Residents in Hubballi- Dharwad facing heat of tax hike

Dharwad: Residents in the Hubballi-Dharwad metropolitan area are feeling as if they now live in rented homes rather than their own, following an unexpected increase in property tax by the Hubballi-Dharwad Municipal Corporation (HDMC). This situation has become a topic of public discourse, as citizens express their discontent over the recent hike in property tax.

The tax hike is in accordance with government regulations, but HDMC officials have stated that they cannot do anything about it, even as members from the ruling BJP are voicing their dissatisfaction over the property tax issues. In the meantime, the Karnataka Chamber of Commerce has held a meeting against this tax increase, urging residents of the twin cities not to pay the tax for the next 15 days. They have called for a collective effort to protest and press the administration to reconsider.

The municipality has been tasked with assessing the updated market value rates for properties, and property tax is being levied accordingly. This should have been done since 2019 but has yet to be completed, leading to the current crisis. In some areas, market prices have doubled or tripled, resulting in increased taxes on various properties.

Every year, the municipal authority is allowed to raise property tax by 3%. They also have the option to increase it by up to 5% based on local needs and developments. However, there have been no property tax increases in the years 2022, 2023, and 2024, with the explanation being the upcoming legislative and parliamentary elections. It has become apparent that increases were avoided to prevent public backlash.

Now, residents are facing an accumulation of tax hikes from those three years plus the current year’s 3%, resulting in an overall increase of about 18% in property tax. Additionally, properties are being taxed according to current market values, leading to significant hikes in taxes for individual properties, with some taxes even doubling. Alongside this, charges for solid waste management and UGD maintenance are also being collected, contributing to the rising public outrage.

The state government has enacted rules requiring tax assessments to reflect current market values due to amendments to the KMC Act. As a result, the municipality has limited options to address residents’ concerns. Even though officials claim they empathize with the public, the administration appears unable to take action.