Masaka leaders audit buildings for new tax rate
A section of Mawagola Street in Masaka City. The leaders have revived a plan to evaluate all buildings in the city before setting new property rates. PHOTO | MALIK FAHAD JJINGO
What you need to know:
- According to the 2014 Property Valuation Report, the then Masaka Municipality had more than 4,452 buildings that qualify to pay property tax, but the number is expected to have doubled over the years since there are new areas which were recently annexed to the city.
Authorities in Masaka have rekindled a plan to evaluate all buildings in the city before setting new property rates.
The last property valuation exercise was carried out seven years ago before Masaka became a city and plans to conduct it last year failed after city authorities failed to raise Shs250m.
Ms Harriet Nakafeero, the Masaka City finance officer, said they have already secured funds for the valuation exercise, which will be conducted by a hired private firm, Knight Frank Uganda Ltd.
“There are many buildings that have sprung up over the years which can generate revenue to council and we cannot collect tax from the owners without valuing their properties first,” she said on Monday.
Masaka is among the 10 new cities that became operational on July 1, 2020. Others are Mbarara, Fort Portal, Jinja, Mbale, Arua, Gulu, Soroti, Hoima, and Lira.
According to the 2014 Property Valuation Report, the then Masaka Municipality had more than 4,452 buildings that qualify to pay property tax, but the number is expected to have doubled over the years since there are new areas which were recently annexed to the city.
A survey by Daily Monitor around the city revealed that there are at least 15 new commercial centres including plazas, hotels, sport and recreation parks that have been erected in the last five years.
“Property tax is one of our major sources of revenue and we have been generating about Shs300 million, but our target now is more than Shs1 billion since there are new commercial buildings in the city,” she said.
Ms Nakafeero, however, said some buildings such as those that house religious leaders, cultural leaders and orphanages are exempted from paying property tax. “All buildings including residential and commercial will all be valued because what is residential today can be turned into commercial tomorrow,” Ms Nakafeero said.
Nyendo/Mukungwe Municipality Town Clerk Sarah Nandawula said valuers will look out for the names of building owners, business conducted on the building, and serial number of the buildings. “We expect the town agents and village chairpersons to help in identifying the owners of the buildings,” she said.
Mr Lubega Lukande, one of the landlords in Masaka City, welcomed the valuation process. “The valuation exercise was poorly conducted because some buildings were undervalued and others overvalued,’’ he said.
