In the backdrop of complaints from people and council members on the increase in property tax for 2023-24, the Mangaluru City Corporation (MCC) has revised the rates under self-assessment scheme (SAS), said mayor Jayanand Anchan. Speaking to reporters here on Tuesday, Jayanand said the property tax has been revised to reduce the burden on citizens.
“I approved the agenda on the revision of property tax on March 20 and the revised property tax was incorporated in the property tax software of the MCC on March 21. The amount of those property owners who have already pade in advance for 2023-24 will be adjusted when they pay the tax next year.
This information will be shared to property owners through SMS,” he said, adding that 32,407 property owners have already paid property tax to the tune of Rs 17.25 crore for 2023-24. Jayanand said property owners may avail 5% rebate on tax for 2023-24 while making payment before the end of April.
Chief whip in the MCC council Premananda Shetty said as per an amendment made by the state government to Karnataka Municipal Corporation Act to tweak property taxes in 2021, the tax should be calculated based on the prevailing guidance value of the property.
“An agenda on the proposed revision of tax as per the government direction was placed in the council on March 21. However, it was deferred. Later, the Directorate of Municipal Administration (DMA) in December 2022 had sent a warning of recommending the state government to dissolve the corporation for not revising the property tax under SAS based on the amendment.
Further, the directorate also issued a show-cause notice to the then MCC commissioner for not revising the tax. Hence, the previous commissioner had revised the property tax in January 2023. Following this, the property tax in some cases increased by 40 – 50%,” he said.
“As per the instructions of the mayor, commissioner K Channabasappa has submitted an agenda to revise the property tax without burdening the citizens for approval.
The mayor has given his nod for the agenda in anticipation of council approval. The revision has been made by taking into consideration the guidance value of each area and is in the range of 0.2% to 1.5 % capital value of the building.
Concession has been given upto 1,000 sqft area of the land surrounding the houses. The tax for vacant land is calculated in the range of 0.2 to 0.5 % of the land value,” Shetty said. The city corporation has collected Rs 93 crore as property tax in 2022-23, added Shetty.
