Hike in property tax from today

Hike in property tax from today

The Mangaloreans will have to shell an extra amount as property tax from today, as the Mangalore City Corporation has declared the hike in rates of property tax under the self-assessment scheme (SAS) with effect from April 1, 2011.

Speaking to media persons here on Thursday, Mayor Praveen informed that according to Section 109 (A) of The Karnataka Municipal Corporations Act, the civic body has the privilege to increase the property tax between 15 to 30 per cent every three years.

Accordingly, as the MCC had implemented the SAS for collecting the tax from April 1, 2008, the Corporation has now decided to hike the tax rate for 15 per cent from this month. “The tax hike is inevitable as we have to maintain the city with the limited funds,” he said.

MCC Commissioner Dr K N Vija Prakash informed that those who pay the tax in the month of April will be given 5 per cent discount, while those who pay the tax in May and June will be exempted from penalty.

All those who pay the tax from the month of July will be liable to pay 2 per cent penalty, he said.

Meanwhile, he informed that the total tax collection of the previous fiscal year will be announced within two days. “We had a target of tax collection of Rs 28 crore for the year 2010-11 and we have collected the tax for about 94 per cent as on March 15,” he said.

Additional tax for SWM

The MCC will impose additional tax to the public in the form of Solid Waste tax - according to Section 103 B(2) - from April 1. Informing the same. Vijay Prakash said the tax will be imposed on the public in four different categories.

The tax details are as follows. The residence with less than 1,000 sq ft will have to pay Rs 10, those with 1,000 sq ft - 3,000 sq ft will have to pay Rs 30 and the houses with above 3,000 sq ft should pay SW tax of Rs 50.

Commercial complexes

1,000 sq ft - Rs 50
1,000 sq ft- 5,000 sq ft - Rs 100
Above 5,000 sq ft - Rs 200

Industrial houses

1,000 sq ft and below- Rs 100
1,000 sq ft- 5,000 sq ft - Rs 200
Above 5,000 sq ft - Rs 300

Hotels, marriage halls, hospitals and nursing homes

10,000 sq ft and below - Rs 300
10,000 sq ft - 50,000 sq ft - Rs 500
50,000 sq ft and above - Rs 600

SWM expenditure

MCC Commissioner informed that as per the calculation, the MCC would require Rs 12 crore per year for the purpose of solid waste management, out of which Rs 3.5 crore could be collected from the solid waste tax. The rest of the finance would be collected in the form of property tax, advertisement revenue and recycling initiatives, he said.