Indian Express 24.08.2010
Oct deadline to collect pending property tax
sharvaripatwa Tags : property tax, Corporation Posted: Mon Aug 23 2010, 01:34 hrs
Mumbai: With the Brihanmumbai Municipal Corporation (BMC) set to implement the new property tax system, the civic body’s assessment and collection department has been given a deadline to clear pending tax settlements.“We have been asked to wrap up maximum outstanding tax cases by October,” said V D Pandere, assessor & collector.The assessment & collection department has over two lakh pending cases on August 2, 2010, and over Rs 5,470 crore has to be collected in property tax. “The maximum amount of money is stuck in court cases,” said a senior official.
The cases stuck in litigation cannot be settled but the BMC can settle cases of complaint against rateable value, complaint against rateable value leave licence, dues from other departmental pending adjustment, property tax disputes, dues against court receiver among others”, said the official.
“To clear pending cases, the ward officials have been given extra powers,” said Pandere.
“The assessor & collector at the ward level has been given the additional power of investigation officer to settle the case if the amount is upto Rs 50 lakh. Also, assistant municipal commissioner of every ward has been given the power to resolve cases up to Rs 1 crore,” said Pandere.
“The power to handle cases, which involve amounts above Rs one crore, has been given to the deputy municipal commissioner”. We will try to clear as many cases as possible since all the possible balance should be cleared, he said.
Meanwhile, as the property tax bills which were supposed to be sent according to the old rateable value system have still not been dispatched. With the BMC staring at possible cash crunch, the settlement of old cases might come as a relief. The proposal to send property tax bills to residents according to the old rateable value system was sent to the Urban Development Department (UD) almost three months ago, but an official nod is still awaited, said a senior official. The yearly property tax collection are down by over 70 per cent this year, compared with collections last year this time”, said an official. The civic body had planned to send property tax bills to residents based on the old system as the shift from the old to new system is expected to take a few months. It had been proposed that the BMC should use the new capital value-based property tax structure to tax property owners. The new system will be based on the actual property value.
