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Frequently Asked Questions
Many parties (tenant and landlords) have expressed concern over the amount payable as ground rents as being very small and likely to breed disharmony between the landlord and tenant. A good number would wish to pay over and above the ground rent determined by the Minister.
It should be noted that ground rent/ busulu is merely nominal and not intended to reflect the commercial value of a given Kibanja. The law however hedges those who fail to reach a mutual agreement.
Ground rent payable to a landlord in Wakiso District fall is categorized depending on the location of the land.
Municipal Council: Ushs. 30,000/- per annum
Town Council: Ushs. 20,000/- per annum
Rural Area: Ushs. 5,000/- per annum
The following persons are recognized as tenants or Kibanja holders before the law.
- A person who settles or settled on land with the consent of the land lord.
- A person who paid busulu and envujjo under the repealed busulu and envujjo law.
- A person who by the enactment of the 1995 constitution of the Republic of Uganda had settled on land for a minimum of 12 years and above without any objection from the land lord.
- A successor in tittle of all persons listed above
Having the right qualification for that specific job and going through the rigorous recruitment process of the district service commission.
Certificates of acknowledgements recognizing their contribution and are they are saved the inconvenience encountered by non-compliant tax payers in addition to fast response to their issues in case they have any.
- Gross value: Means the rent at which the property might reasonably be expected to let, from year to year, if the tenant undertook to pay conservancy fees, water rates and all other usual tenants’ rates and taxes and the landlord undertook to bear the cost of repairs and other expenses necessary to maintain the premises in a state to command that rent.
- Ratable value: Means the net annual rental value of a property is obtained after deducting a rate of 22% on the gross value.
- Amount Payable: Is the amount obtained after applying a tax as approved by council. For Wakiso it is 8% of the ratable value of the property.
AN ILLUSTRATION ON ASSESSMENT OF PROPERTY TAX
If a building earns Shs100,000 per month
100,000 X 12 = 1, 200, 000
Reduce by 22% meant for maintenance of the commercial building
1,200,000 X 22% = 264,000
936,000/= Ratable value
Tax at e.g. 8%
936,000 X 8% = 74,800/=
Compare the tax of shs74, 800 that is deducted from Shs1, 200,000 generated by the owner of the building in a year.
Property tax is a tax levied on commercial buildings it is based on the rentable value of that building which value is ascertained by a qualified and approved valuer.
There is tax assessment appeals tribunal at the various sub counties town councils that are headed by the sub county chiefs/town clerks that can address these grievances when not satisfied you can appeal to the chief administrative officer at the district and then to the minister of local government.
Allocation is guided by National and local priorities both communicated through budget call circulars.
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