BELAGAVI: The Belagavi City Corporation (BCC) has updated property tax rates effective April 1, aiming to generate an additional Rs 2-3 crore in annual revenue. The tax rate for residential properties will rise by 3%, while commercial and industrial properties, along with all types of real estate plots, will see an increase of 4%. Owners can benefit from a 5% discount if the total tax is paid by the end of April.
According to BCC sources, there are currently over 1.5 lakh properties, including residential and commercial. Historically, these properties generated about Rs 75 to 80 crore annually in taxes, but with the new 3% increase, the target for annual tax collection is expected to exceed Rs 100 crore.
BCC officials noted that the corporation anticipates collecting an additional Rs 4-5 crore in taxes from new commercial constructions and layouts. However, they also revealed a tax leakage of Rs 8 to 10 crore each year due to inconsistencies in property measurements, lack of records, and staff negligence.
While BCC officials are taking action against those with minor tax arrears of Rs 2,000 to 3,000, they have yet to address the cases of individuals with larger debts of Rs 5 to 10 lakh.
Revenue department sources have indicated that collecting tax arrears has become a significant challenge for the BCC. The outstanding tax amounts were 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 the BCC Revenue Department, pointed out that certain commercial and residential properties within Gram Panchayat areas are receiving services from the BCC while paying taxes to the gram panchayats, leading to financial losses for the corporation.
Kartik M, the BCC Commissioner, confirmed the government’s directive for a property tax increase between three to five percent, with only a 3% raise being implemented from April 1, for the public’s benefit.
