MYSORE: Discrepancies in the revision property tax laws carried out by different government agencies have confounded the prevailing confusion over payment of property tax here.

Identifying a series of incongruities in the rules formulated by the Department of Law, Directorate of Municipal Administration, Department of Stamps and Registration and the Mysore City Corporation, the Mysore Grahakara Parishat (MGP) apprehended that most residents of Mysore will not be able to pay property tax for 2005-06.

In a press release, MGP convenors B.V. Shenoy and C.V. Nagaraj said the amendment to the Karnataka Municipal Corporations Act, 1976 (KMC Act), concerning the Self-Assessment Scheme (SAS), passed by the State Government earlier this year, does not provide for the 50 per cent rebate given for property owners for self-occupancy.

"It appears that the Department of Parliamentary Affairs and Law that drafted the latest amendment had not even read the Act they were amending, and hence, unaware of the provision pre-existing under Section 109 A allowing rebate for self-occupied buildings. Their ignorance of law might cost property owners the 50 per cent of rebate they were entitled to," the MGP said.

The MGP contended that the Directorate of Municipal Administration, which issued a circular to local bodies directing them to base property tax only on 50 per cent of the property guideline values, had contradicted the amended KMC Act, which stated that the taxable capital value of the properties are the full property guideline values published under Section 45 B of Karnataka Stamp Act, 1957.

The circular instructs the local bodies to ensure that the property tax fixed for 2005-06 is not less than the tax for 2004-05. But, the Mysore City Corporation, taking a stand that it cannot implement the circular, had written back to the directorate, contending that it will continue to collect property tax at 2004-05 rates. Though the latest amendments exempt the land around buildings from property tax, which will witness a reduction in the tax, the corporation, it is understood, will deny these benefits to the people, given by the law of the land.

Referring to the recently completed revision of property guideline values in Mysore, the MGP pointed out that guideline values had increased steeply in most parts of the city. "We understand that the Registrar's office, probably fearing a backlash from property tax payers, has added a provision that the revised guideline values apply only to determine the stamp duty on property transactions and not for fixing property tax," the MGP said. "This is again in violation of the KMC Act, which clearly states that property tax should be based on the guideline values published by the Registrar, and the Registrar's office cannot say that the guideline values published by it cannot be applied for determining property tax," Mr. Shenoy and Mr. Nagaraj said.

The MGP said the confusion resulting from "wholesale" violation of the law by several government bodies will force many property owners here to desist from paying property tax for 2005-06. Any move to compel property owners to pay tax will certainly be challenged by lawsuits.

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