Patna: The Patna Municipal Corporation (PMC) has revised the Annual Rental Value (ARV) used for property tax assessment by 15%, affecting nearly 3.05 lakh residential and non-residential holdings across the city. The increase marks the first revision in ARV after nearly 30 years.
The latest revision comes just three months after commercial properties witnessed a significant increase in tax multipliers from April 1, 2026, prompting criticism from property owners, traders and elected representatives. They argue that the combined effect of the two decisions will eventually increase rents, business costs and the prices paid by consumers.
Residential tenants may face higher rents
Under the existing property tax rules, residential buildings used for rental purposes attract a 1.5 multiplier. With the ARV now increased by 15%, landlords are expected to pay higher property tax.
Many property owners believe they will have little option but to increase monthly rents to recover the additional expense. If that happens, middle-class families and students living in rented accommodation across Patna are likely to face a higher financial burden.
Senior citizen landlord worries about losing tenants
Station Road resident Suresh, who depends on rental income to run his household, said the increase has placed him in a difficult position.
According to him, raising rent could force tenants to vacate the property, while absorbing the higher tax himself would reduce the income he relies on as a senior citizen.
Traders say business costs will rise
Hotel operator Jitendra Kumar criticised the civic body’s decision to increase property tax twice within three months.
He said businesses cannot continue absorbing rising expenses indefinitely and may have to increase service charges by 10–25%. He added that traders are considering legal action and may also stage protests if the decision is not reconsidered.
Electronics shop owner Gaurav Kumar said businesses are already facing intense competition from online marketplaces while earnings remain under pressure.
He argued that increasing property tax despite declining business income would only add to the financial difficulties faced by traders.
Shopkeepers fear sharp increase in rent
Grocery shop owner Manoj Kumar claimed that his landlord has already demanded almost double the rent after the latest tax revision.
He said the additional expense would make it difficult for small businesses to manage household expenses, children’s education and day-to-day operations unless the decision is rolled back.
Commercial properties already saw higher tax from April
Earlier this financial year, the Bihar government revised property tax multipliers for commercial establishments under the Bihar Municipal Act, 2007.
The revised structure includes:
- 2.0 multiplier: Hotels, malls, marriage halls, health clubs, gyms, private hospitals, banks, insurance companies, financial institutions and large warehouses.
- 1.5 multiplier: Showrooms, shopping malls, restaurants, multiplexes, coaching institutes, guidance centres, nursing homes, clinics, diagnostic centres, private schools and colleges.
- 1.0 multiplier: Non-commercial government offices.
- Exempt: Religious and cultural institutions.
The newly announced 15% increase in ARV has now been added to these revised tax calculations, further increasing the overall tax liability for many commercial property owners.
Ward councillor opposes fresh revision
Ward No. 28 councillor Vinay Kumar Pappu said commercial property owners had already been burdened by the tax multiplier revision implemented from April 1, 2026.
He alleged that the latest increase places another financial burden on traders and property owners and claimed the civic body is preparing to hand over property tax collection to a private agency, which would benefit from higher tax collections.
The councillor also questioned the corporation’s authority to classify properties according to business activity when, according to him, many traders have not been issued trade licences by the municipal body.
Civic decision sparks wider debate
The latest property tax revision has triggered concerns among landlords, tenants and business owners over its likely impact on housing costs and commercial operations.
While the municipal corporation views the revision as part of its revenue framework, traders and local representatives have demanded that the latest increase be withdrawn, warning that repeated tax hikes will ultimately be passed on to residents through higher rents and service charges.





















