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The KMC is set to increase property tax rates for residential buildings and flats due to a recent revision of unit area values under the Unit Area Assessment scheme. Approximately 35 percent of taxpayers have already transitioned to the UAA system. The mayor-in-council has approved the revision, which will affect nearly 9 lakh property owners. The KMC's initial proposal for steep tax hikes was reconsidered at the request of the state government. The revised rates will be discussed at an upcoming KMC house meeting. The changes aim to establish equitable and sustainable property tax policies while providing relief to refugee rehabilitation zones.
Property owners in Kolkata Municipal Corporation (KMC) areas are facing the prospect of increased property taxes, a direct consequence of the recent comprehensive revision of unit area values within the framework of the Unit Area Assessment (UAA) scheme. The KMC assessment department is spearheading this initiative, which the mayor-in-council has subsequently ratified, and it is poised to increase property tax rates across all categories of residential buildings and flats. Approximately 35 percent of taxpayers have already transitioned to the UAA system for house tax assessment, and the rest are receiving notifications to do the same. This rate adjustment will impact nearly 9 lakh property owners, according to officials from the KMC revenue department.
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The municipal administration, grappling with its fiscal constraints, had previously resolved to embark on a comprehensive overhaul of the property tax structure. However, the state government intervened, urging a re-evaluation of the initially proposed substantial rate hikes. The ongoing revision has been meticulously formulated in close collaboration with the state's urban development and municipal affairs departments. A senior assessment department official has communicated these steps to ensure the final structure's equity and sustainability. The revised proposal is slated for discussion at the upcoming KMC house meeting. Under the framework of the UAA scheme, the city's expansive array of properties, comprising both land and buildings, have been divided into seven distinct categories and zones based on location and amenities readily accessible to residents.
Notably, the base unit area value for category A has undergone an upward revision, progressing from its prior standing at Rs 74 per sq. ft per annum to its present valuation at Rs 81 per sq. ft per annum. Category A encompasses properties situated in some of Kolkata's most prestigious and sought-after residential enclaves, including but not limited to Park Street, Theatre Road, Loudon Street, Alipore, and select segments of the Ballygunge-Gariahat Road. Similarly, the base unit area value for category B has experienced a noteworthy uptick, ascending from Rs 56 to Rs 62, and category C has seen its base unit area value appreciate from Rs 42 to Rs 46. Category D, too, has witnessed an increase from Rs 32 to Rs 35. By contrast, adjustments concerning categories E, F, and G remain relatively modest in scale, reflecting an overarching commitment to striking a delicate balance that is both judicious and fair.
The civic body has opted to institute specific relief measures targeting residents domiciled within zones that have been officially designated as refugee rehabilitation areas. In conclusion, the ongoing adjustment in property tax rates within KMC areas, facilitated by the meticulous revision of unit area values, underscores the municipality's unwavering commitment to equitable and sustainable fiscal policies. While property owners will undoubtedly be impacted, the revision strikes a delicate balance between fiscal responsibility and fairness, ensuring that the city's residents can continue to enjoy the amenities and services provided by the municipality without undue financial burden.
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