HDMC collects highest property tax in a financial year

Hubballi

In a major financial milestone, the Hubballi-Dharwad Municipal Corporation (HDMC) has, for the first time, collected Rs200.10 crore in property tax within a single financial year. The total revenue generated from all sources during 2025–26 stood at Rs260.86 crore, marking a sharp increase compared to Rs192 crore in the previous financial year. The corporation achieved this record by the end of the financial year on March 31, 2026. Officials attribute the surge in revenue primarily to the revision of property tax rates and the implementation of Solid Waste Management (SWM) fees. A detailed breakdown of revenue sources indicates that property tax remained the largest contributor at Rs200.10 crore.

This was followed by Rs79 crore from building permission and completion fees, Rs9 crore from stallage, Rs4.3 crore from trade licenses, and Rs5.58 crore from advertisement fees. Additional income was generated through trade licenses, road cutting charges, optical fibre cable (OFC) laying permissions, mobile tower installations, and plumbing licenses. The property tax collection trend over the past five years shows steady growth, rising from Rs88.58 crore in 2021–22 to Rs200.10 crore in 2025–26, against a demand target of Rs228 crore for the current year. Speaking on the achievement with News Trail, H.Y. Asangi, HDMC, Deputy Commissioner, Revenue, attributed the success to the mandatory integration of tax payments with E-Swatthu (electronic property records).

This system ensures that property owners cannot proceed with legal transactions or transfers without clearing outstanding tax dues. "Our collection efficiency has jumped from the usual 70% to a record 82% this year," Asangi stated. "Beyond the digital mandate, aggressive field reviews and proactive efforts by bill collectors across all zones played a crucial role." The corporation is now looking toward technology to further bolster its revenue. A GIS-based (Geographic Information System) survey is currently in its pilot phase in Zone 5, he said. Staff are currently using specialized mobile applications to map properties and verify data on the ground.

Following the successful completion of the Zone 5 pilot, the GIS mapping will be expanded to cover all 12 zones of the twin cities, he said. Despite the record numbers, the DC Revenue noted that "open land" remains a challenge. Since these plots do not utilize municipal services like water or sanitation, owners often delay payments until the point of sale or construction. With the GIS survey expected to bring more properties into the tax net and a proposed 5% tax revision for the upcoming year, the HDMC has set an ambitious target of Rs 333 crore for the 2026-27 period.

The twin cities of Hubballi and Dharwad currently have around 3.89 lakh properties, including residential, commercial, and vacant land. Looking ahead, the corporation has set an ambitious target of Rs333 crore in revenue for the 2026–27 financial year. Plans to achieve this include conducting a GIS-based survey and implementing a 5% increase in property tax rates.