Bill on property tax during Monsoon Session of Mah legislature
Mumbai, June 29 (UNI) Maharashtra government today said it will introduce a bill in the Monsoon Session of the State Legislature on the levy of property tax and on improving the finances of urban civic bodies.
Addressing a conference, government spokesman and Urban Development secretary Dr J M Phatak said the State Cabinet yesterday had decided to provide an option for calculating property tax with capital value as the base, apart from the existing rateable value.
The civic bodies will have to decide the option.
He said the capital value will be calculated at market rate. The bill will have a provision to allow for the revision of the capital value every five years. The rateable value was never revised.
Property tax, calculated on rateable value, was the expected rent of a building in the year of construction. The rates were revised over the years but the rateable value remained the same, he pointed out.
Currently, property tax is levied based upon the annual rent of the building, capital value of the land, and cost of the land. The proposed bill will also seek to remove the anamolies in the property tax in Mumbai city and its suburbs.
Bangalore and Patna are already levying property tax based on capital value, he informed.
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