The Vadodara Municipal Corporation (VMC) has initiated a process to classify certain paying guest (PG) accommodations as commercial properties for taxation purposes. The move will apply to residential properties where three to four or more individuals are staying in a hostel-like arrangement.
According to sources in the civic body, if a house is being used for commercial PG operations, it will be liable to pay commercial property tax instead of residential tax. Ward-level officials have been instructed to conduct surveys to identify such properties. Field inspections are expected to begin within the next few days.
VMC officials stated that the decision is based on the usage of the property. If it is being used for business purposes, the applicable tax category will be commercial.
Further clarification regarding implementation and assessment details is awaited. Property owners have been advised to verify their property usage status with their respective ward offices.
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