Get ready to shell out more for property tax if you live in the island city.
From April 2010, those living in the island city will have to pay up twice as much the property tax they currently pay. Those in the suburbs will end up paying lesser — about 70-75 per cent of what they pay now.
The Brihanmumbai Municipal Corporation (BMC) has already started formulating rules for this purpose. On Wednesday, a presentation will be made to all top leaders of the corporation.
The Legislature has already amended property tax laws and the civic corporation will bring in the new tax regime from the next financial year.
Civic sources also said commercial properties in the island city would have to pay thrice as much the extant tax amount.
In the island city, residential properties of up to 500 sq ft area will be exempted from a tax hike for the first five years, after which it could be hiked. The hike will not be over 40 per cent of the last tax amount paid.
Properties with over 500 sq ft area may see a 100 per cent rise with immediate effect.
In the suburbs, property tax bills could see a rebate of up to 25 or 30 per cent.
The BMC has started the process of formulating rules to help implement the new system.
Civic estimates have it that there are about 3.5 lakh properties across the city and its suburbs. The BMC does not have any record for over 1 lakh properties.
It may be noted that the corporation will impose property tax on slums for the very first time.
A survey will be done to estimate the number of slums. A flat nominal tariff will be levied for all slums in the city and suburbs.
“It does not mean that the slums will become authorised,” said a source from the BMC.