Mysuru City Corporation introduces motor vehicle cess, increases property tax by 3%

Mysuru City Corporation (MCC) has announced the levy of motor vehicle cess on properties within its limits in addition to revising the property tax by 3% for the year 2026-27.

According to a public notice issued by the MCC Commissioner, a Motor Vehicle Cess of ₹100 for two-wheelers, ₹200 for three-wheelers, and ₹500 for four-wheelers will be collected along with property tax for the year 2026-27.

The imposition of Motor Vehicle Cess for the first time in Mysuru city has drawn flak from the opposition with former mayor Shivakumar accusing the government of Karnataka of ‘fleecing money from the public through whatever means available’ to fill up its empty coffers.

The levy of Motor Vehicle Cess comes a year after the introduction of garbage collection cess and collection solid waste management fee from property owners with effect from April 2025.

The MCC public notice stated that it was resolved at its council meeting to revise the property tax rates for properties in MCC limits by a minimum of 3%, or in accordance with the prevailing market guidance value, whichever is higher, effective April 1, 2026.

However, a rebate of 5% will be available to property owners if the tax is paid in the first month of the financial year — April 2026.

The MCC Commissioner, in the public notice, said the revision of property tax was in accordance with amendments to Sections 108, 109 and 109-A of the Karnataka Municipal Corporations Act 1976, and the levy and collection of Infrastructure (Motor Vehicle) Cess under Section 103-B and Schedule III, Rule 7-B of the said Act.

The MCC’s public notice also referred to a letter from the Directorate of Municipal Administration stating that the property tax under the Act shall be increased by 3% to 5% in the years when there is no revision in the guidance value of properties. “Necessary steps have been taken to update the property tax calculator with revised rates by March 2026”.

The MCC said that it was empowered to levy and collect an Infrastructure (Motor Vehicle) Cess in addition to the existing motor vehicle tax under Section 103-B of the Karnataka Municipal Corporations Act 1976 notwithstanding anything contained in Section 19 of Karnataka Motor Vehicles Taxation Act 1975.

The Act provides for imposition of cess on every motor vehicle suitable for use on city roads, at a rate not exceeding ₹500 per annum, with provision to fix different rates for different categories of vehicles, the MCC’s public notice stated.