HDMC Achieves Nearly 50% Property Tax Collection in First Quarter
The Hubballi-Dharwad Municipal Corporation (HDMC) has reported collecting nearly 50% of its total property tax target within the first three months of the current financial year. This achievement comes amid rapid urbanisation, which has made it challenging to bring all properties under the tax net and fix appropriate tax rates.
Details of the Collection Drive
According to HDMC officials, the corporation has collected property tax from over 4.2 lakh properties so far, accounting for close to half of the annual target. The tax collection drive was intensified at the start of the financial year, with the civic body deploying special teams to reach out to property owners and ensure timely payments. The HDMC has set a total property tax collection target of approximately Rs 450 crore for the current fiscal year.
The corporation has been leveraging digital payment options and door-to-door campaigns to improve compliance. Officials noted that the early collection has provided a financial cushion for the civic body to undertake infrastructure and development projects.
Challenges in Tax Collection
Despite the positive start, the HDMC faces significant challenges in bringing all properties under the tax net. Rapid urbanisation has led to the proliferation of unauthorised constructions and properties that are not registered with the corporation. Many property owners have been reluctant to pay taxes due to disputes over property classification or tax rates.
HDMC Commissioner, speaking on condition of anonymity, said, "Our focus has been on simplifying the payment process and encouraging voluntary compliance. However, we still have a long way to go in covering all properties and ensuring a fair tax structure."
Impact on Civic Services
The early collection of property tax is expected to boost the HDMC's ability to fund essential services such as waste management, road maintenance, water supply, and street lighting. The corporation has planned several new projects in the current fiscal year, including the expansion of sewage networks and the development of public parks.
Property tax remains the primary source of revenue for the HDMC, accounting for over 60% of its total income. The success of the collection drive will be critical in determining the pace and scale of urban development in Hubballi-Dharwad.
Way Forward
To sustain the momentum, the HDMC plans to conduct regular awareness campaigns and provide incentives for early payment. The corporation is also considering a revision of property tax rates to reflect current market values, which could help increase revenue in the long term. However, any revision would require approval from the state government and may face resistance from property owners.
