With the city corporation finalising the basic tax rates to be used for assessment from 2023-24, the basic property tax rate of government office buildings in the city will drop by 72.5%, whereas tax burden on residential buildings above 300sqm, commercial use buildings, malls ,lodges, resorts, hotels and private hostels will increase.
The civic body council which convenes on Saturday will approve the proposed basic tax rate revision.
In addition to the assessment based on revised basic tax rates, property tax will be calculated with a 5% hike as per the order issued by the state government. According to the order, as per the recommendations of the finance commission a hike of 5% will be applied on property tax annually for five years.
While the civic body has retained the basic tax rate of Rs 16 per sqm for residential constructions upto 300sqm, the new basic tax rate for residential buildings above 300 sqm will be Rs 20 per sqm.
The basic tax rates have been fixed based on the slabs earlier notified by the local self-government department. LSGD has kept the slabs for government office buildings between Rs 10 and Rs 22. Till now, the civic body had followed Rs 80 as basic tax rate for government office buildings.
This drastic revision is set to save a considerable amount of money for the state government. For instance, in 2022-23, the government had paid Rs 2.99 lakh as property tax for the second half of the financial year alone for the Secretariat annexe-1 building. With a drop in basic tax rate the amount is likely to come down by a good margin.
Property tax of commercial buildings will also go up in the city. Commercial buildings upto 100 sqm will be assessed with a basic tax rate of Rs 90, earlier it was Rs 80.
The basic tax rate for commercial buildings between 100-500 sqm has increased from Rs 110 to Rs 120 per sqm. For malls, the basic tax rate has been upped from Rs 150 per sqm to Rs 170 per sqm.
The revised rates will be a relief for the owners of bunks and wayside shacks. The basic tax rate has come down from Rs 80 to Rs 22. For the buildings under industrial occupancy, the basic tax rate has been decreased.
However, lodges and hotels with dimensions above 300 sqm will be assessed at Rs 90 per sqm whereas the earlier rate was Rs 60.
