Maharashtra, gear up to shell out more for property tax, courtesy new cess

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If the Maharashtra state Government has its way, one will have to pay more property tax, on account of a cess that the Government plans to levy on property tax in addition to the existing ones pertaining to trees, education and repairs.
The urban development (UD) department has proposed a 0.5% cess on the general component of property tax. The collection from this cess is to be used to establish the Maharashtra Municipal Property Tax Board (MMPTB) and fund its activities. This proposal is yet to be considered and passed by the chief minister Prithviraj Chavan.

A senior official stated that ‘setting up of the MMPTB was a condition of the 13th Finance Commission for releasing a Rs 1,100-crore grant to the state. The MMPTB will be expected to audit tax assessments by municipalities, recommend action in the event of incorrect valuation, settle property tax disputes and design procedures to improve transparency in valuation.’