Special Issues

Part 10

v     Assessment of Property Taxes

Q.1   How the property taxes are worked out by BMC?

Ans. There taxes are worked out on the basis of Rateable Value of the properties determined by the assessment department of BMC.

Q.2    What is ratable value?

Ans. The ratable value is based on fair and reasonable Annual Rent of the property/premises presumably it would earned, deducting 10 percent statutory deduction.

Q.3    Whether the Rateable value can be challenged?

Ans.   Yes, It is experienced that the rateable value determined by the department initial stage (when the first notice is served to the assesses) is always on higher side unless challenged.

Under section 167 of BMC Act 1888, the assessee has to lodge objection for the ratable value, within 15 days in writing with the department, otherwise ratable so decided is treated as final.

It is advisable that the society should lodge objection in time. In spite of objections. If Rateable Value is not changed the society can appeal to the appropriate civic authority failing which it can be challenge in the court of law.

Q.  What is the percentage of taxes in relation to rateable value?

Ans.  Generally the taxes are 75 percent to 80 percent of the rateable value for residential premises. For commercial premises it is double and one half times for industrial premises.

Note:   The Municipal Corporation can charge additional taxes for larger residential premises under “Larger Premises Tax,” in case the carpet area of flat is 125 Sq.Mtrs. or above.

Q.  What is the percentage of taxes in relation to rateable value?

Ans.  Different heads of taxes are as under:

Description	Percentage of taxes related to retable value (w.e.f. 1-4-2000)
1. General Tax	30%
2. Water Tax	Not Included if there is authorizes connection to premises
3. Repair Cass Tax	By separate bill if property is cessed
4. Water benefit tax	12.50%
5. Sewerage benefit tax	7.50%
6. Education Cess Tax	12.00%
7. Tree Tax	0.50%
8. Street Tax	15.00%