Property tax based on capital value by yearend: BMC
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After failing to meet a second, November, deadline, BMC is aiming to issue property tax bills based on capital value before yearend.
This will leave citizens with three months to pay additional property tax for the past three years, since April 2010. Civic officials attributed the delay to glitches in the new system at the ward level.
"We are holding meetings every day regarding this and have been conducting training sessions for officers at the ward level. There was also a change in coding that needed to be introduced. We do not want any mistakes when we compute new bills," said a senior official in the BMC assessment and collection department.
In May, the BMC standing committee had approved the new capital value system, which bases property tax on the ready reckoner rate.
The BMC tax department said the difference between the new and old rateable value system should be paid by citizens by March 31, 2013. It also proposed a penalty if retrospective bills are paid after March 31, 2013, and hopes to regularise the billing system by 2014.
After the bills are issued, citizens will have a window of 21 days to raise objections. Initially, the tax department had set a deadline of September, which was extended to November, and now, to yearend.
The capital value system calculates tax based on use of a property, construction, type and age, while the rateable value system was based on rent a property could command in April 2010.
Owners of residential and commercial buildings that came up post-2010 will have to pay arrears from April 2010. The final amount for old buildings receiving provisional bills will be adjusted to reflect outstanding calculated according to the new system.
The new system increases tax for properties in island city, while residents in suburbs will have to pay less than the present rate.