Property tax set to go up in municipal areas

Cabinet decides to levy tax on vacant sites too

Property tax is set to go up in all municipal areas coming under Karnataka Municipal Corporation Act, 1976, as the Cabinet has approved amendment to the Act based on the Centre’s direction. The tax is set to be revised in Bengaluru too and government has traded for increase in property tax against user fee which now stands dropped.

The Cabinet on Wednesday decided to bring an amendment to sections 108, 109 and 109 A of Karnataka Municipal Corporation Act to revise property tax on residential houses and vacant sites in municipal areas based the guidance of the Union government. “We are keeping user fee pending and increasing property tax. Till now vacant sites had been kept out of the purview of property tax. This is, however, being changed now,” said Law and Parliamentary Affairs Minister J.C. Madhuswamy , who briefed presspersons.

“The amendment had been mandated by the Union government and we had to do it before January 25. This will help the State to increase borrowings from institutions.”

He said that the property owners would get some relief as the basis of calculating property tax has been reduced from 50% of the guidance value to 25% of the guidance value. Further, vacant sites below the dimension of 1,000 sq ft. have been exempted from the tax.

Houses for police personnel

The Cabinet also approved construction of 9,524 homes for police constables and 510 homes for police sub-inspectors across the State. In all, 10,034 homes will be constructed over the next five years under the police housing scheme at a projected cost of ₹ 2,000 crore. “This is an annual scheme and project will be completed in five years,” the Minister said.

The Cabinet approved ₹5 crore towards subsidy released to silk growers during COVID-19 times; and release of ₹5 crore this year towards the construction of 325-ft.-tall bronze statue of Saint Basaveshwara being installed on Sri Murugharajendra Mutt premises in Chitradurga.The government had approved ₹20 crore towards the statue project of which ₹10 crore had been released already.

A ₹25 crore cultural centre at Banandur village in Ramanagaram district in memory of late Balagangadharanatha Swami of Adichunchanagiri Mutt has also been approved, the Minister added.

Among other decisions, the Cabinet approved release of ₹200 crore for filling up of 96 tanks in Tiptur taluk of Tumakuru district from Hemavathy and Yettinhole projects; and upgradation and modernisation of 155 out of 270 ITIs in the State at a cost of ₹4,636 crore, which will be executed by Skills Development department in collaboration with Tata Technologies. “Tata Technologies will bring 88% of the share. The government will stand guarantor for ₹657 crore for loans in nationalised banks. The government will have to spend ₹220 crore towards infrastructure development.”

The government has approved changes to cadre and recruitment rules of employees in persons with disabilities and senior citizens department to expand on scope for promotion avenues.

The government has also extended the lease period for 4.24 acres given to International Flower Auction Board, Bengaluru, till 2030-2031 besides deciding to increase the equity in the board till 2030-2031.

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