The incident occurred yesterday when Adinarayana, a poultry farm owner-cum-farmer, hanged himself, they said.
A case for abetment of suicide was registered against municipal officials following a complaint by the deceased's family members.
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They alleged that Adinarayana took the extreme step due to humiliation after municipal authorities, in order to "shame" him over outstanding property tax dues, parked a garbage loaded tractor in front of his house, Punganur Circle Inspector Chandrasekhar said.
The municipal authorities said that no one was at the house and the garbage tractor stopped there only due to a technical snag.
However, locals held a protest over the incident and demanded stern action against the municipal officials for resorting to such acts.
Adinarayana apparently owed Rs 4.7 lakh property tax to the municipal body, police said.
"Following a complaint, we have booked a case under section 306 of IPC and the truth will come out during the course of investigation," the inspector said.