SAS system for property tax has been in place for more than three years. It still has many wrinkls that need to be ironed out.
1. Property tax can be paid in banks and the stamped challan has to be submitted to Mysore City Corporation within 30 days. If this is not done, the 2007 SAS handbook of MCC prescribes a fine of Rs. 100 (p.12) . But the forms at the end of the book prescribe a fine of Rs. 200! Which is right?
2. Property tax has to be paid by June 30 of every year. Sec. 112(4) of the Karnataka Municipal Corporations Act levies a penalty of 2% per month for delay in payment. But this penalty is only on the property tax and not on the various cesses (including solid waste management cess) that are levied along with the property tax. This is not right. The law has to be amended to make the late payment penalty apply to the cesses as well..
3. The Property Tax calculator on the MCC website adds 10% for the property tax on corner sites. Tax preparers at MCC offices were adding 20% for corner sites till last year. Have the rates been changed?
4. The Property Tax calculator on the MCC website can calculate only for the current year. What should people who have not paid last year's tax do? Therefore the calculator should be modified so that it calculates tax for previous years also.
5. MCC says that property tax can be paid in any one of four banks, Axis, SBM, Vijaya and Syndicate. But last year, only Axis challans were available and it was not possible to pay in other banks. Has MCC taken any steps to change the situation?