UGANDA, Masaka | Real Muloodi News | Masaka City Council officials have listed over 20,000 commercial buildings eligible for property rates tax.
The commercial buildings include, among others, hotels, office buildings, and recreation areas.
According to Mr Geoffrey Bamanyisa, the Masaka City clerk, the latest valuation roll shows that Nyendo-Mukungwe Municipality is in first place with 16,686 structures, followed by Kimaanya-Kabonera Municipality with more than 3,375 buildings, totalling 20,061 properties.
The valuation roll has given the council hope that they may be able to get additional money, he continued, even though they had expected to raise USh1 billion from property rates this fiscal year.
On Tuesday, November 22, 2022, a quick survey in the city centre revealed that at least 20 new commercial centres, including plazas, hotels, and sports and leisure parks, had opened there in the previous five years.
“If it all goes well, we project to collect more than Shs2.5 billion in property tax, and we hope the money will improve service delivery,” Mr Bamanyisa said.
Before beginning to issue the new property tax rates, Masaka City engaged the services of Knight Frank Uganda Ltd in April to undertake an assessment and valuation of properties in the city.
Over 4,452 structures in the former Masaka Municipality were eligible to pay property taxes, according to the 2014 property value report.
If the council makes no changes, the five per cent tax rate on properties levied during the previous fiscal year may be maintained, according to Masaka City’s deputy chief financial officer, Mr Aniwal Kizito.
The Masaka Landlords and Property Owners Forum’s media secretary, Mr Noor Njuki, said they are still awaiting the council’s decision on whether to continue with the 5% tax rate.
Masaka last assessed its properties in 2014 before it was incorporated as a city.
Property owners objected to the proposal to increase the property rates, claiming that many of their properties were not assessed, and the previous Masaka Municipal Council was obliged to reduce the property taxes from 8% to 5%.
Urban councils are required by the 2005 Local Government Act to impose property rates that do not exceed 12% of the rateable value.
It is imposed on all commercial structures. The rateable value of a property is 74% of the yearly revenue collected from tenants by the building owner. The remaining 26% is set aside for the owner to cover utility costs and renovations.
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