The Kampala Capital City Authority (KCCA) plans to collect Shs36.2b from property rates in the city, up from Shs 30b projected in the financial year 2017/18, a ministerial policy statement for the upcoming financial year 2018/19 indicates.
The Minister for Kampala Capital City and Metropolitan Affairs, Beti Olive Kamya, says KCCA has submitted proposals to the finance ministry asking the repealing of the exemption of owner occupied properties provision in the Local Government ratings Act 2005 as amended, to pave way for KCCA to collect property tax from landlords staying in their own houses.
The minister in her ministerial statement to parliament, says the valuation of properties in the Central Division was finalized in the financial year 2016/17 and returned a net value of Shs 19b while the additional valuation roll for Central Division returned an extra Shs3.5b which will be administered effective July 1, 2018.
Meanwhile, the ministerial policy statement shows that field data collection in Nakawa Division has been finalized. The valuation of properties in Nakawa Division is projected to generate Shs 15b which will be collected effective July 1, 2018.
KCCA has also finalized plans to undertake concurrent valuation of properties in Rubaga, Kawempe and Makindye Divisions. “These are all aimed at boosting collections from property rates. This is a good step forward that will see the updating of the out dated valuation rolls of the above divisions,” Minister Beti Kamya says.
However, Minister Kamya says the coming into effect of the new rates presents a challenge for collection of arrears from the old rolls. She says KCCA is pursuing an interest amnesty initiative targeting realization of existing arrears before the coming into force of the new rates.
She says KCCA will focus on issuance of all demand notices in the first two months of the due dates of the rates. “This effort will also be complimented by an annual property rates policy we plan to issue which will inform all eligible property owners about their liability for rates, when, where and how to pay, liability and enforcement options,” she says.
She says KCCA intends to prosecute those who fail to remit taxes as provided for by law.
“Prosecution of all non-complying rate payers upon lapse of the due dates, September and December of each year, will be pursued,” she says.