Times of India 09.03.2011
Property tax board to hear disputes, check for evasion
evasion and to reduce the litigations filed against individual tax
levy, the state government has decided to set up an independent property
tax board to settle disputes and suggest corrective reforms.
A
proposal to set up the Maharashtra Municipal Tax Board is expected to
be put up before the state cabinet on Wednesday. Officials said the
objective was to improve the property tax collection system, and suggest
ways to introduce reforms in the tax computation and assessment system.
The setting up of the board is a mandatory condition set by
the 13{+t}{+h} Finance Commission for urban local bodies that apply for
central grants.
Officials said the board will headed by a
chairman, who will be an officer of the rank of a retired high court
judge, a former chief secretary or a secretary with the central
government.
The board could comprise a maximum five members, a
source said. It will have powers to hear disputes regarding property tax
levied by municipalities, which will be duty-bound to furnish details
on properties and assessments carried out during the fiscal.
The state administration hopes there will be uniformity and transparency
in assessment across urban local bodies using the board’s services.
Disputes over property tax levied on individual properties could also
be submitted before the board. The board will also be empowered to
notify an urban local body that is found lacking in performance.
Officials said after cabinet approval, legislation will be introduced in
the state assembly. The government plans to operationalize the reform
in the next fiscal.
The cabinet is also expected to discuss a
proposal for extension of time to implement the switchover from the
rateable value model of computing property tax to the capital value
model.
It has been necessitated as the Brihanmumbai Municipal
Corporation (BMC) is unlikely to effect the switchover by the March 31
deadline. The government may permit the corporation to continue levying
provisional bills till then.
