Patna, April 20: Come June 3, professional agencies outsourced by the state urban development and housing department would assess, collect and make tax recoveries.

The department has already initiated the process of selecting agencies to raise its revenue from Rs 125 crore to around Rs 350 crore by 2014-15.

The agencies would conduct door-to-door assessment of property and vacant land, collect cash/cheques/demand drafts from assesses and set up a help desk (phone and online).

The estimated collection of property tax by all 141 urban local bodies by the financial year 2014-15 is expected to reach a minimum of Rs 350 crore, as a result of the above listed reforms and activities.

“The collection and coverage ratio of property tax across most urban local bodies is considerably low. Reputed professional agencies would be engaged to attain almost cent per cent coverage and at least 90 per cent collection ratio in respect of property tax and vacant land tax,” said a senior department official.

According to sources, the property tax collections during the financial year 2011-12 from arrears and annual demand from about 12,20,000 holdings, was around Rs 125 crore.

However, the estimated annual demand from property tax alone from around 11 lakh urban households is pegged at around Rs 375 crore and it goes up to Rs 600 crore taking into account arrears from unassessed property.

Sources in the department said the agencies would be issued identity cards and also an authorisation letter by the urban local body concerned within seven days of signing of the contract.

The agency employees would have to display the identity card with photographs and copy of the authorisation letter before entering any tax and non-tax payer’s premise.

The employees would be authorised to collect payment through an account payee crossed cheque or demand draft drawn in favour of executive officer or municipal commissioner of the corresponding urban local body.

The agency would not receive any cheque or draft in their names.