Mira Bhayandar: In an effort to boost its revenue generation, the Mira Bhayandar Municipal Corporation (MBMC) has finally taken steps to recover additional taxes on commercial properties that have been leased out by the original owners. The tax department has also started issuing notices to owners, asking them to submit copies of the leave-and-license agreements for the commercial properties they have executed with lessees.
However, in a significant setback for the civic administration, local legislator Geeta Jain has raised questions about the implementation process. In her letter to the municipal commissioner, Jain has cited several sections of the Maharashtra Municipal Corporations Act, 1949, which need approval and incorporation before imposing such levies.
Follow due process of law: Jain
"I am not against the steps taken to augment revenue, which is needed for the development of the twin city. However, while doing so, the due process of law needs to be followed, including an official nod from the state government," said Jain. "The implementation is in accordance with the rulebook. In fact, the general body has passed a resolution suggesting a 54% levy, which was later reduced to 20%," said Deputy Civic Chief Sanjay Shinde. The MBMC aimed to increase its projected collection figures by Rs. 10 crore, as hundreds of properties, including industrial units, multiplexes, shopping complexes, and individual shops, could come under the rental tax net. Calling the levy unjustified, Shiv Sena (UBT) leader Jitendra Pathak has warned of launching an agitation against the MBMC if the tax is not rolled back.
As per a resolution passed in 2018 by the general body in accordance with rule 7 in chapter VIII (taxation rules) of the Maharashtra Municipal Corporations Act, 1949, non-residential properties that have been leased out will attract 20% of the annual rent based on the capital value-based tax system or Rs. 10 per square foot of the carpet area (whichever is higher). However, the tax department has failed to implement the resolution for more than five years.
The MBMC faces a daunting task of increasing its property tax revenue receipts by at least 25% to remain eligible for grants provided by the central government for various projects and initiatives under the fifteenth finance commission. The assessed number of properties in the twin city is currently estimated to be around 4,00,607, including 64,618 commercial and 3,35,989 residential units. Notably, the tax department, unaware of the number of commercial properties being used on a rental basis, has sought data from the power service provider and the sub-registrar to help identify self-occupied and rented properties.
