Property Tax Leviable For Paid Parking, Real Estate News, ET RealEstate

October 12, 2023

AHMEDABAD: Malls and commercial complexes in the city that charge visitors parking fees will now have to pay property tax on dedicated parking space, according to the civic body’s Parking Area Policy declared on Wednesday.

The policy says property tax won’t be levied on spaces in residential properties or commercial properties where parking is free.

“The policy exempts residential areas such as bungalows or tenements where temporary sheds or sunshades — which may be illegal — have been put up for parking space. These spaces will not be charged property tax,” said Jainik Vakil, chairman of the Ahmedabad Municipal Corporation’s revenue committee.

Another technical aspect that Vakil clarified was that the total runway space — for to and fro movement of vehicles in the parking spaces and access ramps in basements — will be exempt from the tax. “We estimated that the total runway space makes up about 35% of the total dedicated parking space,” Vakil said.

Sources in the AMC’s taxation department said that, in a couple of cases, zonal property tax assessors were using their discretion to exempt commercial properties from tax on dedicated parking space. “One reason was the lack of a clear policy on which establishment should be charged property tax for dedicated parking space,” said a senior AMC official.

The official added that after field visits, officials realized discrepancies in certain municipal zones, where certain commercial properties, such as malls or private hospitals, which were charging parking fees, were exempted from property tax for the parking area, while at other places property tax was being levied.

A circular has been sent to zonal offices for immediate implementation.

  • Published On Oct 12, 2023 at 09:31 AM IST

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