State Act

The Maharashtra Municipal Corporations Act

129. 5[Property taxes leviable on rateable value, or on capital value, as the case may be, and at what rate].— 6[(1)] 7[The following property taxes shall, subject to the exceptions, limitations and conditions hereinafter provided, be levied on buildings and lands in the City :— (a) a water tax at such percentage of their rateable value 8[or their capital value as the case may be,] as the Corporation shall deem reasonable, for providing a water supply for the City ; 9[(aa) an additional water tax which shall be called “the water benefit tax” at such percentage of their rateable value 10[or their capital value as the case may be,] as the Corporation may consider necessary for meeting the whole or part of the expenditure incurred or to be incurred on capital works for making and improving the facilities of water supply ;] 1[(b) conservancy tax or the sewerage tax at such percentage of their rateable value 2[or their capital value as the case may be,] as the Corporation may consider necessary for the collection, removal and disposal of human waste and other wastes ; (bb) an additional conservancy or sewerage tax which shall be called “the sewerage benefit tax” at such percentage of their rateable value 3[or their capital value as the case may be,] as the Corporation may consider necessary for meeting the whole or a part of the expenditure incurred or to be incurred on capital works for making and improving the facilities for the collection, removal and disposal of human waste and other waste;] (c) a general tax of not less than twelve per cent. of their rateable value 4[or of not less than 0.1 and not more than 1 per centum of their capital value, as the case may be,] which may be levied, if the Corporation so determines 5[* * * * *] 6[together with not less than one-eight and not more than 7[two per centum] of their rateable value 8[or of not less than 0.01 and not more than 0.2 per centum of their capital value, as the case may be,] added to the general tax in order to provide for the expenses necessary for fulfilling the duties of the Corporation imposed or arising by or under clause (5) of section 63 and Chapter XVII] : Provided that the Corporation may, when fixing under section 99 or section 150 the rate at which general tax shall be levied for any official year or part of an official year, determine that the rate leviable in respect of buildings and lands or portions of buildings and lands in which any particular class of trade or business is carried on shall be higher than the rate fixed in respect of other buildings and lands or portions of buildings and lands by amount not exceeding one-half of the rate so fixed. Explanation.— Where any portion of a building or land is liable to a higher rate of the general tax such portion shall be deemed to be a separate property for the purpose of municipal taxation ; 9[(d) the education cess, leviable under section 148A ; (e) the street tax, leviable under section 148C] ; 10[(f) the betterment charges leviable under Chapter XVI]. 11[* * *] 12[(2) Notwithstanding anything contained in any other provisions of this Act, but save as otherwise provided in the proviso and the Explanation to sub-section (1), the Corporation may pass a resolution to adopt levy of property tax on buildings and lands in the city on the basis of capital value of the buildings and lands on and from such date, and at such rates, as the Corporation may determine in accordance with the provisions of section 99 : Provided that, for the period of five years from the date on which such property tax is levied on capital value, the tax shall not exceed,— (i) in respect of building used for residential purposes, two times, and (ii) in respect of building or land used for non-residential purposes, three times, the amount of the property tax leviable in respect thereof in the year immediately preceding such date : 1[Provided further that, where the property taxes levied in respect of any residential or non-residential building or portion thereof were on the basis of annual letting value arrived at considering leave and licence charges, by whatever name called, then for the purposes of the first proviso, it shall be lawful for the Commissioner to ascertain such tax leviable during such immediately preceding year, as if such building or portion thereof were self-occupied and had been so entered in the assessment book :] 2[Provided 3[also] that, the Corporation may determine different rates of property tax for different categories of user of a building or land or a part thereof :] 4[Provided also that] the property tax levied on the basis of capital value of any buildings or lands, on revision made under sub-rule (3) of rule 7A of the TAXATION RULES in Chapter VIII of Schedule ‘D’, shall not in any case exceed 40 per centum of the amount of the property tax payable in the year immediately preceding the year or such revision : Provided also that, for the period of five years commencing from the year of adoption of capital value as the base for levy of property tax under this sub-section, the amount of property tax leviable in respect of a residential building or residential tenement, having carpet area of 46.45 sq. meters (500 sq. feet) or less, shall not exceed the amount of property tax levied and payable in the year immediately preceding the year of such adoption of capital value as the basis. Explanation.— For the purposes of this section, after the Corporation adopts the capital value as the basis of levy of property tax, the property tax in respect of any taxable building shall be revised after every five years and on each such revision, such amount of property tax, shall not in any case exceed the forty per cent. of the amount of the property tax levied and payable in the year immediately preceding the year of the revision.]