<p>Hubballi: Amid discussions on skyrocketing prices of essential commodities and government hiking taxes, the Hubballi-Dharwad Municipal Corporation (HDMC) has also imposed additional strain on property owners in twin cities. It has added solid waste management (SWM) service charges and underground drainage (UGD) user fees to the already hiked property tax.</p><p>This has resulted in about 40% increase in the tax amount many property owners have to pay to the civic body for 2025-26, compared to the previous year. Adding SWM service charge and UGD user fee has been a long pending issue, and this has come into force now, when the HDMC is experiencing serious financial crisis. The civic body’s target of property tax collection has also increased from Rs 141 crore in 2024-25 to Rs 250 core in 2025-26.</p><p>Property tax rate has been increased by 3% this time. The property tax is based on locality, extent of property and purpose of usage. SWM and UGD user charges are also fixed on different slabs. In several cases, these charges have become 40% of the civic tax amount, resulting in sharp hike in the challan amount, in comparison with the payment made last year.</p><p>If nearly Rs 3,200 is the property tax for a property of slightly above 1,000 square feet of built-up area, Rs 1,200 SWM service charge and Rs 600 UGD user fee are added. In addition, citizens as usual have to pay 15% of the property tax as health cess, 6% library cess, 3% beggar cess and 2% urban transport cess, along with SWM cess.</p><p><strong>Exorbitant v/s inevitable</strong></p><p>“Property tax challan amount has become exorbitant. Citizens were kept in dark regarding the introduction of SWM and UGD charges which are unscientific. UGD connection charges are taken earlier itself. For an average property owner, Rs 1,800 is increased now. Hike without consulting or informing the public is totally wrong,” says Jagadish Hombal, a resident of Saraswathipuram on Kusugal Road.</p><p>According to HDMC Commissioner Rudresh Ghali, SWM and UGD user charges had to be collected from 2019 itself as per the government’s direction, and audit objection was also raised for not implementing it so far. “Property tax rate is revised at minimum 3%. SWM and UGD user charges introduced now are fixed ones and they would not be revised every year,” he noted.</p><p>“Around Rs 70 crore per annum is required for SWM system operations and maintenance including wages, while nearly Rs 12 crore is needed to maintain UGD system, sewage treatment plants and garbage yards. General fund itself has to be used for these purposes. Auto-tippers for door-to-door waste collection were introduced some years back, but SWM charges were not collected so far,” says HDMC Chief Accounts Officer Shankaranand Banashankari.</p><p>Compared to other taxes, property tax rate is less. But the civic tax amount looks heavy as it is to be paid at once annually, unlike electricity and water bills which are paid monthly, he added.</p><p>Meanwhile, the HDMC is yet to clear around Rs 160 crore dues including Rs 121 crore direct bills of contractors. Expecting good payment of property tax in April, HDMC officials are hoping that at least Rs 10 crore policy amount can be paid to contractors this month.</p><p><strong>Delayed start: Rebate period extended</strong></p><p>Though the issuing of property tax challans and receiving payments were supposed to begin from April 1, the HDMC faced technical issues in updating the software with increase in property tax and adding SWM and UGD user charges. HDMC’s property tax website and online<br>payment mode opened on Thursday. As the offices were closed on Thursday on account of Mahaveer Jayanti, offline mode would begin on Friday (April 11), officials said. </p><p>Payments in the month of April have 5% rebate (concession) on property tax amount. As the collection began with a delay of 10 days, the HDMC has extended the duration of rebate till May 10. “We will also propose the government to extend the duration for rebate on property tax payment for one more month,” said HDMC Commissioner Rudresh Ghali.</p>
<p>Hubballi: Amid discussions on skyrocketing prices of essential commodities and government hiking taxes, the Hubballi-Dharwad Municipal Corporation (HDMC) has also imposed additional strain on property owners in twin cities. It has added solid waste management (SWM) service charges and underground drainage (UGD) user fees to the already hiked property tax.</p><p>This has resulted in about 40% increase in the tax amount many property owners have to pay to the civic body for 2025-26, compared to the previous year. Adding SWM service charge and UGD user fee has been a long pending issue, and this has come into force now, when the HDMC is experiencing serious financial crisis. The civic body’s target of property tax collection has also increased from Rs 141 crore in 2024-25 to Rs 250 core in 2025-26.</p><p>Property tax rate has been increased by 3% this time. The property tax is based on locality, extent of property and purpose of usage. SWM and UGD user charges are also fixed on different slabs. In several cases, these charges have become 40% of the civic tax amount, resulting in sharp hike in the challan amount, in comparison with the payment made last year.</p><p>If nearly Rs 3,200 is the property tax for a property of slightly above 1,000 square feet of built-up area, Rs 1,200 SWM service charge and Rs 600 UGD user fee are added. In addition, citizens as usual have to pay 15% of the property tax as health cess, 6% library cess, 3% beggar cess and 2% urban transport cess, along with SWM cess.</p><p><strong>Exorbitant v/s inevitable</strong></p><p>“Property tax challan amount has become exorbitant. Citizens were kept in dark regarding the introduction of SWM and UGD charges which are unscientific. UGD connection charges are taken earlier itself. For an average property owner, Rs 1,800 is increased now. Hike without consulting or informing the public is totally wrong,” says Jagadish Hombal, a resident of Saraswathipuram on Kusugal Road.</p><p>According to HDMC Commissioner Rudresh Ghali, SWM and UGD user charges had to be collected from 2019 itself as per the government’s direction, and audit objection was also raised for not implementing it so far. “Property tax rate is revised at minimum 3%. SWM and UGD user charges introduced now are fixed ones and they would not be revised every year,” he noted.</p><p>“Around Rs 70 crore per annum is required for SWM system operations and maintenance including wages, while nearly Rs 12 crore is needed to maintain UGD system, sewage treatment plants and garbage yards. General fund itself has to be used for these purposes. Auto-tippers for door-to-door waste collection were introduced some years back, but SWM charges were not collected so far,” says HDMC Chief Accounts Officer Shankaranand Banashankari.</p><p>Compared to other taxes, property tax rate is less. But the civic tax amount looks heavy as it is to be paid at once annually, unlike electricity and water bills which are paid monthly, he added.</p><p>Meanwhile, the HDMC is yet to clear around Rs 160 crore dues including Rs 121 crore direct bills of contractors. Expecting good payment of property tax in April, HDMC officials are hoping that at least Rs 10 crore policy amount can be paid to contractors this month.</p><p><strong>Delayed start: Rebate period extended</strong></p><p>Though the issuing of property tax challans and receiving payments were supposed to begin from April 1, the HDMC faced technical issues in updating the software with increase in property tax and adding SWM and UGD user charges. HDMC’s property tax website and online<br>payment mode opened on Thursday. As the offices were closed on Thursday on account of Mahaveer Jayanti, offline mode would begin on Friday (April 11), officials said. </p><p>Payments in the month of April have 5% rebate (concession) on property tax amount. As the collection began with a delay of 10 days, the HDMC has extended the duration of rebate till May 10. “We will also propose the government to extend the duration for rebate on property tax payment for one more month,” said HDMC Commissioner Rudresh Ghali.</p>