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MCC issues notices to property tax defaulters

The Mysuru City Corporation (MCC) has decided to take stringent action against property tax defaulters. In accordance with updated municipal regulations, the MCC is sending out notices to inform defaulters that their properties may be subject to seizure if outstanding dues are not settled.

MCC has 2.1 lakh properties in all its nine zones and 65 wards.The collection of property tax and water cess constitutes two primary revenue streams for the corporation. In the fiscal year 2023-24, MCC achieved a collection of Rs 183.8 crore, falling short of the target of Rs 214.5 crore, with Rs 30.7 crore still owed by defaulters. For the fiscal year 2024-25, MCC collected Rs 210 crore against a target of Rs 251.4 crore, leaving an outstanding amount of Rs 41.4 crore yet to be recovered.

Similarly, the MCC has been falling short in its efforts to recover water cess collections. In the fiscal year 2023-24, MCC managed to collect Rs 74.6 crore in water cess, significantly below the target of Rs 299.3 crore, resulting in an outstanding amount of Rs 224.6 crore. In the following year, 2024-25, the collection was Rs 82.1 crore against a target of Rs 318.1 crore, leaving a pending balance of Rs 236 crore.

Each year, the municipal authority faces challenges in recovering overdue payments and taxes from non-compliant individuals. According to the revised Karnataka Municipal Corporation Taxation Amendment rules of 2025, the state government has empowered the civic body commissioner, who also serves as the head of the appellate authority, with enhanced authority to take stringent actions against tax defaulters. Notices must be addressed to defaulters within two months of issuance.

According to the updated provisions of the KMC Amendment Act of 2025, the state government has streamlined the process for paying property taxes. Zonal commissioners now bear greater responsibility for tax collection on plots measuring up to 4,000 square feet (100×40). Currently, approximately 92% of the 2.1 lakh properties under the jurisdiction of the MCC can be processed and resolved at the level of zonal commissioners and their offices. Previously, their authority was limited to properties measuring 2,400 square feet or less (40×60). The remaining eight percent of properties, which exceed 4,000 square feet and involve payment disputes, can be addressed at the level of the deputy commissioner of revenue officers and the MCC commissioner.

MCC Deputy Commissioner (Revenue) GS Somashekhar announced that the MCC has completed all necessary preparations and identified defaulters for the collection of outstanding arrears, as well as the payment of property and other taxes in accordance with the revised modifications. These new changes in tax collection will assist the MCC in recovering overdue taxes and collecting arrears by adopting a stringent approach towards defaulters.

MCC commissioner Sheikh Asif Tanveer said that the new law has given more powers to seize and sell their properties if defaulters fail to clear their pending arrears. MCC has given several options for the payment of property taxes, including both online and offline modes.These include a 5% discount on property tax during the first two months of revenue collection, a one-time settlement plan, waiving off interest, and several other measures. Despite these offerings, many defaulters have not settled their tax obligations for several years, he noted.

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