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Karnataka
Staff Reporter
Hosur: The State Government has removed the anomalies in the fixation of property tax in Hosur municipality and brought in a uniform tax structure to the relief of its citizens. There has been a bone of contention between people and the Municipal council since 1998 over the reported disparity in property tax. During the general revision of property tax taken up in 1998, the then Commissioner based on the available facilities and its proximity to important locations like the bus stand, hospital and highways demarcated the municipal limits as A, B and C zones respectively and fixed the property tax rate at Rs.2.50, Rs.2.00 and Rs.1.80 per sq.ft respectively. The Commissioner had proposed the hike to the Government without seeking the municipal council’s consent, say official sources. Infact, the Government had instructed the Municipality to impose the revised rates only for buildings built after October 1, 1998 while those built before 1998 were ordered to pay the existing tax rates of Rs.0.80, Rs.0.65 and Rs.0.50 for A, B and C zones respectively. Due to the steep disparity in property tax for different structures residents were reluctant to pay property tax. They alleged that the municipality had followed two different yardsticks while fixing property taxes. As a result more than 7,000 buildings evaded the tax net creating a revenue loss of Rs.13 crore to the municipality. According to Collector Santhosh Babu following repeated representations from the people, Minister of Local Administration M.K. Stalin deputed a committee to review the issue of property tax in the municipality. Based on the committees’ recommendations, the Minister ordered for the reduction of property tax slabs by 50 per cent for A, B and C zones respectively. Accordingly, the revised tax rates have been fixed at Rs.1.25, Rs.1 and 90 paise per sq. ft for A, B and C zones respectively.
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