Property Tax to undergo revision every year to raise revenue

Bengaluru: In an effort to raise revenues of cash starved City Corporations, the State Government on Monday passed an Act in the Legislative Council that allows yearly upward revision of tax on properties coming under all City Corporations of the State, barring Bruhat Bengaluru Mahanagara Palike (BBMP).

The Act enables yearly enhancement of property tax in the range of 3 to 5 percent in all 10 City Corporations — Mysuru, Davangere, Ballari, Tumakuru, Shivamogga, Hubli-Dharwad, Belagavi, Vijayapura, Mangaluru and Kalaburagi — in the State .

Earlier, the property tax used to generally undergo a revision once in three to five years, when the Government raised taxes by 15 to 30 percent at once. But the new Bill will allow the City        Corporations to enhance property taxes in their limits by 3 to 5 percent every year.

Despite stiff opposition from the Opposition Congress and JD(S), Urban Development Minister Byrati Basavaraj moved  the Karnataka Municipal Corporations Amendment Act – 2021, which was passed by the Council by a voice vote. As the Act was passed, Congress members walked out in protest. Byrati defended the Act saying that the Corporations will get more grants from the Centre if they generate more revenues and the amended Act will help the Corporations considerably enhance their revenues.