MCC drive to augment property tax collection

₹140 crore collected so far against target of ₹245 crore

The cash-strapped Mysuru City Corporation (MCC) is identifying major property tax defaulters in its ongoing drive to mop up revenue. The revenue through property tax so far has touched ₹140 crore and against the target of ₹245 crore for the financial year 2021-22. Property tax is a major source of revenue to the MCC and in a bid to augment the collection it prepared a zone-wise list of top defaulters. “We targeted 25 top defaulters in each revenue zone of the MCC and increased our revenue substantially,” said N.M. Shashikumar, Deputy Commissioner (Revenue), MCC. A similar list of top 25 defaulters has been made for each of the 65 wards and the MCC officials are racing against time to meet the target. A majority of the defaulters are in the commercial segment and include owners of hotels, choultries and theatres. While about 60% of those listed have coughed up the arrears, there are financial issues plaguing some of the property owners who have sought time. But there are also properties mired in legal quagmire and hence no revenue can be expected from them unless the issue is legally resolved. Last year the MCC had collected ₹119 crore by way of property tax and was reckoned to be low though it was attributed to the impact of the pandemic.

This year, the Government has announced a waiver of 50% on property tax on commercial establishments including hotels, theatres, restaurants, amusement parks, etc. in view of the pandemic. Mr. Shashikumar said the introduction of online system to pay property tax has also helped augment the revenue as more people are willing to pay online. It obviates the need to stand in lengthy queues or visit crowded offices especially in times of the pandemic. Being the first year since the introduction of the online system, the response is good and this is expected to become more popular in the ensuing days, he added. There are nearly 1.7 lakh registered properties in MCC limits and this include nearly 3,000 properties in Vijayanagar 3rd stage which was recently transferred from MUDA to MCC. The drive to augment the tax collection will be intensified in the days ahead and though the MCC hopes to add another ₹30 crore in the next two months, it will fall short of the target by a long way. In an effort to bridge the deficit, review meetings will be held once in 15 days to assess the progress in tax collection.