Introduction to Property Tax Mapping & Information Systems
Property tax is a primary source of revenue for Urban Local Bodies (ULBs) within India to undertake essential functions such as providing infrastructure, sanitation, and other public services. To be able to levy, collect and manage property taxes effectively, ULBs must utilize accurate records, provide processes that allow for transparency, and have ways for citizens to access these systems. Property Tax Mapping and Information Systems usually connect various spatial and non-spatial information systems, typically utilizing a Geographic Information System (GIS)-based digital platform to provide property mapping and property tax assessment, and improve property tax collection. In the State of Uttar Pradesh, web-based programs such as Bhulekh UP assist in these systems by providing ownership and land record information that is often pivotal to properly verifying property taxes.
What Is a Property Tax Mapping & Information System?
Defining the System
Property Tax Mapping & Information Systems are digital platforms that combine geographic information systems and property tax records to manage and visualize tax information. It maps the properties using unique identifiers for tax purposes (e.g. Property ID (PID)), which are linked to ownership details, tax assessment data, and tax payment information. For example, a property in Lucknow with a value of ₹ 50,00,000 could have a PID recorded in the system, and the annual tax liabilities of ₹ 50,000 could be documented in the system. These systems allow for ULBs to keep an inventory of all properties in their jurisdictions, and keep log of property tax processing and assessment processes.
Key Components
The system consists of the following components:
- GIS Mapping: Cartographically displays property plots, locations and tax zones on maps, and uses an interactive map interface.
- Property Database: Contains detailed information on properties, such as owner names, type of properties (residential versus commercial), and information on outstanding tax dues.
- Tax Assessment Tools: Helps assess taxes based on area, type of construction and location.
- Public Access Portals: Provides citizens with access to view details on tax dues, exercise self-assessment and make online payments.
At the state level in Uttar Pradesh, Bhulekh UP provides ownership data in the form of khasra and khatauni records, ensuring accurate ownership data for tax revenue.
Why Property Tax Mapping Systems Are Important
Enhancing Revenue Collection
Property tax revenues are the largest source of raised revenue for Urban Local Bodies (ULBs). In larger cities such as Lucknow, property tax revenues often exceed ₹10,00,000,000 in a year. GIS systems can be valuable in this regard by tracking, and capturing all unmapped properties, and reducing tax avoidance. For example, by simply digitizing 20 lakh properties and given Bangalore’s experience in the Delhi governments generally positive experience with G-TRANS system which stands for GEPTIS, expands on the basement digitizing properties from receipt and recording for taxing all properties.
Promoting Transparency
GIS systems open up the tax record, reducing tax, transaction costs, and reliance on transfer intermediaries. Instead of having the owner of a plot argue their property is worth ₹30,00,000 and the agent is charging them ₹5000 to 10,000. By increasing transparency of the records it increases the incentive for property owners to trust the property value, pay their taxes and upfront reduce any abstraction related to the ownership and transaction process they may have to face.
Improving Efficiency
Manual tax assessments consume valuable time and can be erroneous. Geographic Information System (GIS) technology can calculate taxes, reducing the need for field visits. For example, a ₹1,00,00,000 commercial property can be verified by a tax inspector online, instead of going to the property for ₹20,000 in surveys, while saving valuable time and resources.
How Property Tax Mapping Systems Work
Data Collection and Mapping
Urban local bodies (ULBs) rely on ground surveys to collect information to create property attributes, such as the size of the plot, kind of construction(s) on the site, and ownership of the property. Geographic Information System (GIS) technology allows urban local bodies (ULBs) to collate and overlay this information on a base map such as a satellite map using Aerial Photography.
Each property should have a unique identifier, such as a Parcel Identification (PID) number or, if in Uttar Pradesh, a Khasra number. For example, a residential plot valued at ₹40,00,000 can be drawn with the outline of the property and connected to the Bhulekh UP Khatauni to confirm ownership.
Database Integration
The system allows both spatial data about the location of a property and the non-spatial data about ownership, tax rate, etc. For example, the records of all properties in Bhulekh UP in Uttar Pradesh, shows the tax authority the correct owner's name, identifying a property worth ₹25,00,000. The database is also capable of answering queries and calculating taxes and generating the bills.
Tax Assessment and Billing
The system determines taxes based on formulas using the flags associated with the system, including property value, location, and use (residential, commercial), among others. A ₹60,00,000 apartment may be taxed at a rate of 1%, and result in a ₹60,000 bill. Citizens may view bills online, download them as PDFs, and pay via links to information about how to pay.
Public Interaction
Citizens can search properties by PID, address, or owner name, and see any outstanding tax liabilities, as well as file their self-assessments. For example, a shop with a cost of ₹35,00,000 can assess their tax liability of ₹35,000, and makes payment online, receiving a digital receipt. A grievance redressal module will help citizens to settle disputes with the corporation, which should improve user experience at each level of the organization.
Role of Bhulekh UP in Property Tax Systems
Ownership Verification
Bhulekh UP provides Khasra and Khatauni records which allow the operator to verify taxes owed against the tax assets owned by the person. If someone has a ₹45,00,000 plot, the operator can check Bhulekh's Khatauni and ensure that the previous owner is the same as the one identified with the tax owed, thus preventing fraudulent claims.
Supporting Tax Mapping
The data contained in Bhulekh UP is meant to run on GIS systems, as the plots locations are accurate to the original. A ₹20,00,000 rural property has provided ULBs with the information they needed to assign a PID after determining that the plot they had was the same as the one listed in Vikas Bhawan remittance registers. To follow up with a tax, the area is divided by property use, and calculated to a monetary tax revenue figure, allowing ULBs to be certain that no property escaped their tax net.
Enhancing Transparency
When citizens have free access to land records, like Bhulekh UP, it allows people to verify tax ownership information. For example, the ownership of a property worth ₹50,000,000 could confirm their Khatauni online, for free, to see if the tax records by ULB are accurate.
Benefits of Property Tax Mapping Systems
Increased Revenue for ULBs
Through mapping property, systems also uncover untaxed properties. In one case in Bangalore, once GEPTIS digitized 20 lakh properties, the entity could add up to ₹1,000,000,000 to its annual revenue by taxing amounts of previously un-mapped and untapped units. Systems explored in UP could find ₹10,000 for every ward in untaxed properties.
Citizen Empowerment
Public portals allow owners to fulfill their tax responsibilities without losing time or money. A homeowner with a property valued at ₹30,000 could pay ₹30,000 in taxes online and not have to pay ₹2,000 in travel or agent costs. Automated notices remind the once assessed - defaulter, which enables the agency to serve its purpose better.
Data-Driven Decision Making
Administrators can use GIS analytical capabilities and visualize spaces of high revenue-generating properties as well as areas that are hot-spots for defaulters. For instance, the Lucknow ward with a tax amount of ₹50,000 in unpaid tax, could be set up for enforcement, which could better optimize collection efforts. Spatial views can assist in urban planning, allocating ₹5,000,000 in infrastructure improvements for areas with higher tax values.
Challenges in Implementation
Technical Limitations
Some urban local bodies (ULBs) are struggling to set up a GIS infrastructure and considering issues with downtime, slow software, old equipment, the logistical cost might be more than the original system at around ₹1,000,000 for implementing a GIS system in a city with approximately ₹500,000,000 land and properties.
Incomplete Data
Rural areas, even in Uttar Pradesh, often have undigitalized records that will complicate tax mapping. For example, there is a ₹15,00,000 rural plot unaccounted for on Bhulekh UP, which will require field verification to check, costing ₹10,000 in surveys, and which will be regrettable when you consider the impact slow digitization will have on the adoption of the entire system.
Resistance to Change
People used to doing things manually (for example, citizens and officials) may have a resistance to your digital systems. Even if you train 100 tax inspectors at ₹5,000 each to ease the transition, that is an additional ₹5,00,000. If you are committed to a public awareness campaign, such training is a small cost, and formally communicating the transition will only make it easier.
How To Utilize Property Tax Mapping Systems Effectively
For Citizens
To access property tax data, visit the ULB's tax portal or Bhulekh UP to find the PID and enter the Khasra number to access property tax dues, pay via the online interface and download the receipt. If the property is valued at ₹40,00,000 and there is a discrepancy in the valuation, please report it and let the municipality know with your grievance module so as to not be overtaxed.
For ULBs
Invest ₹10,00,000 in GIS training for 50 employees so they can accurately the property tax mapping data. You will also only need to remember to update your organization's Bhulekh UP database if you derive satellite imagery from Bhulekh UP each month. If your mapping to a local tax by-law is accurate, this budget should be about ₹20,00,000 a year. You should take interest in engaging regular citizens to disseminate tax assessment self-assessments, which could cost ₹1,00,000 to pilfer around 10 people.
Property Tax Mapping Future in India
Cohesiveness with Smart Cities
The Smart Cities Mission in India will continue into the future and provide city planners with GIS-based tax systems and capabilities. A city project for ₹1,00,00,00,000 could use tax maps and allocate ₹20,00,00,000 for infrastructure; thereby linking tax revenues with urban planning.
Artificial Intelligence and Satellite Imagery
The future of these advanced systems will incorporate other tools, with the utilization of AI and satellite imagery to identify new construction sites so that a ₹25,00,000 unauthorized building is condemned as taxable. The costs to implement a tax mapping system will range from ₹50,00,000 per city, but costs to implement will decrease as the technological advance.
Nation-wide Adoption
After the successful implementation of the Geographic and Emergency Property Tax Information System (GEPTIS) in Bangalore, Uttar Pradesh and other states have similar systems planned. For ₹200,00,00,000 on the Haryana GIS Systems a state could cite 50 lakh properties, and anticipate as much as ₹500,00,00,000 of additional revenues to Local Urban Bodies (ULB) in 2030.
Conclusion
Property Tax Mapping and Information Systems, facilitated by technology like Bhulekh UP, are revolutionizing tax administration in India. By linking GIS technology to ownership records, these systems increase revenue, improve transparency, and engage citizens. For instance, Bhulekh UP serves as a factor for verification of ownership records and has accelerated the system use for tax assessment. In Uttar Pradesh, systems like Bhulekh UP allow for mapping of properties worth ₹50,00,000 or greater, while GIS maps streamline the benchmarking and collections processes for properties with tax liability.
Despite some technical, administrative, and social challenges in Property Tax Mapping Systems including the required technical capacity and investment, the advantages of increased revenue generation potential, efficiency in internal processes, and clarity for citizens create a vital and important system moving forward. As the Government of India embraces digital governance, Property Tax Mapping Systems will ultimately enable sustainable urban development and financial solvency for urban local bodies (ULBs).