BBMP (Bruhat Bangalore Mahanagara Palike) has proposed a plan to charge property tax on the common areas in commercial and apartment complexes. The common areas will include all facilities such as playground, parking space, garden, gym, pool or lobby. As a result, it really doesn’t matter if the common area is owned by an individual or an apartment association, the owner has to pay the tax.
BBMP is expected to start charging this tax only after one or two years as it wants to conduct an extensive survey of properties in Bangalore.The agency is expecting at least a 30% hike in its revenue stream with this drive.
Sources from BBMP revealed that even club houses 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.
It has come to BBMP’s notice that presently apartment owners are paying property tax only based on carpet area (actual usable area) and not paying any tax for the common areas.BBMP expects a significant boost in its revenue stream if the proposed plan is approved and the residents start paying for common area as well.
The apartment owners are not taking this proposed plan well. An apartment owner from Sarjapur revealed – “Why should I pay additional property tax on common area? I am already being burdened with apartment maintenance charges and property tax on carpet area. BBMP should think of the resident welfare before proposing such plans”.
BBMP is currently also studying how the tax on common areas is being charged in other metropolitan cities, sources added.
From your kids playing in the park to you working out in the gym , everything just may get attached with a higher price!