The BMC has collected over Rs. 4,903 crores in property tax revenue as of March 28. The updated goal for collecting property taxes in the years 2022–2023 was Rs. 4,800 crores. The assessor and collection department anticipates that more money will be contributed to BMC's coffers with only four days remaining in the current fiscal year.
The second greatest source of revenue for the BMC is property tax, which makes up 24% of total revenues. The BMC
collected Rs 5,792 crores the previous year, compared to an expectation of Rs 5,400 crores. The BMC has a target of Rs 7,000 crores for 2022–2023. A loss of Rs 462 crores was incurred as a result of the Maha Vikas Aghadi (MVA) government's decision to exclude residential properties under 500 square feet from property tax in January 2022.
The property tax exemption was retained by the state's current Eknath Shinde administration in August 2022, which further contributed to a revenue shortfall of Rs 1,080 crore for the current fiscal year. In 2009, the BMC decided to change the tax calculation algorithm and base its calculations on the property's capital value. The decision to revalue the property tax bills by incorporating the unpaid amount from the previous two years, however, marked the implementation of the new rule in 2012.
The verdict was contested in the Bombay High Court (HC), which ruled that capital value should be determined based on the actual building that has occurred on that property and that tax cannot be assessed retroactively. The Supreme Court heard more arguments regarding this decision and ultimately upheld the ruling of the HC. In December 2022, the BMC submitted a review petition to the Apex court about the matter. If the judgement had gone in BMC's favour, the revenue would have increased. According to a civic official, the BMC has since lowered the objective to Rs. 4800 crores in the middle of the year.
The BMC has given personnel from the assessor and collection department a deadline to find the major defaulters and persuade them to settle their debts on time. "We were able to reach the amended target thanks to several efforts and the dedication of our staff. We are optimistic that by the deadline of March 31, we will recover the true aim of Rs. 6,000 crores "a senior member of the community remarked.