Wards 1 to 141: KMC eyes revision of base unit area value of property tax

Kolkata: In a bid to increase its property tax collection, Kolkata Municipal Corporation (KMC) has proposed to reconstitute the Municipal Valuation Committee (MVC) for revising the base unit area value of property tax under Unit Area Assessment (UAA) for wards 1 to 141.

According to KMC, the MVC is reconstituted every five years for determining the final base unit area value of land/building. However, due to certain obstacles, it was not reconstituted by March 31, 2022. Hence, the civic body is now seeking intervention of the state government to form the committee for revision of assessment with effect from 2022-23 retroactively.

The UAA method of property tax evaluation, effective since May 1, 2007, and revised from April 1, 2017, divides KMC’s 141 wards into 293 blocks categorised from A to G based on predefined criteria (e.g., age, location, occupancy, structure, usage). The MVC’s role is to recommend a “scheme” for determining the final base unit area value of land and buildings, which remains in force for five years unless revised.

It was learnt that the proposed amendments to the KMC Assessment Rules, 2017, approved in January 2023, aimed to adjust base unit area values, potentially increasing residential property taxes and reducing commercial property taxes.

Meanwhile, the civic body intends to extend the UAA scheme to the wards 142, 143 and 144. These wards were previously outside KMC jurisdiction during the initial implementation of the UAA. For these three wards, a MVC was recently formed.

A KMC official said that such measures, when implemented, will increase property tax collection which in turn will bolster KMC’s revenue, supporting infrastructure and service improvements.

The MVC sought to be constituted will be led by the chairman (municipal commissioner).

It will have two to six members appointed by the state government, including a joint secretary-level officer (or higher), a West Bengal Audit and Accounts Service officer with specified experience, an economist or statistician, a chartered accountant, an expert in taxation and valuation, an expert in law and urban governance. The member secretary will be nominated by the chairman from among the members.