The Hindu          01.04.2011

Corporation hikes property tax

Mayor Praveen (centre), Deputy Mayor Geetha N. Naik and Corporation Commissioner K.N. Vijayaprakash addressing a press conference in Mangalore on Thursday. — PHOTO: R. ESWARRAJ

Property tax payers in the jurisdiction of Mangalore City Corporation will have to pay more tax from 2011-12.

The civic body has increased the property tax by 15 per cent on the total value of the property. In addition, it has imposed solid waste management cess afresh.

Mayor Praveen and Corporation Commissioner K.N. Vijayaprakash told presspersons here on Thursday that according to Section 109 (A) of The Karnataka Municipal Corporations Act, 1976 the rates of property tax under the self-assessment scheme (SAS) should be revised upwards once every three years. The tax rates could be increased from 15 per cent to 30 per cent of the property value.

The Mangalore City Corporation had adopted the SAS for assessing property taxes from 2008-09.

They said that solid waste management cess would be imposed under Section 103 (B) (2) of the Act. The civic body had not imposed it while implementing the scheme three years ago.

Mr. Vijayaprakash said the prevailing tax rates fixed for three categories would remain the same. It is 0.5 per cent (of ratable value) for residential; 1 per cent for non-residential and non-commercial and 1.5 per cent for commercial buildings. The 15 per cent increase was not calculated by adding it to the three categories of tax rates. It was added to the total value of property.

According to R. Meghana, Revenue Officer at the corporation, the 15 per cent increase should be added to the property value mentioned by the tax payer while paying tax for 2008-09. The taxpayers should not take the total value of property tax paid in 2009-10 and 2010-11 for calculating (adding) 15 per cent increase while paying the tax for 2011-12, she said.

For example, if the tax paid in 2008-09 stood at Rs. 124 inclusive of 24 per cent cess (Rs. 100 as property tax plus a cess of Rs. 24), for 2011-12 he or she would have to pay Rs. 142.60 as property tax. In addition to this, there would be solid waste management cess specified for different categories while paying the total tax.

It works out like this: When Rs. 15 is added to Rs. 100 as 15 per cent increase t will be Rs. 115.

When 24 per cent cess (Rs. 27.60) is added the property tax would be Rs. 142.60. This amount was not the final tax amount. One has to add the SWM cess specified to Rs. 142.60.

Mr. Vijayaprakash said that the solid waste management cess would be imposed in four categories.

The monthly cess to be paid is as follows: Rs. 10 for buildings having less than 1,000 sq. ft. plinth area; Rs. 30 for buildings having not less than 1,000 sq. ft. plinth area and not more than 3,000 sq. ft. plinth area; and Rs. 50 for buildings having above 3,000 sq. ft. plinth area.

Commercial buildings

Rs. 50 for plinth area less than 1,000 sq. ft.; Rs. 100 for plinth area less than 1,000 sq. ft. and not more than 5,000 sq. ft.; Rs. 200 for plinth area exceeding 5,000 sq. ft.

Industrial buildings

It will be Rs. 100, Rs. 200 and Rs. 300 in the same slabs for industrial buildings and Rs. 300, Rs. 500 and Rs. 600 in the same slabs for hotels, nursing homes and kalyanamantapas.