State Act

The Mumbai Municipal Corporation Act.

154. Rateable value 2[or capital value] how to be determined.— (1) In order to fix the rateable value of any building or land assessable to a property-tax, there shall be deducted from the amount of the annual rent for which such land or building might reasonably be expected to let from year to year a sum equal to ten per centum of the said annual rent and the said deduction shall be in lieu of all allowances for repairs or on any other account whatever. 3[(1A) In order to fix the capital value of any building or land assessable to a property tax the Commissioner shall have regard to the value of any building or land as indicated in the Stamp Duty Ready Reckoner for the time being in force as prepared under the Bombay Stamp (Determination of True Market Value of Property) Rules, 1995, framed under the provisions of the 4Bombay Stamp Act, 1958, (Bom. LX of 1958) 5[as a base value] or where the Stamp Duty Ready Reckoner does not indicate value of any properties in any particular area wherein a building or land in respect of which capital value is required to be determined is situate, or in case such Stamp Duty Ready Reckoner does not exist, then the Commissioner may fix the capital value of any building or land 6[taking into consideration the market value of such building or land, as a base value. The Commissioner while fixing the capital value as aforesaid, shall have regard to the following factors, namely:—] (a) the nature and type of the land and structure of the building, (b) area of land or carpet area of building, (c) user category, that is to say, (i) residential, (ii) commercial (shops or the like), (iii) offices, (iv) hotels (upto 4 stars), (v) hotels (more than 4 stars), (vi) banks, (vii) industries and factories, (viii) school and college building or building used for educational purposes, (ix) malls and (x) any other building or land not covered by any of the above categories, (d) age of the building, or (e) such other factors as may be specified by rules made under sub-section (1B). (1B) The Commissioner shall, with the approval of the Standing Committee, frame such rules as respects the details of categories of building or land and the weightage by multiplication to be 7[assigned to various such factors and categories] for the purpose of fixing the capital value under sub-section (1A)]. (1C) The capital value of any building or land fixed under sub-section (1A) shall be revised every five years: Provided that, the Commissioner may, for reasons to be recorded in writing, revise the capital value of any building or land any time during the said period of five years and shall accordingly amend the assessment book in relation to such building or land under section 167.] 1[(1D) (a) Notwithstanding anything contained in sub-section (1C),— (i) due to the spread of COVID-19 pandemic, the capiptal value of any building or land fixed under sub-section (1A) shall not be revised in the year 2020-21 2[, the year 2021-22 and the year 2022-23]; (ii) for the year 2020-21, the property tax bill for any building or land shall be the same as is for the year 2019-20 3[, the year 2021-22 and the year 2022-23]; (iii) the capital value of any building or land fixed under sub-section (1A) shall be revised 4[in the year 2023-24], as if the clause (i) is not applicable for the year 2020-21. 5[(a-1) Notwithstanding anything contained in sub-section (1C),— (i) the capital value of any building or land fixed under sub-section (1A) shall not be revised in the year 2023-24; (ii) for the year 2023-24, the property tax bill for any building or land shall be the same as was for the year 2022-23; (iii) the capital value of any building or land fixed under sub-section (1A) shall be revised in the year 2024-2025, as if clause (i) is not applicable for the year 2023-24.] (b) Subject to the proviso to sub-section (1C), the next revision shall be in the year 2020-21 6[, the year 2021-22 and the year 2022-23], and, thereafter, the revision of capital value of any building or land shall be in accordance with the provisions of sub-section (1C).] (2) The value of any machinery contained or situated in or upon any building or land shall not be included in the rateable value 7[or the capital value, as the case may be,] of such building or land. 8[* * *]