With the civic administration increasing the property tax that came into effect since April 1, property tax is going to cost citizens very dearly as the tax rate for residential properties has gone up five times and that of non-residential properties by four times.
For the first time ever, owners of vacant lands also have to pay property tax. All the 59,000 properties that were found in the survey – new properties, extended structures in properties and re-construction of old properties –will come under the new tax net. In addition, parking space, residential and non-residential swimming pools, open to sky properties are also taxable.
For reinforced cement concrete (RCC) residential structures, the tax of 50 paise per square feet per month has been increased to Rs 2. For gaothan areas, the tax at 40 paise has been raised to Rs 1.60. For properties made with stone, mud, brick or tiles, the tax has been raised from 40 paise to Rs 1.60 in the city and from 30 paise to Rs 1.20 in gaothan areas.
For tin shed/fibre/wood properties, the increase in tax is from 20 paise to Rs 1.10 in the city, while for gaothan area it has been raised from 20 paise to Re 1.
Non-residential RCC structures will now be taxed at Rs 7.20 as against Rs. 1.20 which was the previous tax rate. For gaothan non-residential RCC properties, the tax has been increased from Rs 1-1.20 to Rs 4.80.
For non-residential stone/mud/brick/tiles properties, the tax stands at Rs 4.80 as against 75 paise. In gaothan areas, it has been raised from 60 paise to Rs 3.60. For non-residential properties made built with tin shed, fibre or wood, the tax was 45 paise. It has now been increased to Rs 3 in the city and Rs. 2.50 in the gaothan areas.
If the tax per year for a 500sq-ft residential property was Rs 1647, the tax now stands at Rs 6,500. While the tax for a non-residential property per year was Rs 3,952, it now stands at Rs 23,716. Owners of 500sq-ft vacant plots will have to shell out Rs 1,376 as against Rs 98 per year.
Mobile towers will have to pay at least Rs 15,000 as property tax per month. Cinema halls and theatres will have to pay taxes as per seating capacity and profit. The rate as per seating capacity and profit will be compared to the built-up area and the one that is maximum will be levied as property tax. Service charges will also be levied on central government offices.
“Property tax will now be levied on every vacant plot. If on a plot of 1,000sq-ft, there is construction on only 500sq-ft, tax will be imposed even on the remaining 500sq-ft where there is no construction, as per the rate of the land,” informed an NMC official.
He added the tax was formulated as per Maharashtra Municipal Corporations Act section 127 (a) which mentions the provisions for deciding property tax and that as per section 2 (49) which defines property as construction and vacant land in NMC limits. “Existing tax payers do not come under the current tax method,” said the officer.