Masaka City officials move to collect property tax

Authorities in Masaka  City have announced plans to evaluate all properties in the area to enable them collect property tax this new financial year. 

According to Mr Emmanuel Gakyalo, the Masaka deputy city clerk, the last property valuation exercise was carried out five years ago before Masaka became a city, and there is urgent need to update their data. Masaka is among the 10 new cities that became operational on July 1 last year.

Others are Mbarara, Fort Portal, Jinja, Mbale, Arua, Gulu, Soroti, Hoima and Lira.

“Following the elevation of Masaka to city status and annexing of new areas in July 2020, there are several properties that have sprung up, which  can generate revenue to the city council, but we cannot collect tax from the owners without first valuing their properties,” he said during an interview on Tuesday.

“We are currently looking for Shs250m to facilitate this exercise, and any delay to carry out valuation will interfere with tax collection,” Mr Gakyalo said

During the last valuation exercise, which covered only two divisions, the authorities spent Shs150m.
Mr Tom Luyobya, the chairperson of Masaka City finance committee, said if the exercise is completed in time, the city’s  locally raised revenue is likely to double since property tax is one of the major revenue sources for the city.

 “We have been generating about Shs265 million from property tax and we expect it to rise to more than Shs500 million since the scope of properties is expected to grow considering the new commercial buildings we have in the city,” he said.

A snap survey around the city revealed that there are at least 15 new commercial centres, including plazas, that have opened up in the area in the last five years.

The property owners under their umbrella association, Masaka Landlords and Property Owners Forum (MLPOF), insist that council has to bring them on board before carrying out the planned valuation exercise.

“When they [city council] conduct the exercise without involving us, they will end up establishing rates which are not only unfair but also exploitative, which we cannot accept ,” Mr Noor Njuuki, the publicity secretary of MLPOF, said.

The 2005 Local Government Act mandates urban councils to set property rates not exceeding 12 per cent of the rateable value. It is levied on all commercial buildings.