Section 140A in The Mumbai Municipal Corporation Act, 1888
140A. [ Property taxes to be levied on capital value and the rate thereof. [Section 140A inserted by Maharashtra 11 of 2009, Section 5, dated 13-4-2009 (w.e.f. 1-4-2010).]
- [(1)] Notwithstanding anything contained in section 140 or any other provisions of this Act, the Corporation may pass a resolution to adopt levy of property tax on buildings and lands in Brihan Mumbai 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 128:Provided that, for the period of five years from the date on and from 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:[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:] [This proviso was inserted by Maharashtra 11 of 2011, Section 3(1)(a), (w.e.f. 10-3-2011).]Provided [also] [This word was substituted for the words 'further' by Maharashtra 11 of 2011, Section 3(1)(b), (i.v.e.f. 10-3-2011).] that, the property tax levied on the basis of capital value of any building or land on revision made under sub-section (1C) of section 154 shall not in any case exceed 40 per centum of the amount of the property tax payable in the year immediately preceding the year of 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 section 140A, the amount of property tax leviable in respect of a residential building or residential tenement, having carpet area of 46.45 sq. meter (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.[Provided also that, for the Financial Year 2019-20, the provisions of the preceding proviso shall apply as if the general tax leviable under clause (c) of sub-section (1) of section 140 do not form part of the property tax leviable under that section.] [Added by Maharashtra Act No. 24 of 2019, dated 23.7.2019.](2)[ Notwithstanding anything contained in sub-section (4) of section 139A or any other provisions of this Act or Resolution, if any, passed by the Corporation for adopting the levy of property tax 'on the basis of capital value but subject to the provisions of section 154A, buildings and lands in respect of which the process of fixing capital value is in progress on the 26th August 2010, being the date of coming into force of section 3 of the Maharashtra Municipal Corporations and Municipal Councils (Third Amendment) Act, 2010, until it is so fixed; the tax leviable and payable in respect of such buildings and lands shall provisionally be equal to the amount of tax leviable and payable in the preceding year, that is to say, for the year commencing on the first day of April 2009 and ending on the thirty-first day of March 2010 and such provisional tax shall be leviable and payable for each of the years [2010-2011, 2011-2012 and 2012-2013] [Sub-section (2) was substituted by Maharashtra 11 of 2011, Section 3(2), (w.e.f. 10-3-2011).] according to the provisional bills which may be issued separately for each such year; so, however, that on fixation of capital value of the respective buildings and lands, final bill of assessment of property taxes on the basis of capital value may then be issued for each such year as aforesaid. After such final assessment, if it is found that the assessee has paid excess amount, such excess shall, notwithstanding anything contained in section 179, be refunded within three months from the date of issuing the final bill, alongwith interest from such date as provided in the first proviso to sub-section (5) of section 217, or after obtaining the consent of the assessee, shall be adjusted towards payment of property tax die, if any, for the subsequent years; and if the amount of taxes on final assessment is more than the amount of tax already paid by the assessee, the difference shall be recovered from the assessee.](2A)[ Notwithstanding anything contained in sub-sections (1) or (2) or any other provisions of this Act, the tax on buildings and lands, which are liable to be assessed for the first time on or after the 1st April 2010, shall provisionally be equal to the amount of tax, as if such buildings and lands are liable to be assessed in the year 2009-2010; and on ascertainment of the capital value of such buildings and lands, the corporation may issue a final bill in respect of the years for which they are liable to be assessed, on the basis of capital value thereof and accordingly it shall be the duty of the owner and occupier of such buildings and lands to pay such tax within the period specified in the final bill issued as aforesaid.] [Sub-section (2A) was inserted by Maharashtra 6 of 2012, Section 3(b) (w.e.f. 12-3-2012).](3)[ Notwithstanding anything contained in section 163 or 217 or any other provisions of this Act and having regard to the fact that the property tax bill has been issued in accordance with the provisions of sub-section (2), not being a final bill, such bill shall not be questioned before any forum; and no complaint or appeal shall lie against such bill merely on the ground that capital value in respect of the property which is the subject matter of the bill is not yet fixed, or that the amount of tax leviable and payable at the rate of the property tax determined by the Corporation is not yet finally ascertained, or on any other ground whatever.] [Sub-section (3) was added by Maharashtra 27 of 2010, Section 3 (w.e.f. 26-8-2010).]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.]
