The Municipal Administration Department has issued a notice of why the Belagavi City Corporation should not be dismissed due to its failure to increase Property Tax from the financial year 2021-22.
The Municipal Administration Department has given this warning, stating that a letter was sent to Mayor Shobha Somanache regarding this matter. As a result, the ruling group has become agitated and is seeking legal advice to understand the implications. They have also initiated discussions to increase the number of meetings.
Although the notice was received on Wednesday (11th), the ruling group has kept it confidential, fearing the dismissal of the ruling BJP corporators.
The Property tax has remained unchanged despite repeated instructions from the municipal administration. The Belagavi City Corporation has disregarded these instructions, leading to the warning of dismissal. The municipal administration blames the corporation for failing to implement government orders and instructions.
A warning letter has been sent to the mayor, highlighting the corporation’s lack of interest in following government directives. It also reminds the corporation of the government’s authority to dissolve it if it acts against its interests. The director of municipal administration emphasizes the urgency of increasing Property Tax and warns that failure to do so may result in a recommendation to dissolve the municipality.
According to the Karnataka Municipal Corporation Act, 1964 and the Karnataka Municipal Corporation Act, 1976, as amended under Chapter 45 of the Karnataka Stamp Act, 1956, Property tax should be determined based on the current year’s ready reckoner rate.
This year, it had been decided to increase the Property tax by three percent. However, a significant shift occurred during the September 16 meeting, leading to a change in this decision. In the current financial year of 2023-24, the plan to increase the rent by three percent has been reinstated, prompting the issuance of this notice. It is crucial to highlight that no decision has been made to raise the tax starting from the financial year 2021-22.
In instances where the rate remains stagnant, municipal bodies have enacted a law mandating a minimum three to five percent increase. Consequently, if the ready reckoner rate does not experience any changes in the year 2023-24, the Belagavi Municipal Corporation has been directed to implement a three to five percent rent hike. This proposal underwent thorough examination and approval during the general meeting, with the Directorate of Municipal Administration
Belagavi City Corporation has previously been dismissed twice, in 2005 and 2011.