PATNA: The Patna Municipal Corporation (PMC) has increased the Annual Rental Value (ARV) for properties by 15%—the first adjustment in nearly 30 years. This change, effective from June 24, 2026, aims to enhance civic revenues to improve infrastructure, including roads, drainage, sanitation, and street lighting. Additionally, PMC is offering a 5% discount for lump-sum property tax payments made by June 30 for the fiscal year 2026–27.
Average daily receipts have surged from approximately ₹50 lakh to nearly ₹70 lakh. On Thursday alone, the civic body collected over ₹68 lakh from 1,480 properties by 3:33 PM—a significant increase following the implementation of the new rates.
PMC officials indicated that the ARV had remained at the same level for over three decades, despite legal requirements for regular updates. Mayor Sita Sahu mentioned, “The increased revenue is expected to bolster civic finances and enhance spending on infrastructure projects.”
She linked the rise in collections to the ARV increase and a rush among taxpayers looking to benefit from the 5% discount before the June 30 deadline. This rebate initiative, applicable for the financial year 2026-27, has resulted in heightened compliance and participation over recent days.
The revised ARV, which is crucial for property tax calculations, took effect on June 24 following approval from the urban development and housing department. The increase is consistent across all property categories within PMC limits and is the first increase since 1995, signaling an end to a 30-year stagnation.
Data from Thursday afternoon revealed that the New Capital Circle recorded the highest revenue, generating over ₹21 lakh from 314 properties. Following closely was the Pataliputra circle with around ₹17 lakh from 436 properties, while Kankarbagh circle amassed ₹13 lakh from 278. Bankipur circle contributed over ₹9 lakh from 200 holdings, Azimabad circle added more than ₹2 lakh from 172 holdings, and Patna City circle brought in ₹3 lakh from 80 holdings.
Another official noted that the revision was conducted under Section 127 of the Bihar Municipal Act, 2007, which requires a minimum 15% increase in rental values every five years. The Act also allows for revisions within that period, subject to state approval. Although PMC’s empowered standing committee and municipal boards approved the proposal in 2021, implementation had been postponed pending state endorsement.
