Karnataka - Hassan   

SAS-based property tax to stay in Hassan

By Our Staff Correspondent

HASSAN, NOV. 22. The President of the Hassan City Municipal Council (CMC), G.T. Kumar, said on Monday that the Self-Assessment Scheme (SAS) was in vogue and there was no change in the procedure for collection of property tax under it. Property owners could file their returns in specified forms limiting the tax to two and a half times the tax assessed for 2001-02.

Addressing presspersons here, he said property owners had been requested to pay tax according to the provisions of the scheme to facilitate the development of the city. The tax for 2002-03, 2003-04 and 2004-05 should not exceed two and a half times that fixed for 2001-02. The tax under SAS or two and a half times the tax assessed for 2001-02, whichever was less, would be collected by the CMC.

Penalty

The property tax for 2002-03 and 2003-04 should be paid before December 31, 2004, if not, a penalty at the rate of two per cent of the tax per month would be levied. The property tax for the current year should be paid before March 31, 2005. It could be paid later with a penalty at the rate of 2 per cent of the tax per month, he said.

Mr. Kumar said the CMC had collected Rs. 2.40 crores under the scheme. It had to collect Rs. 6.60 crores more.

A sum of Rs. 10 lakhs was due to the CMC from the previous scheme. On the stay granted by courts in neighbouring districts on the collection of tax under SAS, he said that he was not aware of it. The Urban Development Department had directed all CMCs to collect property tax according to the new scheme.

Liability

The CMC had a liability of Rs. 4.78 crores, excluding a Rs. 1.20-crore tender for sanitation work. The CMC had to clear bills amounting to Rs. 1 crore and Rs. 42 lakhs towards street lighting. It had to pay Rs. 14 lakhs for water supply. The CMC had to clear dues amounting to Rs. 2.51 crores to Mangalore Electricity Supply Company (MESCOM), Mr. Kumar said.

The CMC Commissioner, B.A. Paramesh, said the CMC would take steps to collect tax. Of the Rs. 1.50 crores water tax due, the CMC had recovered Rs. 45 lakhs, and of the Rs. 25 lakhs rent from stalls, it had recovered Rs. 12.72 lakhs. Steps had been taken to revise the rent. Though the CMC was getting Rs. 2.50 crores a year from the State Finance Commission in lieu of octroi, it was inadequate to take up development works. However, the CMC had collected Rs. 25 lakhs, he added.

Revenue

The CMC was planning to auction a piece of land at Bamboo Bazaar. It expected Rs. 10 crores from the auction. A proposal in this regard had been sent to the Urban Development Ministry, Mr. Kumar said.

He said though the financial position of the CMC was poor when he assumed charge as its President, he had succeeded in clearing pending bills amounting to Rs. 1.30 crores. Work on the damaged roads would be taken up by December end at a cost of Rs. 75 lakhs.

Though the Bangalore-Mangalore Road, which passed through the city, was under the Public Works Department, the CMC had taken up the repair work for the convenience of the people.

However, it needed Rs. 1 crore a year to maintain roads.

He said Rs. 2 crores had been earmarked for constructing a drainage system in the city. A sum of Rs. 4.5 lakhs would be spent on removing silt from the drains, he added.

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SAS-based property tax to stay in Hassan

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