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Property tax notice to Nanded City sparks debate over township rules

Question raised by the residents of Nanded City over property tax bills sent by PMC recently has triggered a debate in civic circles whether township residents should pay it

Updated on: Dec 19, 2023, 07:30:16 IST
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Pune: The question raised by the residents of Nanded City over property tax bills sent by the Pune Municipal Corporation (PMC) recently has triggered a debate in civic circles whether township residents should pay it.

Question raised by the residents of Nanded City over property tax bills sent by PMC recently has triggered a debate in civic circles whether township residents should pay it. (RAVINDRA JOSHI/HT)
Question raised by the residents of Nanded City over property tax bills sent by PMC recently has triggered a debate in civic circles whether township residents should pay it. (RAVINDRA JOSHI/HT)

The residents last week claimed that they have paid a one-time development charges to the developer and are not using civic amenities inside the premises, and therefore not liable to pay civic taxes.

As per the township act, residents should get discount since they are not using many of the civic amenities. There are three townships in Pune, including Magarpatta City, Nanded City, and Amanora, housing thousands of residents.

The PMC property tax department on Monday clarified that the bills had been issued as per the legal provisions to residents living at Nanded City who are using other civic infrastructure.

As PMC had issued the property tax bills for the first time to Nanded City residents, the latter have claimed that they are not taking the benefit of civic amenities and have paid a one-time maintenance to the developer while purchasing the flat.

Ajit Deshmukh, head, PMC property tax department, said, “As per the township act, the state government waive off property tax for townships for 10 years or till the township is developed. Once the occupancy and completion certificate is issued, the residents need to pay the property tax.”

According to Deshmukh, townships like Nanded City on Sinhagad Road was merged in PMC recently and was not under the property tax purview as it fell under the local gram panchayat.

PMC has applied 33.5 per cent tax with effect from 2021.

“The amount looks high as it covers three years. From next year, residents will get bills for only 33.5 per cent,” said Deshmukh.

Civic officials clarified that the same rebate has also been offered for property tax to other townships like Amanora and Magarpatta City. “Nanded City residents have raised objection as they are receiving property tax bills for the first time,” a civic official said on condition of anonymity.

Over 25,000 residents stay at various townships across the city.

Satish Magar, developer of Nanded City, said, “The residents would need to pay the tax as per the law. The waiver offered by PMC was for a limited period. All these things are mentioned in the agreement.”

According to a 2016 circular issued by the state’s urban development (UD) department, an integrated township that provides common amenities, utilities and infrastructure - like road, streetlight, garden, sewage treatment plant, solid waste management and transport facilities - will be entitled to a 66% rebate in property tax. The PMC officials said the civic body has accordingly granted the exemption to township residents.

Former deputy mayor Siddharth Dhende said, “It is a welcome move that the property tax has been applied for townships. The claim by citizens that they are not getting benefits of civic infrastructure is not true as they roads and other facilities.”

Former Congress leader Sanjay Balgude said, “By not applying tax, PMC is placing burden on common citizens.”

“If the residents of Nanded City submit the PT 3 form stating that they are living in their own flats, they would be eligible for 40 per cent concession in property tax,” a civic official said.