BENGALURU: Karnataka Home Buyers’ Forum has appealed to the Bruhat Bengaluru Mahanagara Palike (BBMP) Chief Commissioner to ensure that revenue inspectors, while calculating the property tax for flat owners, consider the carpet area of the flat. It stated that Real Estate Regulatory Act 2016 mandates the selling of the flats based on carpet area.
The draft notification issued recently has stated that property tax will be calculated based on the guidance value of the property per square feet per year.
“Property tax is to be charged for the ownership of the property. Flat owners own the carpet area in an apartment,’’ said Dhananjaya Padmanabhachar, Sanchalak, Karnataka Home Buyers Forum.
The draft notification (section 8 (xiv)) mentioned that 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. It has also stated the open spaces and parks therein shall be charged at a rate as prescribed for the fully vacant lands or areas.
Padmanabhachar said that common areas are owned by the association of flat owners after the Transfer of Common Areas as per section 17 of RERA 2016. “Please ensure this portion of the property tax is being charged to the owners of the property (Association after transfer, promoters before transfer). Please collect Certificate of Registration of the association issued by the competent authority as proof of identity and conveyance deed transferring common areas to association as proof of ownership of the common areas,’’ he said in the memorandum.
The draft notification (section 8 (x)) mentioned that 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. “This comes under common areas in an apartment and car parking ownership does not fall under flat owners. This should be included for taxation to association (After transfer of common areas)/promoters (before transfer of common areas),’’ he said.
He said that the BBMP revenue officers are retaining the names of the previous land khata owners after flat khatas are being created thereby creating dual ownership of khata on the land.
“Either BBMP should make land khatas null and void after flat khatas are being created or ensure all flat owners’ names get recorded in land khata for the undivided share of interest they own in the land as per sale deed,’’ he said.
Commander Surendra (retired) said that collection of property tax based on guidance value is not correct.
“The BBMP is a service provider. It does not provide services to the property owners based on guidance value. For example, the guidance value of a property in the Central Business District area is different from the guidance value of a property at Yelahanka. The BBMP is providing the same service – collecting garbage – at CBD and Yelahanka. The BBMP officials are happy in collecting property tax,’’ he said.
