The Independent Uganda: You get the Truth we Pay the Price
Kampala, Uganda | THE INDEPENDENT | Kampala Capital City Authority-KCCA has released the valuation lists for Makindye, Kawempe, Lubaga and Nakawa divisions regarding payment of property tax.
In a statement issued by KCCA, the list contains 20 parishes from Makindye Division, 13 from Lubaga, 19 from Kawempe and 21 from Nakawa division.
“In accordance with the provisions of the Local Governments (Rating) Act, 2005, and the Kampala Capital City Act, 2010 Section 78 (2) b and c, Notice is hereby given to the general public that; the Makindye division rating area valuation list as listed below shall come into force on 1st July 2019” reads part of the notice. The same notice contains Nakawa, Lubaga and Kawempe Division.
The list comes days after KCCA pleaded that the valuation exercise be expedited to enable tax collection this financial year.
Last week, KCCA expressed concerns over the delayed valuation process, arguing that it would interfere with tax collection if not concluded swiftly.
The valuation process started in 2016 with the Central division of Kampala. It was later extended to the other divisions of Nakawa, Lubaga, Makindye and Kawempe. The previous valuation exercise was conducted in 2005.
The local government (Rating) Act 2005 provides for 30 days after completion of valuation process and display of draft list, for property owners to raise objections about the process. The objections are handled by a valuation court appointed by the Lord Mayor Erias Lukwago.
KCCA however extended the 30 days’ period due to the magnitude of objections that were raised. The objections included petitions from especially Kawempe division that sought cancellation of the entire process with property owner and division leaders citing irregularities like over taxation, levying tax on residential areas and lack of proper sensitization among others.
The Head of Valuation team Aloysius Bagonza, says that failure to complete and certify the valuation process, KCCA would have to base on old rates as set after the first valuation process conducted in 2005 which he said could put KCCA at a loss.
“If rent was one million in 2005 and 6 per cent of the rateable value will be about 44,000 Shillings. In 2019, the rent at the same property could be at three million bringing 6 per cent of rateable value to around 130,000 Shillings” Gonzaga said in a phone interview with the URN on Saturday 29th June.
Property tax is charged by local governments on all commercial structures. According to the Local government (Rating) Act, 2005, it is 6% of the rateable value. The rateable value is 74% of the income earned from the property.
The 6% is an annual payment to be paid in two equal instalments. KCCA set two dates as September 30th and December 31st for the first and second payments.
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