BHUBANESWAR: In light of recent Supreme Court observations regarding the conversion of residential buildings into commercial spaces, the Bhubaneswar Municipal Corporation (BMC) plans to conduct a door-to-door survey starting in August to accurately categorize residential and commercial properties.
Currently, BMC lacks a detailed inventory of these properties, which hinders their ability to evaluate the holding tax—levied at different rates for residential and commercial entities. Officials pointed out that the absence of data on commercial properties adversely affects BMC’s revenue, as taxes for commercial holdings are considerably higher than for residential ones.
“Our records indicate a total of 1.19 lakh holdings noted in 2024, but this number may exceed 2 lakh now, as numerous residential buildings have been adapted for commercial purposes,” stated BMC Deputy Commissioner Suryamani Pattjoshi.
Pattjoshi explained that the survey will aid various departments—including enforcement, planning, and traffic authorities—in formulating appropriate strategies. “In areas where commercial activities have emerged, influencing foot traffic and vehicle movement, adjustments will be made to alleviate congestion. Any deviations from the original plan will prompt the planning department to take action, while the revenue department will compute holding tax based on commercial rates,” said a BMC official.
BMC added that new constructions in the city are currently not included in the tax assessment and emphasized the need for assessing overlooked properties to broaden the tax base.
To facilitate this, BMC has hired a private agency that will send surveyors to identify and classify new properties as either residential or commercial, creating a comprehensive database, Pattjoshi noted.
BMC officials mentioned that guidelines have been issued to zonal offices to support the private agency logistically, ensuring the compilation of an unassessed property list for tax appraisal.
Holding tax is a vital source of revenue for BMC. Apart from educational institutions, government, and commercial establishments, residential properties also contribute annually based on assessments made by the civic body.
Officials stated that for the fiscal year 2025-26, the civic body aimed for a collection of Rs 200 crore in holding tax but only managed Rs 120 crore, with around Rs 80 crore still owed by defaulters. In March alone, BMC gathered Rs 53 crore, reflecting the success of their extensive drives, publicity of defaulter lists, and follow-ups during that month.
