The Brihanmumbai Municipal Corporation (BMC) today announced that personalised property tax bills will be issued to the people who own flats in those buildings that will get Occupation Certificates (OCs) from this month.
The civic body also said that under the new property tax system, those who pay the tax promptly, will get 'early bird' discount.
"Those who own flats in the buildings whose OCs will be issued from this month, will get individual property tax bills. But property tax of the unsold flats and common areas will be paid by the builder," a senior BMC official said.
At present, the civic body issues common property tax bill to a housing society, which then collects the tax dues from the flat owners and pays the amount to the civic body.
"The main problem with the current system is that when a member or members fail to pay the property tax, then all the members are penalised for that. Now, in the personalised property tax billing system, this will stop," the official added.
A few years back, the BMC had allowed those flat owners to pay the bills individually, who had opted for it. Such flat owners need to take an NOC from their housing society and file an application with the civic body, he said.
A statement issued by the BMC said that currently owners of 28 lakh flats/galas located across 2.75 lakh buildings in the city pay property tax.
Of these 28 lakh flat owners, 1.42 lakh property holders are paying property bills individually.
Property expert advocate Dharmin Sampat lauded the BMC for the move, saying that it will provide immense help to those who pay the tax promptly.
Sampat, who is honorary secretary of Co-operative Societies Residents, Users and Welfare Association, said, "Innovative scheme like early bird payment shall attract tax payers to make prompt payments."
A developer and former president of National Real Estate Development Council (NAREDCO), Sunil Mantri, said, "Collecting property tax individually is a win-win situation for everyone-- be it a developer, the BMC or a flat owner."
"Now, this system will ensure the faster payment of the taxes which ultimately generates higher revenue for the civic body. Besides, it will give mental and personal satisfaction to the property owner," he said.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)