Property owners in Bengaluru get relief as assembly passes BBMP bill amending 50% reduction of tax penalty

In a move aimed at providing relief to property owners in Bengaluru, the Assembly has passed the BBMP (Amendment) Bill, 2024, which promises a substantial 50% reduction in penalties related to property tax arrears. This decision comes amidst a backdrop of Deputy Chief Minister DK Shivakumar's efforts to push the bill forward, despite opposition protests from the BJP-JDS, who staged a sit-in over ongoing lawyers' protests.

Speaker UT Khader facilitated the passage of the bill through a voice vote, marking a crucial step towards easing the burden on citizens grappling with property tax issues. Shedding light on the implications of the bill, Deputy Chief Minister D.K. Shivakumar shared that the exemptions provided under the legislation are estimated to relieve citizens of Bengaluru from a staggering burden of around 2,700 crores in tax and penalties, with an additional benefit of approximately one thousand crores accruing to the corporation in terms of property tax collection.

Bengaluru’s BBMP announces good news for Taxpayers: 50% off on property tax arrears!

Key provisions of the bill include special exemptions for economically disadvantaged sections, with no interest or penalties imposed on government housing scheme properties and slum buildings. Moreover, properties utilized for self-use, spanning up to one thousand square feet, are fully exempted from penalties. For residential and mixed-use properties, including both residential and commercial spaces, calculations will now be based on the previous five years alone, disregarding any further years. Notably, interest penalties for periods exceeding five years have also been waived.

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The BBMP's decision to temporarily halt the imposition of hefty fines and interest on property tax arrears aligns with the introduction of the BBMP Act (Amendment) 2020 during the legislative session. Under this amendment, property owners with outstanding tax liabilities to the BBMP, as well as those providing false information under the Self-Declared Property Tax (SAS) system, were liable to receive notices accompanied by significant fines, interest charges, and even property confiscation.

The BBMP's revenue department, acting following the BBMP Act 2020, issued notices to over 60,000 properties and sealed more than 10,000 properties, sparking public outcry. In response to mounting grievances, the government proposed further amendments to the BBMP Act, aiming to address concerns raised by citizens and stakeholders alike.

• Karnataka
• BBMP
• Property tax penalty
• Bill
• Amendment