Collect property tax based on guidance value

BENGALURU: The Fifth State Finance Commission has recommended that all urban local bodies (ULBs) should levy, revise and collect property tax based on the guidance value revised from time to time to improve their own source revenue. “It is observed that the own source revenue of ULBs has not improved significantly,” it said.

The Commission also suggested the BBMP to early adopt the latest guidance value-based assessment of property tax and enhance the efforts of the agencies to collect the desired non-tax revenue. Furthermore, the Karnataka Local Fund Authorities Fiscal Responsibility Act 2003 came into force in April 2021. But relevant rules have not been made yet for ULBs, although rules have been made for BBMP. The Commission has recommended the State Government to frame rules under the Act with respect to ULBs.