Pimpri Chinchwad Municipal Corporation (PCMC) proposes a 4% increase in Property Tax and a 5% in Transfer Notice Fee for for the year 2012-13!
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Ravi Karandeekar
Nov 26, 2011, 9:55:03 PM11/26/11
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The Pimpri Chinchwad Municipal Corporation (PCMC) has proposed a 4% increase in property tax for properties with a rateable value of Re 1 to Rs 30,000 for the year 2012-13. The transfer notice fee is also proposed to be increased from 1% of rateable value to 5%. The rates for other taxes will remain the same as 2011-12 for the next fiscal.
A proposal for increasing the property tax by pushing up the general tax (which is part of the property tax) by 4% will come up for approval at the standing committee meeting to be held on November 29.
The civic body, as per section 99 of the Bombay Provincial Municipal Corporation (BPMC) Act 1949, decides the rates of taxes and collects them. It also collects taxes of the state government, such as education tax, employment guarantee tax and floorage tax at the rates fixed by the state government.
The proposal says it was necessary to increase income from taxes and other sources considering the cost escalation in developmental projects and expenditure on providing civic amenities.
The existing general tax for properties with rateable value of Re 1 to Rs 12,000 is 13%, which has been proposed to be increased to 17% for 2012-13. The general tax for properties with rateable value of Rs 12,001 to Rs 30,000 is proposed to be increased to 20% for 2012-13, from the existing 16%. No increase has been proposed in the general tax for properties with rateable value above Rs 30,001 and will remain at 23%.
Ex-armymen and freedom fighters will continue to get 50% concession in the general tax, cleanliness tax, fire tax and municipal educational tax for houses up to 1,500 sq.ft area. Houses up to 1,500 sq.ft area, which are registered in women’s names, will continue to get 10% concession in the general tax, cleanliness tax, fire tax and municipal educational tax for the next fiscal.
No revision has been proposed in cleanliness tax which will remain at 5% of the rateable value of the property. There is no proposed increase in fire tax, road tax and special cleanliness tax from the existing 2% of the rateable value and municipal education tax, sewage facility benefit tax and water benefit tax will also remain 4% of the rateable value. The tree cess charged at 1% of the rateable value has been left untouched.
The property tax department has not proposed any increase in entertainment tax for auditoriums or theatres. Marathi films will continue to be tax free. Theatres with a seating capacity of 500 seats and more will have to pay entertainment tax of Rs 250 per day. The air-conditioned theatres will have to pay Rs 350 per day and auditoriums will have to pay entertainment tax of Rs 100 per show.
The tax proposal says owners of independently registered residential properties who pay their property tax in advance will continue to get 10% concession in general tax that comprises general tax, cleanliness tax, fire tax and municipal educational tax. The owners of non-residential, mixed use, industrial or open plots will continue to get 5% concession in the general tax.
Properties with green building rating will also continue to get the same concessions for 2012-13 as the previous fiscal, according to the proposal. Properties with three star rating will get 5% concession, four star rating properties will get 8% concession and five star rating properties will get 10% concession in general tax.
Shahaji Pawar, assistant commissioner and chief of property tax department, said, “The civic administration has proposed a minor increase in the property tax for 2012-13, which will increase income through property tax by around Rs 5 crore. The department is expected to collect Rs 200 crore in 2011-12, this includes taxes of the civic body and the state government.”
The municipal corporations as per BPMC Act has to get approval for the new tax rates from the civic general body before February 20. However, as the election code of conduct for municipal elections is expected to come into force in December, the administration will have to get the proposal approved befores that.
A proposal for increasing the property tax by pushing up the general tax (which is part of the property tax) by 4% will come up for approval at the standing committee meeting to be held on November 29.
The civic body, as per section 99 of the Bombay Provincial Municipal Corporation (BPMC) Act 1949, decides the rates of taxes and collects them. It also collects taxes of the state government, such as education tax, employment guarantee tax and floorage tax at the rates fixed by the state government.
The proposal says it was necessary to increase income from taxes and other sources considering the cost escalation in developmental projects and expenditure on providing civic amenities.
The existing general tax for properties with rateable value of Re 1 to Rs 12,000 is 13%, which has been proposed to be increased to 17% for 2012-13. The general tax for properties with rateable value of Rs 12,001 to Rs 30,000 is proposed to be increased to 20% for 2012-13, from the existing 16%. No increase has been proposed in the general tax for properties with rateable value above Rs 30,001 and will remain at 23%.
Ex-armymen and freedom fighters will continue to get 50% concession in the general tax, cleanliness tax, fire tax and municipal educational tax for houses up to 1,500 sq.ft area. Houses up to 1,500 sq.ft area, which are registered in women’s names, will continue to get 10% concession in the general tax, cleanliness tax, fire tax and municipal educational tax for the next fiscal.
No revision has been proposed in cleanliness tax which will remain at 5% of the rateable value of the property. There is no proposed increase in fire tax, road tax and special cleanliness tax from the existing 2% of the rateable value and municipal education tax, sewage facility benefit tax and water benefit tax will also remain 4% of the rateable value. The tree cess charged at 1% of the rateable value has been left untouched.
The property tax department has not proposed any increase in entertainment tax for auditoriums or theatres. Marathi films will continue to be tax free. Theatres with a seating capacity of 500 seats and more will have to pay entertainment tax of Rs 250 per day. The air-conditioned theatres will have to pay Rs 350 per day and auditoriums will have to pay entertainment tax of Rs 100 per show.
The tax proposal says owners of independently registered residential properties who pay their property tax in advance will continue to get 10% concession in general tax that comprises general tax, cleanliness tax, fire tax and municipal educational tax. The owners of non-residential, mixed use, industrial or open plots will continue to get 5% concession in the general tax.
Properties with green building rating will also continue to get the same concessions for 2012-13 as the previous fiscal, according to the proposal. Properties with three star rating will get 5% concession, four star rating properties will get 8% concession and five star rating properties will get 10% concession in general tax.
Shahaji Pawar, assistant commissioner and chief of property tax department, said, “The civic administration has proposed a minor increase in the property tax for 2012-13, which will increase income through property tax by around Rs 5 crore. The department is expected to collect Rs 200 crore in 2011-12, this includes taxes of the civic body and the state government.”
The municipal corporations as per BPMC Act has to get approval for the new tax rates from the civic general body before February 20. However, as the election code of conduct for municipal elections is expected to come into force in December, the administration will have to get the proposal approved befores that.
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