KIADB to be sole Property Tax collector in Hebbal, Hootagalli, Koorgalli and Thandya Special Investment Regions

Mysuru: In a significant relief for industries in Mysuru, the Karnataka Government has announced that property taxes within the Special Investment Regions (SIRs) will now be paid to Karnataka Industrial Areas Development Board (KIADB). Previously, these industries were burdened with dual taxation — paying property taxes to Gram Panchayats, Town Panchayats or City Municipal Councils (CMCs) and also paying maintenance fees to KIADB.

Under the new directive, industries within Mysuru-Thandya SIR, including areas such as Kadakola, Adakanahalli, Kochanahalli, Immavu, multiple phases of Thandya Industrial Area, Women’s Entrepreneur Park, Single Unit Complexes and upcoming Film City, will now pay property tax solely to KIADB. The same applies to industrial units in Hebbal, Hootagalli, Belavadi, Belagola, Koorgalli, BEML Industrial Area and other sectors within the Mysuru-Hebbal SIR with effect from April 1, 2025.

This additional financial load had been a persistent challenge. This long-awaited move addresses a demand pending for over three decades from local industries and  industrial associations.

This decision marks a crucial step towards resolving long-standing administrative ambiguities. It signals the impending establishment of an Industrial Township Authority, which will streamline governance and assign a single agency for tax collection.

Suresh Kumar Jain, Secretary of Mysuru Industries Association (MIA), noted that this resolution is the result of nearly thirty years of consistent advocacy.

In the absence of a unified taxation system, industries in the region faced higher tax rates than their counterparts elsewhere in Karnataka, often imposed by local Panchayats and Municipal bodies — without commensurate investment in  infrastructure.

He cited Hootagalli CMC as a case in point, where industries reportedly contributed Rs. 60 crore in property taxes with minimal infrastructure development in return.

Set of demands by MIA

Following the official announcement of the SIRs in February 2025, the MIA formally approached S. Selvakumar, Principal Secretary, Department of Industries and Commerce, seeking clarity on property tax collection procedures.

The Association stated that from Feb. 10, 2025, Hootagalli CMC should no longer have the authority to collect taxes from designated industrial areas. Moreover, if any taxes have been collected since then, 70 percent should be transferred to the KIADB Mysuru Zone.

The MIA also opposed KIADB’s order to impose a maintenance fee of Rs. 15,000 per acre from April 2025, urging the Board to instead take full responsibility for the upkeep of industrial areas — including maintenance of streetlights, water supply and major roads.

Civic amenities for industrial areas

The MIA further demanded that KIADB ensure the provision of all civic amenities as mandated under the CMC Act, thereby improving infrastructure and public services.

Meanwhile, the Hootagalli CMC should complete all ongoing or initiated road projects within industrial areas.

Additional demands include allocating 70 percent of the property tax collected up to Mar. 31, 2025, exclusively for the maintenance of these industrial zones. This, the MIA says, should be done in consultation between Hootagalli CMC and KIADB.

Until a permanent tax collection mechanism under the SIR framework is fully established, the MIA has called for an ad-hoc arrangement with clear instructions to ensure transparency and continuity.

To address these demands and iron out implementation issues, the MIA has requested a joint meeting of KIADB, Hootagalli Town Municipality, relevant Urban Local bodies and industrial associations.

Stakeholders believe this move will not only simplify administration but also lead to improved infrastructure. By creating a more investment-friendly environment, it is expected that Mysuru will diversify beyond its tourism-centric economy, spurring industrial growth and broader economic development.