Deccan Herald 03.02.2010

Chairing a review meet at the Corporation Council Hall here on Tuesday, Kodgi said that Corporation should give more emphasis on resource mobilisation.

“Implement SAS and collect tax from all property owners effectively. Corporation need not wait for government’s clarification to implement the Section 112 (C) of KMC Act,” he said and directed the corporation authorities to increase the revenue through all possible means including advertisement and parking fees.

Explaining revenue collection, MCC Commissioner Dr K N Vijaya Prakash said that while MCC had a target of Rs 20.35 crore in 2007-08, the total collection was Rs 14.19, while the balance was Rs 6.56 crore. In 2008-09, the target was Rs 25.11 crore. However, the Corporation had collected Rs 13.06 crore and the balance was Rs 12.05 crore.

Corporation has already collected Rs 11.79 crore till December, 2009, against the target of Rs 33.59 for 2009-10. The balance for the year is Rs 21.79 crore, he said and pointed out that the tax collection process has been affected due to the delay in the implementation of SAS.

Handbook on revised SAS will be released before February 15, he said adding that property owners can pay the tax through 33 branches of various national banks too.

Vijaya Prakash said that the special task force has identified 33,635 property to be covered under SAS in 57 wards in the Corporation. The expected revenue collection may increase by about Rs 8.5 crore after the survey was over in 60 wards. Currently, there are 1.41 lakh residential buildings and 42,000 commercial buildings in MCC limits, he added.

Kodgi promised in the meet that he would recommend the government to increase the honourarium for elected members in the local body. Third Finance Commission members Thimmegowda, Mahendra S Kanti, MCC Mayor M Shanker Bhat, MLC Kota Srinivas Poojary and Deputy Commissioner V Ponnuraj were present.

The Hindu 03.02.2010

Revised property tax approved by Government

Staff Correspondent

MANGALORE: The State Government has approved the rates of property tax as revised by the Mangalore City Corporation under the self-assessment scheme (SAS), according to K.N. Vijayaprakash, Commissioner of the corporation.

The revised rates are applicable with retrospective effect from 2008-09, he told presspersons during an informal chat on Tuesday.

According to the revised rates, the tax for residential buildings will be 0.5 per cent of capital value instead of 0.6 per cent, and the levy on commercial buildings will be 1.5 per cent of capital value instead of 2 per cent.

The rate for the third category of property has been reduced by 50 per cent. The rate of tax for non-residential/non-commercial buildings has been fixed at 1 per cent of capital value. Earlier, this category had been classified as commercial/non-residential buildings and levied a tax of 2 per cent.

Vacant sites

The tax for vacant sites measuring up to 1,000 sq. m is 0.1 per cent; between 1,000 sq. m and 4,000 sq. m, 0.025 per cent; and those above 4,000 sq. m, 0.01 per cent.

Mr. Vijayaprakash said that the corporation would prepare a booklet containing details of the revised rates and the scheme in 10 days. Pamphlets would be distributed to people to create awareness about payment of taxes.

As the civic body was awaiting government approval for the revised tax rates, there was confusion among the people about paying it, he said. The Commissioner said that he would convene a meeting of bank authorities here in a few days and request them to accept property taxes in all the 43 branches here.

Plans were afoot to open counters at select places to receive property taxes. The corporation would make an announcement to this effect in a few days, he said.

Earlier, participating in a meeting convened by A.G. Kodgi, Chairman of the task force on implementing recommendations of the Third Finance Commission, Mr. Vijayaprakash said it had come to the corporation’s notice that 33,635 property owners had not paid taxes this year. This included 21,090 residential properties and 12,545 non-residential properties. In all, the civic body had to collect taxes from 1,83,663 properties from this financial year. It included 1,41,167 residential and 42,496 non-residential properties, he said.