Landlords and local leaders in Katooke Town council have been urged to embrace Property tax.

This was in an engagement and training held at Katooke Town Council Offices, involving Local council leaders, area councilors, landlords, Town Council staff and Kyenjojo District Local Government staff.

The training was an inevitable one, to highlight on the benefits of collecting property tax, and the benefits that come back to the people residing in the area.

A cross section of leaders and landlords at the property tax engagement at Katooke TC

Property tax is a mandatory payment levied on immovable properties like commercial buildings, as well as tangible personal property, by local, state, and national governments. This tax funds essential public services, including schools, roads, police, and emergency medical services.

Property tax in Uganda is governed by the Local Government Act of 2005 and amended by Local Government Regulations of 2006. Property owners are responsible for paying property rates, including individuals owning buildings used for commercial activities, and tax is calculated based on the property's value and services, varying by location and size.

While coordinating the meeting, Mr. Jordan Alicwamu, the Senior Treasurer in Charge District Revenue, educated on how property tax is arrived at, with the local government assessing the property's value, considering factors like location, size, and condition. A tax rate is then applied to the assessed property value, usually expressed as a percentage amount of assessed value.

 Mr. Jordan Alicwamu, illustrates to the meeting the calculations made to arrive at the property tax obligation

Gross value is achieved by the total rent income earned in a year from the entire commercial building and then the Land lords receive an allowable deduction between 22% to 30%.

The balance after allowing them 22% to 30% is what we call Rate able value and it's in that where the district approved a rate of 6% to charge on the rate able value.

He also explained how an owner occupied house doesn't pay Property tax because it doesn't earn the owner any income. But if the owner is operating business in his/her own house then that house will pay Property Tax because he is using it to earn an income.

He also informed the land lords how the time for appeals expired in Feb 2025 and all processes were followed before the Tax could start being collected.

The process involved, displaying the draft valuation roll for 30days, receiving of complaints, forming a valuation court chaired by the Chief Magistrate, submitting the draft to the valuer for Amendments, taking the amended to the minister of Local Government for approval and finally uploading the list onto IRAS. Taxpayers have been given up to end of April to have paid all their assessed taxes, and May will be used for court process to ensure all the assessed revenues are collected. He urged the attendees not to wait for that time.

The Chief Finance Officer, Mr. James Fred Mugabi, urged the leaders to comply and take the lead in enforcing these collections, as they come back fully to the town councils and contributes to their development. He also warned them that if the assessed amounts are not paid, and remain in arrears, they remain and keep attracting interest until paid, with a heavy financial burden falling on the payer.

 L-R District Staff ALicwamu Jordan, James Fred Mugabi, and Samuel Kaganzi at the engagement.

The Town Clerk, Ms. Maureen Gamukama, thanked the District staff for the initiative taken, to help educate the landlords and local leaders. He encouraged the landlords to get a copy of the tenancy agreements, and make sure this info trickles down to their tenants. She also urged them to have records of their tenants, and share the same with the Town Council authorities, that may come to help in cases of noncompliance.

 The Town Clerk, Ms Maureen Gamukama (4th R) and the Town Council staff team follow proceedings keenly.

The Speaker, Katooke Town Council, Ms. Kasemire Rose, echoed that taxes paid help the Town Council execute activities like garbage collection, and urged the leaders and landlords to put the town clerk to task if taxes are paid and services are not extended to them. She also urged the trained leaders to go and also train others that didn’t attend, and their tenants, and other community members to comply with existing tax laws. She further urged the landlords to ensure their tenants are aware of the tenancy agreement, and their expectations to help them comply with property tax requirements.

She ended by thanking the Town Clerk and her team, for mobilizing the leaders and landlords, to ensure they are knowledgeable of the existing tax laws.

Ms. Rose Kasemire, the Speaker Katooke TC gives her remarks