In a bid to increase property tax collection in the twin cities, the Hubballi Dharwad Municipal Corporation has decided to initiate steps to bring hidden (that have not come under the tax net) property under the property tax net.
After elaborate discussion on the issue in the monthly council meeting of the corporation in Dharwad on Wednesday, Mayor Iresh Anchatageri issued a ruling asking officials to launch a drive to bring all such property, both domestic and commercial, under the tax net and also impose penalty on owners of such property for not paying property tax.
Mr. Anchatageri said that respective heads of the 12 zones in the corporation will be appointed as nodal officers for a survey of such hidden property and directed the officials to complete the exercise before January 15 next.
The Mayor also asked the officials to send a proposal to the State government seeking permission to allow the civic body to hold auction to sell municipal property given on lease basis to commercial establishments and businessmen. Until there is a response from the government on the issue, rent and stallage for such property should be revised as per market value, he said.
Earlier, raising the issue through a calling attention motion, the former Mayor and BJP councillor Viranna Savadi highlighted the inability of the officials in increasing revenue collection. He pointed out that although the same issue had been raised in an earlier meeting and resolutions passed, the officials have not taken them seriously as there has been no progress made in this matter.
Mr. Savadi said that although there are over five lakh property in the municipal corporation limit and another two lakh hidden property, a majority of owners of such property have not applied for completion certificate and consequently, no tax is being imposed on them. He then laid emphasis on the need for introducing GIS (Geographic Information System) mapping to widen the property tax net.
Mr. Savadi also stressed the need for selling HDMC property given on lease to mobilise revenue for the corporation.
Floor leader Thippanna Majjagi concurred with him and urged the Mayor to send a proposal in this regard to the State government.
He said that lease holders of HDMC stalls have sub-leased them for higher rent causing loss to the corporation.
Municipal Commissioner Gopalkrishna B. said that to evade tax, several building owners are still paying tax for vacant sites despite having constructed buildings on them. In all, 3,800 such property were identified and a penalty of ₹18.14 crore have been collected from them, he said.
The discussion concluded with the Mayor setting a deadline for the survey and also for holding a drive for issuing completion certificate to property owners. The council meeting also gave approval to imposing underground drainage cess starting Thursday, incorporating it with property tax.
