Building rates up by 40 per cent

Building rates up by 40 per cent
Pay Higher Property Tax
S Kushala | TNN

Bangalore: Looks like the government wants to rake in big moolah even as real estate prices sky-rocket. For buyers, this means a big hike in stamp duty during registration and subsequently property taxes.
After the revision in the guidance value, the government has now revised the building rates to the tune of 40% all over the state. The building rates have been revised following Central Valuation Committee recommendations and came into effect on December 12.
According to the order copy, rates have been fixed for flooring, wood work and roofing of buildings with categories like RCC, granite, marble, vitrified tiles, concrete, teak wood and depending on the location — Greater Bangalore area, other corporations like Mysore, Mangalore, Hubli, Dharwad, Gulbarga, Bellary, CMCs, TMC and panchayats.
The highest slab for Bangalore — Rs 680/sqft for two years — has been revised to Rs 950/sqft. Similarly, the rates for parking slots for multi-storeyed buildings have been revised — Rs 75,000 and Rs 1 lakh for open and closed parking area within BBMP area; Rs 65,000 and Rs 90,000 for other city corporations; Rs 55,000 and Rs 80,000 for CMCs and Rs 45,000 and Rs 70,000 for TMCs.
The building valuation rates is prescribed by the PWD in its Scheduled Rates which is calculated during property registration and also taken into account for property taxes under the Capital Value System (CVS).
While registering the properties, the stamp duty is arrived at by calculating the rates fixed for type of building construction as per the Scheduled Rates. For property tax, the capital value is based on the value of the plot and the building.
“The building valuation rates were not revised for two years. Normally, it has to be in sync with the revision in guidance value which is an annual exercise. With building valuation rates going up, it will automatically hike up the stamp duty,’’ officials said.
RATE SAMPLES
l Buildings with RCC, granite and teak — Rs 950/sqft for ground floor and Rs 900/sqft for first floor (BBMP area); Other places range from Rs 500/sqft to Rs 800/sqft
l Buildings with RCC, marble and teak — ground floor Rs 750/sqft, first floor Rs 700/sqft (BBMP area); other places range from Rs 550/sqft to Rs 700/sqft
l Buildings with RCC, mosaic and iron windows — ground floor Rs 700/sqft, first floor Rs 650/sqft (BBMP area); other areas range from Rs 450/sqft to Rs 650/sqft
l Revised rates implemented from last Wednesday
l 40% hike in building valuation rates
l Rates for parking area revised