Mysuru: Urban Development Minister Byrathi Suresh has ordered the Mysuru City Corporation (MCC) to adopt the Bruhat Bengaluru Mahanagara Palike (BBMP) model for tax collection, expressing dissatisfaction over missed targets in Property Tax and water bill collection.

He questioned the lack of stringent tax enforcement despite demands for hundreds of crores of rupees in grants. MCC Commissioner Shaikh Tanveer Asif reported that 82 percent of Property Tax and 65 percent of water charges have been collected so far. Efforts are underway to recover the remaining 18 percent of Property Tax, targeting the top 100 tax-payers in each Revenue Inspector’s jurisdiction.

The Minister pointed out that in Bengaluru, even a month’s delay would result in double the tax being collected and questioned why Mysuru could not implement a similar system. He asked if legislators had ever instructed officials to be lenient with tax collection.

So far, Rs. 210 crore in Property Tax has been collected, with Rs. 30 crore to Rs.40 crore still pending. The Minister pulled up officials for not collecting taxes based on the new SR values.

Implementing new taxation

The Minister instructed MCC to set Property Taxes according to the new SR values and impose penalties for late payments. If payments remain pending, buildings should be locked or electricity and water connections cut off.

Noting that 30 percent of water users are defaulters, he emphasised the need for stringent measures similar to those in Bengaluru, where even a day’s delay is penalised.

The MCC Commissioner noted that inspecting buildings and fixing appropriate taxes could boost tax collection by at least 20 percent. In response, the Minister directed MCC Deputy Commissioners to prioritise this initiative.

Over 55 lakh property owners in urban areas across the State are not paying taxes. To address this, authorities are planning to bring them under the tax net using ‘B-Khata’ records.

However, if legal procedures are strictly followed, these defaulters could continue to evade taxes as long as their properties remain unregistered. Despite having access to water, sewer, and road facilities, their properties are not registered under their names, allowing them to bypass the tax system, he opined.

Boosting revenue

For inherited properties without sale deeds, property accounts can be created using partition deeds or gift deeds. The Minister asked MCC to formulate new regulations to enhance financial resources.

The MCC Commissioner said that a new rule is being introduced to identify properties using electricity and water bills to create property accounts. In the first phase, property accounts will be created based on ownership documents.  Subsequently, properties with unpaid taxes, identified through electricity and water bills, will be listed. Officials will conduct on-site inspections and question property owners about unpaid taxes. Based on the documents provided by the owners, Khatas will be created as per the rules,  the Minister added.