Bengaluru, 20 Feb

Karnataka Legislative Assembly passed BBMP Property Tax (Amendment) Bill, 2024, on Tuesday, bringing about a relief to property owners in Bengaluru city limits.

This Amendment Bill will result in a 50 per cent reduction in penalties on property tax dues, saving Bengalureans a whopping Rs 2,700 crores.

Deputy Chief Minister DK Shivakumar, who is also the Bengaluru City Development Minister, tabled the Bill in the Assembly's post-lunch session. According to the Bill, the penalty amount will be halved, and BBMP will be able to collect penalties worth Rs 1,000 crores.

This move is expected to benefit a total of 13-15 lakh people in Bengaluru city, including 5.51 lakh taxpayers, 5-7 lakh people outside the property tax bracket, and 3 lakh partial property taxpayers. The Amendment Bill also has a provision for a special rebate to the poor segments of society. Government residential buildings and buildings in slums are exempt from property tax penalties. Buildings up to 1,000 square feet that are used for personal purposes are also exempt from property tax penalties.

Under the Bill, penalties on residential and mixed-use properties will have to pay property tax penalties only for a maximum period of five years, regardless of the default duration. Interest has been waived off for dues beyond five years.

“This is a taxpayer-friendly amendment. We have brought this Bill to help the common people, though it is a burden on the government,” said Shivakumar.

The previous BJP government had passed the previous Amendment Bill, which doubled the penalties on property tax dues, resulting in a burden on property tax payers.