Property Taxes slated to increase with BBMPs proposal to include common area as well for computation
Are you tired of the high property tax, that you have to pay every year? Unfortunately, this will only increase further with BBMP proposing a plan to charge property tax on the common areas in commercial and apartment complexes. Common areas are playgrounds, swimming pools, gardens/lawns, parking spaces etc. All this while, flat owners in a way were paying less tax, says BBMP, as taxes were only being calculated as per the carpet area which is the actual usable area minus the wall thickness. However, since the common areas are used by all on an overall basis, the tax thus paid is comparatively less.
Considering this fact along with BBMP’s need for a higher influx of revenue where they are eyeing a 40% increase, they have planned to charge the common areas used by property owners in their gated communities. Also, club houses and community halls would be taxed separately as communities rent these out for functions and other commercial purposes. In other words these will be treated as any other commercial building and will be taxed in the same manner, the way any supermarket or a mall is charged for property tax.
If you are still wondering about calculations well here’s an example. If you are living in a community with 20 flats, each having a sq ft area of 10,000 for which each flat owner is paying tax individually. Now there are common areas like store room, gym, lawns etc. which all together takes up a sq ft area of 15,000. This 15,000 sq feet area would be proportionately divided among the 20 flat owners.
BBMP is currently only doing the required surveys and has ordered all the tax inspectors and revenue inspectors in each ward to survey the apartment complexes and ascertain the quantum of payments that requires to be made. The survey has already started in Mahadevapura and Bommanahalli zones and will soon reach the other parts of the city. Also, BBMP is studying the tax calculation on common areas made in other metropolitan cities before bringing about this move in a full-fledged way.
However, many apartment owners are not taking this change happily and feels that maintenance already covers the tax on common areas.
Do you think BBMP has made a fair move or is it unnecessary? Do let us know your thoughts on this in the comments section below.
Source:http://www.deccanherald.com/content/483211/tax-likely-apartment-pools-parking.html
