The Nashik Municipal Corporation town planning department collaborates to scrutinize property tax compliance for buildings with Building Completion Certificates. This effort aims to integrate BCC-holding properties into the tax framework, as many fail to apply for property tax. About 30,000 such properties, with a potential for Rs 15 crore in annual revenue, have been identified. Last fiscal year's target was Rs 185 crore; now it is Rs 210 crore for fiscal year 2023–24. Current collections stand at Rs 115 crore, with Rs 95 crore needed to meet the current fiscal year's target.
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In a dynamic collaboration, the Nashik Municipal Corporation (NMC) and the town planning department are teaming up to conduct thorough assessments of property tax applications for buildings holding a Building Completion Certificate (BCC). It has been noted that several new properties, upon securing BCCs, are falling short of fulfilling their property tax obligations. This collaborative effort aims to ensure that properties equipped with BCCs are seamlessly integrated into the NMC's property tax framework.
The imposition of property tax becomes mandatory for newly constructed projects once they attain a BCC. Interestingly, a notable tally of nearly 30,000 properties have procured BCCs over recent years, yet they have refrained from initiating property tax evaluations. While the present number of properties adhering to property tax regulations stands at around 5.20 lakh, this figure is projected to ascend to approximately 5.50 lakh in the imminent future. The primary objective of identifying these untaxed properties is to augment the civic body's revenue by an estimated additional Rs 15 crore on an annual basis.
In the prior fiscal year, the civic body had initially earmarked a property tax collection target of Rs 150 crore, a benchmark that was subsequently augmented to Rs 185 crore as per directives from the 15th Finance Commission. Notably, for the ongoing fiscal year 2023–24, an even more ambitious property tax collection target of Rs 210 crore has been set in motion. As of now, the NMC has already accomplished a property tax collection of Rs 115 crore; however, an incremental sum of Rs 95 crore remains essential to achieve the set target for the current fiscal year.
The Building Development Department of NMC issues a building completion certificate, confirming a new building's adherence to safety norms and regulations under the Buildings Act. Local authorities inspect the completed project based on the original plan and grant the certificate upon satisfactory evaluation. Moreover, this certificate is essential for obtaining water and electricity connections for the building.
In a move towards enhanced revenue and streamlined taxation, the NMC's initiative to include buildings with BCCs under the tax net is a significant step. This step not only ensures adherence to tax obligations but also contributes to the civic body's financial growth and development endeavours.
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