The Hubballi-Dharwad Municipal Corporation (HDMC) has initiated efforts to collect property tax from railway properties following a 2009 Supreme Court ruling affirming their taxability. Spread across four zones, these properties include workshops, hospitals, quarters, and the main railway station. In collaboration with South Western Railways, HDMC plans to assign Property Identification Numbers (PIDs) to assess tax rates based on property usage. With projected revenue of INR 25 crore, this initiative aims to bolster HDMC's finances for infrastructure and public services. The process, set for completion by March, highlights inter-agency coordination to enhance civic administration.
The Hubballi-Dharwad Municipal Corporation (HDMC) is taking significant steps to collect property tax from railway properties in response to a Supreme Court ruling from 2009. This ruling stated that properties owned by the railways are subject to property tax, similar to other government-owned properties. After previous efforts to gather property details from railway officials were unsuccessful, the HDMC is now optimistic about its renewed initiative, which is receiving cooperation from railway authorities.
The railway properties in question are spread across four zones within the HDMC jurisdiction. Senior officials from the railway department have instructed their zonal representatives to provide the necessary property information to the municipal corporation. This collaboration is inspired by the successful tax collection efforts of the Kalaburgi Municipal Corporation, which has already begun taxing railway properties. To streamline the process, HDMC plans to assign Property Identification Numbers (PIDs) to railway properties, which will help in determining the appropriate tax rates.
Hubballi is an important hub for the South Western Railways, hosting various facilities such as workshops, hospitals, employee quarters, and the main railway station. To assess these properties, the HDMC will measure built-up areas, categorize property usage, and apply tax rates according to its guidelines. The corporation aims to complete the mapping of properties and the generation of PIDs by March. This process will involve digital mapping, verification of land records, and establishing tax slabs based on the type and usage of each property.
To ensure effective communication and coordination, HDMC has designated a team of officials from each zone to work closely with railway representatives. These officials will assist in gathering documentation and accessing railway premises for the necessary assessments. The successful implementation of this tax collection initiative is expected to significantly enhance HDMC's revenue, which can be reinvested into local infrastructure and public services.
According to Vishwanath PB, the Chief Accounts Official (CAO) of HDMC, the corporation has already received positive feedback from railway officials. Teams from Zones 4, 6, 8, and 10 have been established to collect property details and generate PIDs. The tax rates will vary depending on the type of property, including commercial, residential, and institutional uses. HDMC is tentatively projecting to collect around INR 25 crore in property tax once the process is fully operational.
The final decision on when to start collecting taxes will depend on the successful gathering of property details and the establishment of PIDs. HDMC plans to review tax structures from other municipal corporations to ensure a fair and effective property tax system. This initiative not only aims to boost local revenue but also to enhance the quality of civic amenities in areas surrounding railway properties.
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