Taking a tough stand against property tax defaulters, the municipal corporation has issued attachment notices to 1,055 defaulters who have not paid the provisional property tax bills issued until December 31, 2010.
The Brihanmumbai Municipal Corporation (BMC) is in the process of changing the system of calculating property tax from rateable value to capital value to bring about parity in taxation in the island city and suburbs. The new calculation will be applicable in retrospective effect from April 1, 2010.
In the amended law that was passed by the legislature, section (212) of the BMC Act, under which a reminder notice called the Notice of Demand was given to the taxpayer after the deadline for the payment had expired, has been done away with.
“In the newly processed bill, we will also give them the penalty amount to be paid after the due date. So, if they fail to pay the bills 15 days after the due date, we will issue attachment notices to them,” said an official from the civic assessor and collector department on condition of anonymity.
Rajiv Jalota, additional municipal commissioner, said that these steps were being talking in accordance with the law to meet the estimated property tax collection. Data shows that 79 attachment processes have been initiated in the island city, 263 in the eastern suburbs and 713 in the western suburbs.
“If the bills are not paid within 21 days after the notice has been served, the property will be auctioned,” said a senior civic official. Until February, the property tax collection is Rs1,877 crore, about 7% less compared to last year Rs2,029 crore.