BCC fires off property tax surge: Homes up 3%, commercial & industrial rates jump 4%

Belagavi: The Belagavi City Corporation (BCC) has revised property tax rates effective from April 1, targeting an additional Rs 2-3 crore in annual revenue. For the upcoming fiscal year, the tax rate for residential houses increases by 3%. Both commercial and industrial buildings, along with all types of real estate plots, will see a 4% increase. Property owners can avail a 5% discount if the total tax is paid by the end of April.According to BCC sources, currently, there are over1.5 lakh properties, including houses and commercial buildings. These properties used to collect Rs 75 to 80 crore in tax annually. Now, with a 3% increase in property tax, the annual tax collection target is likely to cross the Rs 100 crore mark.BCC officials said that the corporation is expected to earn an additional four to five crore rupees in tax from the constructions of commercial industries and new layouts. However, due to fluctuations in property measurements, lack of records, and staff negligence, tax leakage of Rs 8 to 10 crore is taking place annually.However, the elected members of BCC said that officials are taking action against those who have arrears of Rs 2,000 to 3,000 in tax, but no action is being taken against those who have arrears of Rs 5 to 10 lakh rupees.According to sources from the revenue department of BCC, the tax arrears collection is now becoming a major challenge for BCC. The tax due was Rs 5.8 crore in 2021, Rs 4.08 crore in 2022, Rs 7.4 crore in 2023, Rs 4.6 crore in 2024, and Rs 7.5 crore in 2025.Siddu Hulloli, commissioner of revenue department of BCC, said it is observed that few commercial and residential properties within the jurisdiction of a Gram Panchayat are receiving BCC services. The owners of the property are paying tax to gram panchayats due to lower tax rates. This has increased financial loss for BCC. It is being taken seriously.Kartik M, the Commissioner, BCC, said that the govt has issued a directive to increase property tax by three to five percent. In the public interest, the tax increase is being implemented from April 1 with a tax increase of only three percent.