Bengaluru’s civic body, Bruhat Bengaluru Mahanagara Palike (BBMP), has rolled out a new property tax calculation method for covered and stilt parking spaces, stirring concern among homeowners even as commercial spaces like malls are likely to benefit.
Under the revised Unit Area Value (UAV) system, residential properties will be taxed at 20% of parking space at ₹2 per sq ft for 10 months, amounting to ₹600/month for a standard 150 sq ft parking area. For non-residential buildings, 25% of the parking area will be taxed under the same rate.
Previously, property owners were taxed based on zonal categories (A to F), and parking tax formed about 50% of overall property tax in many residential units. The new uniform method simplifies the system but could hike tax outgo for flat owners, especially in lower-zoned areas.
Experts are raising red flags. Anil Kalgi, Secretary of the Bangalore City Flat Owners’ Association (BCFOA), called the move “unconstitutional”, highlighting that homeowners already pay taxes on shared areas—including parking—under the super built-up metric during purchase. Now, they could end up paying double tax for the same area.
Real estate analysts warn that this change, combined with soaring property prices, could further strain homeowner budgets. While malls may welcome the standardized approach, residents are urged to reassess their tax filings, consider filing appeals if needed, and keep an eye out for possible rebates.
Experts also urge the BBMP to address unauthorized roadside parking, which remains largely untaxed and unmanaged.
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