Patna: Property owners in Patna will now have to pay more in holding tax after the Patna Municipal Corporation (PMC) implemented a 15% increase in property tax rates across its jurisdiction.
The revised rates came into effect on Wednesday following approval from the Urban Development and Housing Department on June 22. The civic body subsequently issued a formal notification enforcing the new rates.
The increase applies to all categories of properties, including residential, commercial and mixed-use buildings located on prime roads, main roads and other roads within the municipal limits.
Under the revised structure, holding tax rates calculated on a per-square-foot basis have increased by 15%. For instance, a property owner who previously paid Rs 1,000 annually as holding tax will now pay Rs 1,150.
First Major ARV Revision Since 1995
According to municipal officials, this is the first revision in the Annual Rental Value (ARV) framework of Patna Municipal Corporation since 1995.
The PMC’s Empowered Standing Committee and the Municipal Board had approved the proposed increase in 2021. However, implementation required approval from the state government before the revised rates could be notified.
The revision has been carried out under the provisions of the Bihar Municipal Act, 2007.
What the Law Says
Section 127 of the Bihar Municipal Act mandates that the rental value of different categories of holdings, determined on the basis of built-up area, must be revised by at least 15% every five years.
The legislation also allows urban local bodies to amend rental values and tax rates during the five-year cycle after obtaining prior approval from the state government.
Revenue Expected to Rise
PMC officials said the increase is expected to strengthen the corporation’s revenue base and improve its capacity to undertake civic development projects.
The additional funds generated through the revised holding tax will be used to improve urban infrastructure, sanitation services, road maintenance, drainage networks, street lighting and other public amenities across the city.
Rebate Available Until June 30
The municipal corporation has also announced an incentive for taxpayers.
Property owners who pay their holding tax for the financial year 2026-27 in a single instalment by June 30 will receive a 5% rebate on the total tax amount, according to the civic body.
The rebate is aimed at encouraging timely tax payments while helping the corporation improve revenue collection at the beginning of the financial cycle.
