The Mangaluru City Corporation (MCC) is facing concerns from citizens and corporators regarding the increase in property taxes for the fiscal year 2023-24. The amendment to the Karnataka Municipal Corporation Act in 2021 changed the calculation of property taxes based on the property's current guidance value, including unoccupied land. The MCC council members and representatives expressed their concerns about the substantial tax burden on individuals with unoccupied land and the potential difficulties faced by middle-class families to fulfil the tax obligations. Chief Whip Premanand Shetty emphasized the need to bring this matter to the government's attention.
The Mangaluru City Corporation (MCC) has decided to correspond with the government after receiving feedback from both citizens and corporators concerning an increase in property taxes for 2023-24.
In 2021, the Karnataka Municipal Corporation Act underwent an amendment by the state government that revised the computation of property taxes. As per this amendment, property taxes are to be determined based on the present guidance value of the property, inclusive of unoccupied lots. The impact of this will likely be significant for property owners, particularly those who possess vast areas of unoccupied land in urban areas.
During the council meeting last week, the discussion focussed on the revised act in the MCC concerning the collection of the SAS property tax. According to the revised regulation, property tax is calculated based on 25 percent of the property's guidance value. Land that is unoccupied and connected to a building but is less than or equal to 1,000 square feet will not be subjected to taxation. A property tax of 0.2 percent–0.5 percent based on the current guidance value will be imposed on empty land measuring more than 1,000 square feet.
Council member Naveen D’Souza and Congress representatives Praveenchandra Alva and A. C. Vinayraj expressed their belief that even individuals with unoccupied land will be required to pay a substantial sum of tax due to the fact that the tax calculation is based upon the guidance value. Hence, significant property taxes will be imposed on family-owned properties that have been unoccupied, and it will impose additional responsibilities on them.
According to Alva, individuals with unoccupied land will also be required to pay a considerable sum in taxes. Numerous households possess approximately half a cent's worth of unoccupied land in the city's interior regions. The unoccupied premises they possess will result in a considerable amount of property tax. According to him, middle-class families will be compelled to sell their assets in order to fulfil the tax obligations for unoccupied land.
According to Vinayaraj, the property tax for empty plots experiences a one and a half-time increase when 25 percent of the guidance value of the property is factored in the calculation.
According to Premanand Shetty, who holds the position of chief whip in the MCC council, the tax on empty pieces of land has undergone a significant rise following the recent review of property tax. He emphasised the importance of bringing the matter to the government's attention.
The tax rates for residential and non-commercial properties have been adjusted within the recommended range of 0.2 to 1.5 percent of the property's capital value using a systematic approach in accordance with guidelines. The most recent update has been integrated into the digital programme and will take effect starting March 21st, 2023.
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