(1)
Ļ¯ೇಷ ªಾಜÍ ಪĦÎೆ
BRUHAT BENGALURU MAHANAGARA PALIKE
Office of Chief Commissioner, NR Square, Bengaluru – 560002
080-2297 5500 [email protected]
No. Ch. Comm/JC(R)/PR/3329/2023-24 Date: 20-02-2024
Draft Notification
No. Ch.Comm/JC(R)/PR/3329/2023-24, Dated:- 20th February, 2024
The
draft
notification
determining
the
Unit
Area
Value
by
the
Chief Commissioner, Bruhat Bangalore Mahanagara Palike in pursuance to the
Explanation to sub-section (5) of section 144 of the Bruhat Bengaluru Mahanagara
Palike Act, 2020, (Karnataka Act 53 of 2020) is hereby published as required by
the proviso to the said Explanation for the information of the persons likely to be
affected thereby and notice is hereby given that the said draft will be taken into
consideration after 15 days from the date of publication in the official Gazette.
Any
objection
or
suggestion,
which
may
be
received
by
the
Chief Commissioner, Bruhat Bangalore Mahanagara Palike from any person with
respect to the said draft before the expiry of the period specified above will be
considered by the Chief Commissioner, Bruhat Bangalore Mahanagara Palike.
Objections or suggestions may be addressed to the Chief Commissioner, Bruhat
Bangalore
Mahanagara
Palike,
NR
Square,
Bangalore-560
002.
Email address: [email protected].
Tushar Giri Nath, IAS
Chief Commissioner
Bruhat Bangalore Mahanagara Palike
¨sÁUÀ – 3
Part – III
20
2024(
, 01
1945)
BENGALURU, TUESDAY, 20, FEBRUARY, 2024(PHALGUNA, 01, SHAKAVARSHA, 1945)
. 99
No. 99
2
Guidance Value Based Property Tax System
(1) Property Tax for Residential properties/lands and Residential vacant lands.
Broadly, the property tax has two components.
(i)
PT Portion arising out of Land/Property (including the apartments/
flats)
Property
Tax
for
Tenanted
property/lands per Sq.ft. Per year =
0.2%
of
the
Guidance
value
of
the
property/land as prescribed u/s 45B of
Karnataka stamps Act,1957 (in per Sq.ft)
Property
Tax
for
self-occupied
property/lands per Sq.ft. Per year =
0.1%
of
the
Guidance
value
of
the
property/land and as prescribed u/s 45B of
Karnataka stamps Act,1957 (in per Sq.ft)
Property Tax for fully vacant land =
in per Sq Foot per year
0.025% of the Guidance value of the land as
prescribed U/S 45B of Karnataka stamps
Act,1957 (in per Sq.ft)
In case of building on a land, the cost of the building shall be depreciated @ 3%
per annum subject to upper limit of 60%.
(ii)
PT Portion arising out of building (other than Apartments/Flats)
Property Tax for Tenanted building
per Sq.ft. Per year =
0.2% of the [construction cost of the building
minus 3% depreciation per year capped at
60%] (in per Sq. ft)
Property
Tax
for
self-occupied
building per Sq.ft. Per year =
0.1% of the [construction cost of the building
minus 3% depreciation per year capped at
60%] (in per Sq. ft)
The construction cost per Sq. ft of residential building shall be taken as
Rs.1500/-.
Hence overall property tax as sum of above two items –
Property Tax Per Year
=
[PT per Sq.ft arising out of land/property x
total plot or flat area] + [PT per Sq.ft arising
out of Building (other than Flats) x total
building area] (if applicable)
(2) Property Tax for Non-Residential properties/lands (all purposes other than
industrial and Star Hotels) and Non-Residential vacant lands (all purposes other
than industrial and Star Hotels)
Broadly, the property tax has two components
3
(i)
PT Portion arising out of Land/Property (including apartments/ flats
put to non-residential use)
Property
Tax
for
non-residential
property/ lands per Sq.ft. per year =
0.5%
of
the
Guidance
value
of
the
property/land as prescribed u/s 45B of
Karnataka stamps Act,1957 (in per Sq.ft)
Property Tax for fully vacant land =
in per Sq Foot per year
0.025% of the Guidance value of the land as
prescribed u/s 45B of Karnataka stamps
Act,1957 (in per Sq.ft)
In case of building on a land, the cost of the building shall be depreciated @ 3% per
annum subject to upper limit of 60%.
(ii)
PT
Portion
arising
out
of
non-residential
buildings
(other
than
Apartments/Flats, Industrial and Star Hotels)
Property Tax for both tenanted and
self-occupied building per Sq.ft.
Per year =
0.5% of the [construction cost of the building
minus 3% depreciation per year capped at
60%] (in per Sq. ft)
The construction cost per Sq,ft of Non-Residential (all purposes other than
industrial and Star Hotels) building shall be taken as Rs.2000/-.
Hence overall property tax as sum of above two items –
Property Tax Per Year
=
[PT per Sq.ft arising out of land/property x total
area of plot or flat] + [PT per Sq.ft arising out of
Building (other than Flats) x total building area]
(if applicable)
(3) Property Tax for Non-Residential properties/lands (Star Hotels)
Broadly, the property tax has two components.
(i)
PT Portion arising out of Land/Property
Property
Tax
for
Star
Hotels
property/lands per Sq.ft. Per year
=
0.75%
of
the
Guidance
value
of
the
property/land as prescribed U/S 45B of
Karnataka stamps Act,1957 (is per Sq.ft)
In case of building on a land, the cost of the building shall be depreciated @ 3%
per annum subject to upper limit of 60%.
(ii)
PT Portion arising out of Non-Residential Buildings (Star Hotels)
Property
Tax
for
Star
Hotel
building per Sq.ft. per year =
0.75% of the [construction cost of the building
minus 3% depreciation per year capped to 60%]
(in per Sq. ft)
4
The construction cost per square foot of Non-Residential (Star Hotels)
building shall be taken as Rs.4000/-.
Hence overall property tax as sum of above two items –
Property Tax Per Year
=
[PT per Sq.ft arising out of land/ property x total
area of land/plot] + [PT per Sq.ft arising out of
Building x total building area]
(4) Property Tax for Non-Residential (Industrial) properties/lands and Non-
Residential (Industrial) fully vacant lands.
Broadly, the property tax has two components.
(iii)
PT Portion arising out of Land/Property
Property Tax for both tenanted and
self-occupied Industrial property/
lands per Sq.ft. per year =
0.3% of the Guidance value of the property/land
as prescribed u/s 45B of Karnataka stamps
Act,1957 (is per Sq.ft)
Property Tax for fully vacant land
in per Sq Foot per year =
0.025% of the Guidance value of the land as
prescribed u/s 45B of Karnataka stamps
Act,1957 (in per Sq.ft)
In case of building on a land, the cost of the building shall be depreciated @ 3%
per annum subject to upper limit of 60%.
(iv)
PT Portion arising out of industrial buildings (other than
Apartments/Flats)
Property Tax for both tenanted and
self-occupied building per Sq.ft.
per year =
0.3% of the [construction cost of the building
minus 3% depreciation per year capped to 60%]
(in per Sq. ft)
The construction cost per square foot of Non-Residential (Industrial)
building shall be taken as Rs.2000/-.
Hence overall property tax as sum of above two items –
Property Tax Per Year
=
[PT per Sq. Ft arising out of land/ property x
total area of land/plot] + [PT per Sq. Ft arising
out of Building (other than Flats) x total building
area] (if applicable)
Note: In case of Public Sector Industrial Buildings and Properties/lands the
applicable property tax rate shall be fifty percent of rates applicable for other
industrial units (both land/properties and the buildings).
5
(5) Property Tax for houses which are the hutments, housing for poor by
Government, houses declared as Slum by Karnataka Slum Development Board or
by the BBMP (all having area less than 300 square feet and self-occupied).
Annual composite property tax (lump sum) of Rs 300 (rupees three hundred only)
plus Cess at applicable percentages.
(6) Service Charges for properties exempted from payment of Property Tax.
Service charges shall be paid with respect to the properties or land or both, excluding
places for worship, which are exempted under section 152 of the BBMP Act, 2020, at a
rate of 25% of the otherwise payable Property Tax for Non-Residential Category (2) in
this Notification plus cess at applicable rates.
(7) Property Tax on Telecommunication Towers, Hoardings/billboards or
Electronic Devices affixed on buildings or lands.
Rs 20000 (rupees twenty thousand) per year per telecommunication tower/per
hoarding/per electronic device plus cess at applicable rates.
(8) General Conditions:
The above provisions shall be subject to the following conditions –
(i)
In case the property tax payable as per this revised Notification for any
property or land, other than a fully vacant land, increases by more than
20% (twenty percent) as compared to the property tax liable to be paid
immediately before this revised Notification; then the increase shall be
capped at 20% a year. Then for each subsequent year the property tax
shall be increased at a rate of 20% per annum until it catches up with the
property tax payable under this Notification. Provided that last increase
could be less than 20% so as to ensure payable property tax matches with
the property tax payable under this Notification. Thereafter, the annual
increase shall be at the annual rates prescribed under this Notification at
condition (iii) below.
Provided that any increase on account of change in use of property or
additional construction or due to any reason other than merely on
account of switchover to this new method of property tax calculation; the
said cap of 20% shall not be applicable.
(ii)
No reduction of the existing property tax shall be done if this Notification
leads to payable property tax less than what is presently payable and the
property tax applicable at present shall continue to be imposed until the
property tax payable under this revised Notification exceeds the existing
property tax being levied. Thereafter the property tax shall be as per this
revised Notification.
6
Provided that any decrease on account of change in use of property or
demolition of a building or a part thereof or due to any reason other than
merely on account of switchover to this new method of property tax
calculation; the reduction in payable Property Tax shall be permitted.
(iii)
The property tax shall be increased by 5% (five percent) on 1st April of
every year starting from the year 2025, on all items mentioned in this
Notification.
Provided that for properties or lands whose property tax is based the
Guidance Values; as and when there is a revision of the Guidance Values
under section 45 B of the Karnataka Stamps Act 1957, which entails an
increase in the property tax currently being currently charged, the same
shall be increased to match the property tax payable as per the revised
Guidance Values.
Provided further that the building construction rate shall also increase by
5% each year from the year 2025-26 and the said increase shall be treated
as part of the overall 5% increase in the Property Tax. Further, upon
revision of construction rates by the Public Works Department, the Chief
Commissioner shall adopt them if that entails an increase in the building
construction rate but not otherwise.
(iv)
The Guidance Value applicable for this Notification for any property or
land shall be one for the developed land or A-Khata property/land on the
same location and put to same use as the property or land in question.
(v)
The property tax applicable for any Property in B-Register as per section
144(6) of the BBMP Act 2020 shall not be less than the one applicable for
A-Khata property at the same location and used for the same purpose.
(vi)
In case of mixed use of a property/land (used as mix of different purposes
such as residential, non-residential, industrial), the land and the building
(if applicable) therein shall be liable to pay the property tax at rates
prescribed for the said use in this Notification in proportion to the area
put to said use and taking the sum of property taxes over all such uses.
(vii)
In case of outdoor sports stadia such as for hockey, cricket, tennis etc.,
the covered area of the spectator’s gallery for viewing the event shall be
computed to tax at a rate of 20% (twenty percent) of the property rate
applicable for the non-residential purpose. Provided that in respect of
open ground and playing area, the rate applicable for the fully vacant
commercial lands shall be levied.
7
(viii) All the properties or lands seeking exemption under section 152 of the
BBMP Act 2020 shall file an application with the prescribed documents
as per Circular No Spl. Comm (Rev)/PR/1351/2023-24 dated 26-12-2023
and the action thereon shall be taken as per the said Circular.
(ix)
When a property or land is exempted from property tax and any portion
of the property or land is used for any other purposes other than for the
purpose for which the exemption is granted, then for such usage, the
property tax shall be payable at the prescribed rates to such extent and
usage.
(x)
The areas under any covered or stilt parking or multilevel car/vehicle
parking, the tax shall be computed at 50% of the unit area value fixed for
the respective property and land as per this Notification.
(xi)
The tax for the areas used for storage of merchandize like granite, timber,
bricks, tiles and like, shall be computed at 50% of the unit area value for
the respective property and land as per this Notification for non-
residential purpose.
(xii)
The race-courses, golf courses, open areas in bus-stands and other such
open commercial areas shall be levied tax at a rate for their open areas as
prescribed for the fully vacant commercial lands or areas.
(xiii) The open parking areas shall be charged at a rate of 20% of the per square
foot rate payable for the property for residential use for self-use parking
area and 20% of the rate payable for commercial/non-residential under
category (2) for other cases.
(xiv) In case of common areas in any building or apartment, such as manager
office, club house, swimming pool, health club, canteen etc, the property
tax shall be charged at a rate of 50% of the per square foot rate payable
for the property itself. The open spaces and parks therein shall be charged
at a rate as prescribed for the fully vacant lands or areas.
Tushar Giri Nath, IAS
Chief Commissioner
Bruhat Bangalore Mahanagara Palike
Bengaluru
20th February 2024
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Date: 2024.02.20 21:33:50 +05'30'