In a significant shift to property tax rules, the Bruhat Bengaluru Mahanagara Palike (BBMP) has updated how property tax is applied to parking spaces in residential and commercial buildings across the city. This new approach is intended to streamline calculations and reduce the overall tax load for parking areas.
According to the newly updated Unified Annual Value (UAV) system, the tax calculation for parking spaces will now differ based on the type of property—residential or commercial. For residential buildings, property tax for a 150 square feet parking space will be computed at 20% of the total value. The total value is derived by multiplying the area by 10 months and a rate of ₹2 per square foot, leading to an annual tax of ₹600 (20% of ₹3,000).
For commercial properties, the tax rate is slightly higher. A 150 square feet parking space will be taxed at 25% of the total value, using a rate of ₹3 per square foot. This brings the annual tax to ₹1,125 (25% of ₹4,500).
These changes are expected to simplify the tax process while lowering the financial burden for property owners. The new tax rates are now in effect, and property owners are advised to consult the updated tax structure for accurate calculations.
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