Revision of guideline values will not increase property taxes: MGP

According to him, there is a huge gap between the market value (land value and building value) of properties and the guidance value in major cities of Karnataka.

In a press release here, P M Bhat of the Mysore Grahakara Parishat has said the government proposes to set right this anomaly by increasing the guidance values.
It has been reported in the media that the guidance values will be increased by 25 to 50 per cent and this will result in a corresponding increase in property taxes.

But a hike in the guidance values of existing urban properties will not increase their property tax. Section 109A of the Karnataka Municipal Corporations Act, 1976 which governs increase in property tax says: “109A. Enhancement of property tax.-
Notwithstanding anything contained in section 108 and 109 the property tax assessed and levied under either provision shall not be assessed each year thereafter but shall stand enhanced by 15 percent once in every three years commencing from the financial year 2005-2006”.

Provided that the Municipal Corporation may enhance such property tax upto 30 per cent once in three years and different rates of enhancement may be made to different areas and different classes of buildings and lands. The non assessment of property tax under this section during the block period of three years shall not be applicable to a building in respect of which there is any addition, alteration or variation to it. Nothing contained in this section shall be deemed to affect the power of State Government to direct an earlier revision of property tax.

Bhat said it is clear from the wording that property tax is enhanced by 15 per cent in the years 2008, 2011, 2014, 2017, ... It can not be enhanced by any other amount just because property guideline values are enhanced. So, the present revision of guideline values will have no effect on existing properties. The only enhancement of the tax is the 15 per cent hike that is due this year.

Narendra Modi or Rahul Gandhi? Who will win the battle royale of the Lok Sabha Elections 2019


Get real-time news updates, views and analysis on Lok Sabha Elections 2019 on Deccanherald.com/news/lok-sabha-elections-2019 


Like us on Facebook or follow us on Twitter and Instagram with #DHPoliticalTheatre for live updates on the Indian general elections 2019.

Liked the story?

  • 0

    Happy
  • 0

    Amused
  • 0

    Sad
  • 0

    Frustrated
  • 0

    Angry