Will property tax hike in Pune?

Property tax is a tax levied by the Government or the local governing body over a property which the owner of the property is bound to pay. Property tax is the main source of income for any governing authority of a state. All the property in a state is subjected to pay tax except foreign missionary and central government buildings. The Pune municipal corporation is responsible for collection of property tax in Pune city. The PMC handles all the billing and collection of taxes on residential, commercial and any other type of private properties.

Who is liable to property tax?

Property tax is levied on all privately owned immovable properties like buildings, lands and other properties. PMC is permissible to charge all the buildings within its city limits with property tax. It is collected annually usually and in some cases once in six months. It may also include service taxes like street tax and scavenging tax.

Current scenario of property tax in Pune:

Recent proposals submitted by the administration suggests that the civilians won’t be burdened with extra property taxes and there won’t be a hike in the tax in the coming year. The committee received a proposal that was proposed last week. The proposal was discussed in a special meeting among its members. The civic body according to the proposal is set to make a decision by February 14, 2014.

Even though there’s no hike in the property tax according to the proposal the projected income for the government from the tax from the current rate is 720 crores. The corporation collects the tax from around 7.5 lakh properties all around the city. It’s estimated the properties will increase about 16,000 more and 4,000 more which are under construction at the moment. The corporation is planning to increase the income by property tax around 20 crores a year. Officials report that the civic body has suggested 18% hike in tax which was reduced by the officials to 8%.