Patna Property Owners Hit Hard: New Road Classification Could Increase Property Tax by 1.5 Times

Patna: Property owners in Patna are set to face a significant financial impact as the Patna Municipal Corporation (PMC) implements a new road classification system, which will likely lead to an increase in holding (property) tax rates. The move comes as part of the city’s efforts to modernize infrastructure and improve road connectivity.

Major Roads Upgraded, Tax Rates to Rise
Under the new classification, Patna’s 112 roads have been re-categorized based on width and connectivity. The number of “Prime Main Roads” has increased from 24 to 43, while 69 roads have been designated as “Main Roads.” Following approval from the Department of Urban Development and Housing, the new classification is now in effect.

The direct impact of this decision will be on residential and commercial holding taxes, which are calculated based on the road category. Property owners on upgraded roads could see their property tax rise by up to 1.5 times compared to previous rates.

Key Areas Affected
Several busy areas of Patna, including Kankarbagh, Kidwai Puri, and Ashok Rajpath, now fall under higher road categories. Newly designated Prime Main Roads include Ashiana-Digha Road, Hanuman Nagar Road (Kankarbagh), Kidwai Puri Road, Buddha Marg, Congress Maidan Road, Ashok Rajpath, Harding Road, Bakarganj Bajaj Road, Chiraiyatand-English Road, and Nalanda Medical College Road (NMCH).

Newly designated Main Roads include Bakarganj Daldali Road, Bank Road, Jamal Road, Govind Mitra Road, Makhania Kuan Road, and Birla Mandir Road, among others.

Road Classification Criteria
The PMC has classified roads into three categories based on width:

• Prime Main Road: Roads wider than 40 feet
• Main Road: Roads 20–40 feet wide
• Other Roads: Roads less than 20 feet wide

This classification will be reviewed every five years to ensure accuracy. The process has been carried out under the Bihar Municipal Property Tax Assessment, Collection, and Recovery Rules, 2013 (Rule 3).

Revenue Gain, Public Burden
Experts say while this step will boost municipal revenue, it is also likely to increase the financial burden on property owners and renters. The hike in holding tax could, in turn, influence property prices and rental rates across the city.