MCC property tax collection crosses ₹190 crore 

Mysuru City Corporation exceeds property tax collection target, credits extended discount period and online payment system for success.

The Mysuru City Corporation (MCC) which has set a target of collecting ₹225 crore by way of property tax during the current financial year, has met almost 85 per cent of its target by the first week of December.

The target also includes arrears from the last fiscal and the MCC has collected nearly ₹190 crore against its target of ₹225 crore. Somashekar, Deputy Commissioner (Revenue), MCC, told The Hindu that generally the MCC tends to meet about 45% to 50% of the target during April when there is a 5% discount for property tax payment. But this year it was extended till September and hence lot of property owners availed its benefit and helped shore up the collections, he added. During April alone the collection reached ₹91.5 crore as against ₹86 crore which was collected during the same month last year.

This year’s revenue collected so far (Rs.190 crore) is in fact higher than the target of ₹180 crore which was set for the previous financial year 2023-24, said Mr. Somashekar.

There are nearly 2.27 lakh registered properties in MCC limits and the property tax is based on the Guidance Value of SR value of properties fixed by the government based on the location. There are other parameters as well that are factored into computing the property tax, which is one of the major sources of revenue for the MCC to provide citizen services. Tax accrued through a renewal of trade licenses and the issue of fresh trade licenses are other means of raising revenue for the MCC.

However, out of 2.27 lakh registered properties in MCC limits, about 27,000 of the are in revenue pockets. Though the MCC accrues expenditure by way of providing all amenities and services including UGD, water supply, road etc., the tax collection is nominal.

Mr. Somashekar said the property tax target in the coming years was bound to increase as 27,000 tax would be collected from the revenue properties as well consequent to government giving its consent to issue ‘B’ Khatha for properties in revenue land which will pave the way for the local body to collect Property Tax in full, from revenue layouts.

The MCC officials aver that introduction of online payment system of property tax has also helped improve collection as people have the convenience of making the payment online at the comfort of their homes.