The Ahmedabad Municipal Corporation has introduced a revised policy affecting parking spaces in commercial complexes and malls. Under this new policy, these establishments charging parking fees will now be required to pay property taxes on their dedicated parking areas. However, the policy offers exemptions for residential properties, including bungalows and tenements with unauthorized parking sheds or sunshades, along with basements' access ramps and runway spaces, which collectively make up about 35% of the total parking area. This move comes after inconsistent application of property taxes for parking spaces in the city, as some properties were exempted based on unclear guidelines. The policy aims to bring uniformity and transparency to parking taxation in commercial settings.
In a recent announcement, the Ahmedabad Municipal Corporation unveiled a new policy that will require malls and commercial complexes within the city, which charge parking fees to visitors, to pay property taxes on their dedicated parking spaces. This policy, officially declared this week, brings about significant changes in the taxation of parking areas. However, under the new parking area policy, property tax will not be imposed on parking spaces in residential properties or commercial properties where parking services are provided free of charge.
The policy exempts residential areas such as bungalows or tenements where temporary sheds or sunshades used for parking, which may be unauthorized, will not be subject to property tax. In addition to this, the total runway space required for the to-and-fro movement of vehicles in the parking areas and access ramps in basements will be exempt from property tax. The civic body has estimated that the total runway space constitutes approximately 35% of the total dedicated parking space.
Prior to this policy, sources within the AMC's taxation department reported that property tax assessors in certain zones exercised discretion, sometimes exempting commercial properties from property tax on their dedicated parking spaces due to a lack of clear guidelines. One reason for this was the lack of a clear policy on which establishments should be charged property tax for their dedicated parking space. Discrepancies were observed in specific municipal zones, where certain commercial properties like malls or private hospitals that charged parking fees were exempted from property tax for their parking areas, while elsewhere, property tax was levied.
To address these discrepancies and provide uniformity in taxation, a circular has been sent to zonal offices for immediate implementation. This new policy aims to ensure that property tax on dedicated parking spaces is applied consistently across the city, bringing clarity and fairness to the taxation of parking facilities in commercial establishments.
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