BBMP

property tax

gardens

Venkata chalapathy

Umanand Rai

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plans to target common utility space for ramping up revenue by 40 per centEyeing a 40 per cent increase in revenues, the Bruhat Bangalore Mahanagara Palike (BBMP) has decided to crack the whip against flat owners who have been getting away by paying lesserafter computing it only on the basis of carpet area. BBMP Administrator T M Vijay Bhaskar told Bangalore Mirror: "The flat owners should pay property taxes on the basis of their super built-up area (which is built-up area plus proportionate area of common areas) they own, but many of them reduce their tax amount by calculating it only on the basis of carpet area (the actual usable area minus the wall thickness). We want everyone to pay on the basis of their super built-up area."Bhaskar maintained that the BBMP's property tax collection capability would witness a 40 per cent jump if the common areas are brought under the tax net.Last year, BBMP collected just Rs 1,800 crore against a target of Rs 2,500 crore. This year (2015-16) it has set a target of Rs 2,900 crore. In the first two months itself (April and May), BBMP has collected Rs 1,101.24 crore – Rs 300 crore more than the revenue collection of the corresponding period of 2014-15. Now with BBMP hoping to rein in flat owners who have not factored in the common areas such as staircases, walkways, children's play area, swimming pool, gym andwhile declaring their property tax under the Self Assessment Scheme (SAS), the administrator hopes to cross the set revenue target.The BBMP Administrator has ordered all the tax inspectors and revenue inspectors in each ward to survey the apartment complexes and ascertain the quantum of payments being made.Out of 16 lakh properties in the city, the number of flats would add up to around four lakh. In fact, the exercise has already started in Mahadevapura and Bommanahalli zones – the tech-corridors which are dotted by apartment complexes. "We have ordered our men to raise a fresh demand notice for property tax if there are any discrepancies,” Bhaskar said.He added: “Every flat owner in the apartments is using the common facilities. They are entitled to pay taxes to the BBMP for the same; but the common areas are conveniently left out of the tax net. This came to the fore during the recent ‘khata adalat’ held in Mahadevapura zone when we learnt that many flat owners were not paying taxes for the common areas.”Deputy commissioner (Revenue) Msaid that during a meeting held with revenue officials, the administrator directed all the officials to bring every such apartment under the tax net as most of them have not declared their respective common areas under the SAS.He said, “Actually, all areas open and constructed portion – including the common usage areas – fall under the property tax. The officers were not looking at this as, according to the SAS, the property owners should declare their details of the property. This portion of the property was not attended. Now the administrator has asked us to conduct the survey and issue the fresh demand of the tax.”The common usage areas include lobbies, corridors, stairways, ramps, elevators, store rooms, gymnasia, swimming pool, club houses or other such areas. These will be measured by the BBMP revenue and tax inspectors. Then, the area will be proportionally divided amongst all the flat owners on the basis of their undivided share in the property., joint commissioner (Mahadevapura zone) said, “We along with the zonal town planning assistant director and revenue staff are conducting survey of the apartments. Venkata chalapathy said “We are not imposing any burden on the flat owners. Although the flat owners might own different dimensions of flats in an apartment all of them use common utility areas, equally. All of them are eligible to pay the taxes.”Each flat owner has the details of the dimension of his super built-up flat in his sale deed executed by the builder. This apart, during issuance of occupancy certificate (OC) has the details of all common area, lift, store room, generator and kept reserved for other usages. Suppose the OC has details of 10,000 sq ft area in a 10-flat apartment and all the 10 flat owners have each declared the dimension of 9,000 sq ft area under the property tax net, then the difference is 1,000 sq ft. That difference will be proportionately divided amongst the 10 flat owners.Apartment owners who are paying the property taxes according to the carpet areas. They are not including the share of the common areas. There might be difference of 10 to 20 per cent which is not included in the property tax. Every flat owners owns the common share in the land, but they don’t pay taxes according to it"Those properties sold under the banner of CREDAI and the buyers who bought them are paying the property taxes for super built-up areas. But there are several builders and flat owners who are violating it. The BBMP has all the right to ask the owners to pay the property taxes on their super built-up areasProperty tax payers need to pay according to the executed sale deed. There are three kinds of categories – carpet area without wall thickness; built-up area with wall; and super built up area having all the common areas. If the BBMPis demanding taxes according to the super built-up area then they are doing the right thing