In April 2020, amidst the COVID-19 crisis, the Mysore City Corporation (MCC) launched an online service to facilitate property tax payments, providing residents with a convenient way to manage their taxes from home. This initiative minimised the need for in-person visits to government offices, ensuring safety and accessibility for all property owners.

Property taxes are essential for generating revenue that supports the maintenance and enhancement of Mysore’s infrastructure. Whether you are a first-time homeowner or a long-time resident, understanding what is property tax in Mysore is crucial for avoiding unnecessary complications and ensuring compliance with local regulations.

In this article, we will guide you through the formula, calculation, stepwise payment process, exemptions, and penalties of the Mysore City Corporation property tax.

Mysore Property Tax Formula

The Mysore City Corporation property tax can be calculated using the following formula:
Property Tax = Base Value x Built-Up Area x Age Factor x Type of Building x Category of Use x Floor Factor
The various factors affecting the Mysore property tax are:

• Base Value: Standard rate set by the MCC
• Built-Up Area: Total property area (in square feet)
• Age Factor: Older properties may have lower value
• Type of Building: Whether the property is residential or commercial properties
• Category of Use: Whether the usage is industrial, residential, or commercial
• Floor Factor: Adjusts for the number of floors

How Is Mysore Property Tax Calculated?

The Mysore City Corporation property tax is calculated by following these steps:

• Determine ARV (Annual Rental Value): The ARV is the estimated annual rent that your property could potentially generate based on factors such as its location, size, and type.
• Apply Taxes: The property tax is estimated by multiplying the ARV by the applicable tax rates. These rates vary based on the type of property (residential, commercial, etc.) and its intended use.
• Apply Exemptions: Certain property types, like those used for charitable and educational purposes, are eligible for tax exemptions and deductions. Property owners should check the eligibility criteria set by the Mysore City Corporation.
• Add Additional Costs: Costs like lighting, cleaning, and other regional charges may be applicable to calculate the final Mysore property tax amount.

How To Pay Mysore Property Tax Online?

Mysore property tax online payment is a simple process for residents. Here’s a step-by-step guide to walk you through it:

• Go to the Mysore City Corporation's official website and select “Mysuru” under the “City” section.
• Register by entering your details (name, phone, email ID, etc.) and create login credentials.
• Login and choose “Property Tax Payment Online” under the “Available Services for Mysuru” menu.
• Enter the Property Identification Number (PID) Number and click on the search button to access your property details.
• Fill in the required applicant information, such as property number, bull number, mobile number, and ward number.
• Select the radio button for the appropriate payment year corresponding to the amount you need to pay.
• Choose your preferred payment method (net banking, UPI, debit card, or credit card). Make sure to read and tick the checkbox for terms and conditions.
• Click on “Continue for Payment,” and then confirm by tapping “OK” to complete the payment of your Mysore property tax online.

Exemptions from Payment of Mysore Property Tax

Certain property owners are relieved from paying the Mysore property tax. The types of properties that qualify for such exemptions include:

• Religious Institutions: Properties like temples, churches, mosques, and other religious buildings that are not used for commercial purposes are fully exempted from paying the Mysore property tax.
• Properties Owned by Government: Schools, hospitals, and other types of properties that provide public services and are owned by government bodies are generally exempt from Mysore property tax.
• Charitable Organisations: Properties owned by registered charitable institutions that focus on social services or community development may qualify for partial or full Mysore property tax exemptions.
• Properties Owned by Serving and Ex-Servicemen: Current and former defence personnel, including those who have served in the Army, Navy, or Air Force, are entitled to full Mysore property tax exemptions.

These exemptions help to ensure that essential services, social contributions, and national services are valued and supported through reduced tax burdens. If you fall into either of these categories, make sure to verify your eligibility with the MCC to access the relevant Mysore property tax exemptions.

Delayed Payment And Penalties

Failing to pay the Mysore property tax on time can result in significant financial consequences. The Mysore City Corporation tax rules state that a penalty of 2% will be imposed every month on any outstanding tax dues. Since this penalty compounds monthly, the total amount owed can escalate quickly, making timely payments essential to avoid increased costs.
Additionally, properties lacking a Completion Report (CR) may face even higher penalties as per the Mysore City Corporation tax guidelines for non-compliance. Frequent missed payments on the Mysore property tax may lead to legal action against the property owner, and restrictions may be placed on property-related transactions until all outstanding dues are cleared. To avoid these penalties and complications, it is crucial for property owners to stay informed about their tax obligations and make payments on time.

Latest News On Mysore Property Tax

For the first month of FY 2024-25, the MCC successfully collected 46%  of the property taxes owed. To incentivise property owners to settle their tax dues promptly, the MCC introduced a limited-period offer of a 5% rebate  for payments made by April 30, 2024. This initiative aimed to encourage timely payments and reduce the financial burden on property owners.
For those who were unable to meet the initial deadline, the MCC extended the grace period first to July 31, 2024 , and then further to September 14, 2024 . This extension included a 50% reduction in penalties, allowing property owners to pay their outstanding Mysore City Corporation property tax dues without incurring additional interest charges.

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Conclusion

The online portal hosted by the Karnataka state government has streamlined the process of paying the Mysore City Corporation property tax. Simply visit the official Karnataka One portal and follow the steps mentioned above to stay up-to-date with your tax obligations.

Understanding how to pay property taxes online in Mysore is crucial for potential property buyers, as it provides insight into the expenses associated with homeownership. To help manage these expenses, consider a home loan from SMFG Grihashakti. Eligible candidates can apply for loans of up to INR 1 crore* at competitive interest rates. Apply online today or contact us for more details.