A delegation from Mysore Grahakara Parishat met MCC Commissioner K.S. Raykar recently and apprised him of violation of the Karnataka Municipal Corporations (KMC) Act in the implementation of SAS scheme for property tax by Mysore City Corporation. The delegation consisted of President Maj.Gen.(Rtd.) S.G. Vombatkere, Treasurer P.M. Bhat and S.A. Prasad. The Revenue Officer of MCC, Ms. D. Bharathi also attended the meeting. The Commissioner, who revealed that it was he (while posted in Bangalore) who drafted the relevant amendments to the KMC Act, agreed with MGP's contention and promised to instruct the concerned personnel at all MCC ward offices to follow the law strictly.
The MGP delegation pointed out the following violations of the law.
Despite the fact that Sec. 109A (amended in 2005) of the KMC Act clearly states that the same property tax collected in 2005-6 should be collected in 2006-7 and 2007-8, MCC collected enhanced property tax in 2007-8 based on guideline property values revised effective from 24-7-06. Property tax rates were also enhanced from 0.3% to 0.6% in 2007, again in contravention of Sec. 109A of the KMC Act.
According to this Sec. 109A, property tax stands enhanced by 15% for 2008-9 and this enhanced value will remain unchanged till 2011-12 when it will again be enhanced.
If MCC follows Sec. 109A strictly, one does not have to do any calculation at all on the tax form. The property owner can submit a copy of an earlier year's filled and paid tax form and that will fix how much he/she has to pay this year. No fresh calculations are necessary (unless the building is altered).
Sec. 109A gives power to the state government to introduce the 15% enhancement earlier than three years. But it can only advance the enhancement date. Using revised property values as the basis for tax calculation, as was done in 2007, is not permitted.
Sec. 109A also gives power to MCC to increase the enhancement rate (at the end of every three years) from 15% subject to a maximum of 30%. But it has to pass a resolution at the council meeting. MCC has no power to increase the tax rates. So the increase from 0.3% to 0.6% introduced from the beginning of 2007 is illegal.