The COVID-19 pandemic-induced blow to the economy has brought an alleged anomaly in the levy of property tax for certain commercial establishments in Mysuru into sharp focus. Marriage choultry owners have now joined hotel owners and film exhibitors in calling for scrapping of the “super commercial” category in property tax structure.
After hotel owners and film exhibitors in Mysuru expressed their ire over the exorbitant amount of property tax they have to cough up, it was the turn of a delegation from Mysuru Kalyana Mantapa Owners Association to submit a memorandum to Mayor Tasneem, requesting the Mysuru City Corporation (MCC) to pass a resolution to scrap the “super commercial” category.
Association president K.R. Sathyaranarayan told The Hindu marriage choultry owners are reeling under an unprecedented economic crunch due to the restrictions on gatherings for marriages and other events. The marriage choultry owners had suffered huge losses due to cancellation of the marriages booked after March 2020.
Also, the future looks gloomy with marriages of large gatherings unlikely to return at least till March 2021 as the authorities have placed a ceiling of on the number of attendees at such events.
Hence, he said the Association had urged the MCC authorities to waive the property tax applicable on marriage choultries for the year, besides scrapping “super commercial” category that had caused a financial burden on the owners, who already have to bear GST, electricity bill, water bill, and trade licence fee, besides the salaries of the personnel and security.
Mysuru Hotel Owners Association President Narayana Gowda said the MCC created the “super commercial” category for property tax payment about 12 years ago.
While the domestic or residential category of property owners pay about 0.9 per cent of the guidance value of property as property tax, commercial category of property owners pay about 1.5 per cent of its guidance value, Mr. Gowda said adding that the “super commercial” category of properties such as marriage choultries, malls, hotels and lodges, besides movie theatres, pay 2.28 per cent.
Mr. Sathyanarayana contended that the choultry owners will be able to save about 25 to 30 per cent of the tax if they are brought under the commercial category.
Mr. Sathyanarayana and Mr. Narayana Gowda said the “super commercial” category of property tax payment is not in vogue in any other part of the State including Bengaluru. “It is a huge burden on the businesses in Mysuru”, said Mr. Gowda, calling for its immediate scrapping.
While the Mayor assured the delegation of marriage choultry owners that the matter will be taken up in the MCC council meeting, sources in the MCC said any change in the tax structure needs to be brought before the council and an approval needs to be secured to bring about any change in the by-laws.