Property tax in the Mysuru City Corporation (MCC) limits has been increased by 15% for the current financial year and will be valid for three years.
The hike automatically kicks in once in three years under the SAS system of taxation but requires the consent of the Standing Committee on Taxation, Finance and Appeals and the approval of the corporation council.
The MCC Council approved the 15% hike at a meeting on Thursday while the Standing Committee on Taxation Finance and Appeals had approved of the same earlier, according to K.V. Mallesh, Committee chairman. He told The Hindu that the hike will affect all residential and commercial properties besides vacant plots within the MCC limits.
Incidentally, the MCC had pegged the revenue by way of property tax for 2017-18 at ₹175.12 crore and this had factored in the impending hike in the property tax.
While the MCC had announced a 5% discount on payment of property tax during April, it has decided to extend a discount of 2% on the tax computed if the payment is made during May, according to Mr. Mallesh. This is to ensure that the public avails of the benefit and remits the tax to help the corporation meet its target. Last year, the MCC, despite its tax collection drive, fell short of meeting its target of nearly ₹120 crore and collected around ₹100 crore.
The revised 15% hike is applicable to all properties including commercial buildings like theatres, kalyan mantaps and other establishments. Though it was proposed to levy a 30% hike, the councillors opposed it on the grounds that the tax burden would be too steep. The last time the property tax was hiked was in 2014-15.
Online payments
Meanwhile, the online property tax calculator and payment facility is yet to see the light of the day though it is in the pipeline since the last few years. At present, the tax is calculated on the basis of the previous year’s receipt and in most cases there are attendants to work out the figures besides adding the depreciation on property, on payment of a nominal fee. But Mr.Mallesh said though the MCC was pursuing it, the State Government wanted its implementation across all local bodies simultaneously and hence the delay.
