KMC’s bill, owner’s shock: Kolkata responds after tax revaluation

KOLKATA: In an attempt to augment revenue, the Kolkata Municipal Corporation (KMC) assessment department has started conducting general revaluation (GR) of residential buildings which have so far, remained pending, in some cases, since 2000. Based on the calculation of pending GRs, the civic body’s revenue department has started sending property tax bills to owners of residential buildings in some parts of north Kolkata. It has come as a shocker to many who now want an exemption from paying a ‘hefty and unjustified’ amount.Hefty because after calculation of two or three consecutive GRs, the annual valuation of the residential buildings has gone up by 30%, which leads to a further increase in property tax amount. According to rules, KMC needs to conduct a GR exercise every six years. Based on the change in the nature of properties, the tax amount goes up or gets reduced. If there is no change in a residential house (addition, alteration, or making commercial uses), the annual valuation of a residential building goes up by 10%. So, calculating three GRs at a time means an increase by 30%.Take the case of Ramen Dhar, a resident of BT Road. Dhar has recently got a bill in which KMC has asked him to accept a hike in property tax based on calculations of two GRs (since 2010). “As annual valuation of my building is above Rs 18,000, I will need to pay an enhanced tax. This is not valid and I have decided to appeal to the municipal assessment tribunal against such decision,” said Dhar. According to rules, the increase in the tax amount is calculated after imposition of a 40.5% hike in AV after a GR is done if the value of the AV of a residential building is Rs 18,000 or more.However, such a hike in the AV and imposition of subsequent property tax is not legal, pointed out a lawyer in the municipal tribunal. According to the lawyer, the KMC assessment department can’t calculate three GRs at a time and compel the owner to pay property tax based on pending GRs. And the process is also erroneous, he pointed out. “KMC needs to send an inspector to the house each time a GR is done. And based on the change in the property, a tax hike is calculated. But without sending an inspector to take note of any changes, how can the KMC calculate a hike in tax simply based on pending GRs?” asked the lawyer. According to a KMC assessment department official, the civic brass was bent on augmenting revenue and at the same time clearing the pending GRs so that the property owners could be brought under the ambit of unit area assessment system.