Tax defaulters warned of property seizure

Deadline of MCC Property Tax payment without 2 percent penalty ends on Oct. 31

Mysore/Mysuru: Property Tax collection including the dues of 2019-2020 amidst COVID-19 has become a headache for Mysuru City Corporation (MCC) that has now warned residents that their properties would be seized if they do not pay up the taxes within the next 30 days starting today (Sept. 2). 

In a notice published in today’s newspapers signed by MCC Commissioner Gurudatta Hegde stated that in the tax year 2019-2020, over 78,569 property owners have not paid their taxes despite giving five percent rebate and issuing notices and also giving time till March this year. Similarly, for the tax year 2020-2021, only 81,000 people have remitted their taxes with 1,02,000 property owners not paying up. 

The Commissioner’s notice said that this year due to pandemic and considering several other financial factors, the annual five percent rebate was extended from April 2020 to July 2020. Despite these relaxation, 1,02,000 property owners have refused to comply.

“These defaulting tax payers will be given an ultimatum notice to pay the dues within 30 days starting Sept. 2 (today) failing which properties would be seized,” the notice said. 

Keeping the pandemic in mind, the State Government has given an opportunity to property owners to pay taxes till Oct. 31 without the two percent penalty. “Property owners are hereby requested to make use of this opportunity and pay taxes by Oct. 31 lest their properties are liable to be seized,” the MCC Commissioner’s notice stated. 

As soon as the lockdown ended, people started lining up before the MCC Zonal Offices to pay their taxes and the revenue collection saw a spike in the last week of July. Property owners made use of the five percent rebate and remitted taxes. 

However, the revenue generation slowed down after the initial spike worrying the already cash-strapped MCC. Till July 25, Rs.46.59 crore was collected from a total of 59,058 property owners. The numbers grew to 81,000 property tax payers with pending taxes from over 1,02,000 property owners. 

MCC Deputy Commissioner (Revenue) Kumar Naik told Star of Mysore that the MCC will begin issuing individual notices to tax defaulters from tomorrow. “Along with this, we have formed teams for door-to-door tax collection where MCC officers and staff would visit each house and collect pending dues. At the same time, we will start the process to seize the properties after Oct. 31,” he said. 

Online system fails to take off

This year, the MCC had also promised that it will introduce online Property Tax payment system to enable property owners to pay tax from the comforts of their homes. But this ambitious scheme too is yet to take off. The MCC Commissioner wrote a letter to the Government on Mar. 27 seeking permission to introduce online tax payment system but there has been no response from the Government. 

Also, it has come to the notice of the MCC that several traders in Mysuru are indulging in trade without obtaining Trade Licences. They have been asked to obtain the Trade Licences from the MCC after paying the prescribed fee. If they continue their business without Trade Licences, action would be taken against them under Karnataka Municipal Corporation Act. 

This post was published on September 2, 2020 6:44 pm