Kumar from Padmalaya Residency Owners’ Association, ISRO Layout, said that the proposal is unfair.

Comments (+)