The municipal body is taking a step towards implement the new capital value based system of calculating property tax. Earlier, the property tax system was based on rateable value.
The Brihanmumbai Municipal Corporation (BMC) has announced the weightage value of the use of construction, age and the structure, which is the basis of the capital value-based property tax.
Capital value is a small part of new property tax. Capital value is the carpet area multiplied by the weightage value of
the building age, weightage value of usage type of construction. If one calculates the capital value multiplied by the rate of tax, which has not yet been fixed, it amounts to the new property tax.
The BMC has also asked citizens to provide suggestions and objections either on their website or at their ward offices within 30 days from Friday.
To know about the draft rules for fixing capital value-based property tax, one can buy documents from the local ward office for Rs 10 or get it on the website www.mcgm.gov.in.
On Friday, the BMC published a manual draft, which declared the weightage of value of constructions across the city. It provides relief to old structures, but gives more weightage value for high-rises. This means high-rises will have to pay more property tax.
“The civic body has decided to implement the new system from April 1, 2010, and the bill will be adjusted in next year’s property tax bills,” said Swadheen Kshatriya, municipal commissioner.
However, he did not comment on whether city has to pay more or suburban residents will get some relief in the tax.
The BMC has formed a three-member committee, comprising former civic commissioner D.M. Sukthankar, retired bureaucrat DN Chowdhary and architect Roshan Namavati, to make necessary changes in the current policy.