Property Tax goes up by 15 to 20 percent 

Tax calculation based on 30% – 50% guidance value increase by State Govt. in October 2023, says MCC Commissioner

Mysore/Mysuru: Mysuru is set to see a sharp rise in Property Tax after the Mysuru City Corporation (MCC) has implemented a guidance value- based tax collection effective from Apr. 1 (today). The move will likely push up already soaring real estate rates and residential and apartment rentals.

Guidance value represents the minimum value assigned to a specific area by the State Government. It serves as a benchmark for property transactions, influencing stamp duty, registration fees and Property Tax calculations.

In October 2023, the State Government increased the guidance value by 30 percent to 50 percent effective Oct. 1, 2023.

MCC Commissioner Dr. N.N. Madhu told SOM this morning that the Property Tax will be calculated based on the guidance value that has been revised by the State Government. “The system we are following here is based on the guidance value and the rates will go up by 15 percent to 20 percent depending on the classification and business activities of that particular area,” she said.

The hike will cover all residential and commercial buildings, vacant sites, industries, trusts, cinema and marriage halls, commercial complexes, community halls, malls, choultries, hotels, schools, charitable trusts and colleges. For the guidance value-based Property Tax collection, all the properties in the city have been assessed based on the feedback received from all the nine MCC Zonal Offices and documented.

The guidance value is calculated considering the current market conditions and potential and by hiking the guidance value by 30 to 50 percent, the Government aims to reduce the gap between guidance value and actual property prices.

Tax rate influencers

The key influencers of guidance value are location (good connectivity and infrastructure) type of property and usage (residential, commercial, agricultural or industrial), infrastructure development (connectivity, landmarks and public transport) and superior amenities. Accordingly, Property Tax in areas having these influencers will see an increase, MCC Commissioner Dr. Madhu  explained.

“There is no uniform Property Tax in Mysuru and it will differ from area to area based on the key influencers. For example, the tax rates in the Central Business District (CBD) will go up along with other commercial areas based on the land use,” she added.

It may be mentioned here that the MCC Council increased Property Taxes by 15 percent which came into effect from Apr. 1, 2021. Subsequently, the Property Tax was not increased in 2022 and 2023 as the elected representatives opposed it, terming it an anti-people move.

Avail five percent rebate

The MCC has extended a five percent discount as per the Karnataka Municipal Corporation Act, 1976, to property owners, who pay their revised Property Tax for the year 2024-25, in April 2024. In a press release, the MCC Commissioner said that the five percent rebate on Property Tax will be in force in April and property owners can avail this benefit till Apr. 30 on all working days. Payment can be made at all MCC Zonal Offices.