Mumbai Municipal Corporation to switch to value-based property tax system
09 Oct 2010
The Mumbai municipal corporation will switch to a value-based system for assessing property tax. The Brihanmumbai Municipal Corporation (BMC) on Friday unveiled draft rules for a capital value-based property tax system.
The BMC might also consider proposals for using residential property for commercial purposes, if house owners are ready to pay assessment taxes as per commercial value.
"Many houses are being used for commercial purposes without the BMC's knowledge, and if these establishments come forward to pay taxes according to the commercial value, then the BMC will consider their request to allow them a licence," municipal commissioner Swadhin Kshatriya said.
Kshatriya said the BMC has already started the process of measuring properties in the city. The properties will be assessed according to the draft rules released by the BMC.
BMC will also give weightage points to these properties, depending on the age, location, use, and type of construction of the property, under the new system.
These along with the floor area of the property will decide the tax to be paid for the property.
