Pay property tax arrears from Apr ’10

Mumbai: Come September and you will receive your "final bill" for property tax calculated under the newly implemented capital valuebased system that was approved last month. This spells bad news for owners of buildings, both residential and office complexes, which have come up after 2010 as they will have to pay property tax arrears from April 2010 in this financial year. 

    For older buildings, which have been receiving provisional bills, the final bill will be adjusted to reflect the outstanding or refund amount calculated according to the new system. Pay property tax early, rebate likely 
Mumbai: In September, property owners will not just receive a final property tax bill, but also a special notice that will reflect the property's capital value. The special notice will also entail space for objections and citizens will get 21 days to raise objection on the bill, if any. The notice will mention the area of the building for which property tax isto be charged, the new tax that hasbeen calculated,theoldtax rate, methodof the newcapital value-based tax, among other details of the new system. 
    S S Shinde, joint municipal commissioner, told TOI, "We are targeting end-August to send across the bills. Along with the bills, a special notice will also be sent. Every flat 
owner will be sent details such as the user category, nature of the building, floor number, etcetera – things that will determinethecapital valueofthe property." 
    The BMC is also working on incentivestolurecitizensto pay the bills on time. For instance, if the bills are paid before June 30, you can get a rebate of 2% to 4%. "We are working on the incentives. Thiswill also reflectin thespecial notice that will be sent along withthefinalbill,"said a senior official of the assessment and collection department. In case of late payment, apenalty wouldbeimposed. 
    According to the department, citizens will have to pay the difference amount between the new method and the old rateable valuesystem.Citizens will get approximately three months to pay the additional property tax based on the capital value for the past three years,sinceApril2010.In case after calculating the difference, a property owner has made excess payment, theBMC will refund the amount on an interest rate of 6.25%. "Thebillswill reflectthe retrospective amount," said Rajiv Jalota, additional municipal commissioner. 
    The BMC's standing committee had approved the new capital-value system, which bases taxes for all buildings (old and new) according to the Ready Reckoner Rate. The BMC had switched to the new capital value-based system that calculates property tax basedon theuseof property,construction, type and age from the former rateable value system, basedon the property's rent.