PCMC property tax on common amenities draws flak from housing societies

Pune: Residents of several housing societies in Pimpri Chinchwad have raised objections to the civic body’s decision to levy property tax on amenity spaces within residential complexes, arguing that the move imposes an additional financial burden on residents already grappling with rising maintenance costs.

Several societies have recently received property tax bills ranging from Rs 1 lakh to Rs 5 lakh for common amenities such as clubhouses, swimming pools, libraries, society offices and other shared facilities. Residents contend that property tax has traditionally been levied only on individual residential units and that common spaces were never assessed separately.

Housing society representatives said the new demands have come as a surprise, particularly at a time when housing societies are already spending heavily on essentials such as water tankers, sewage treatment plants (STPs) and routine maintenance.

Sandip Yeole, expert director of Horizons at Wakad Cooperative Housing Society, said the 266-flat society received a property tax demand of Rs 3.18 lakh in the society’s name. “This is the first time we have received such a bill. Every flat owner is already paying property tax, so taxing common amenity spaces separately does not seem justified,” he said.

Yeole also pointed out practical difficulties in recovering the amount from residents. “Under cooperative housing society bylaws, annual expenditure beyond a certain limit (Rs 1 lakh) requires approval in a general body meeting. There is also the question of how the tax burden should be distributed among residents, as societies have flats of different sizes. This could lead to disputes among members,” he said.

Sachin Gunale of Sanskriti Cooperative Housing Society in Kaspate Wasti, said the 650-flat complex received a tax bill of Rs 5.45 lakh. “The municipal corporation has levied tax on facilities such as the swimming pool, society office and library. Our society was completed in 2011 and this is the first time we have received such a bill,” he said.

Gunale said the society had raised objection when it received a draft assessment notice around six months ago. “We submitted our objections in writing, but they were not heard and the final bill was issued,” he said.

Residents have also argued that the civic body’s existing property tax structure is based on built-up area, which already includes common amenities and shared infrastructure. “If the built-up area is already being taxed, imposing a separate levy on amenity spaces amounts to double taxation,” a resident said.

However, civic officials maintained that the levy is not a new tax. A senior official from the property tax department said amenity spaces have always been taxable under existing rules, but many such properties had remained outside the tax net because they were never assessed.

“Following a recent survey to identify unassessed properties, we have started issuing tax bills to societies where amenity spaces were not previously assessed. This is not a new levy but an effort to bring such properties under taxation as per the rules,” Sachin Pawar, deputy municipal commissioner and head of PCMC’s property tax department, said.

The survey enabled the municipal corporation to identify around 1.54 lakh previously unassessed properties and add them to the tax net. With these additions, the number of taxable properties in the city has increased from about 6.3 lakh to 7.84 lakh, significantly boosting the civic body’s property tax base.

Officials added that under the provisions of the Maharashtra Municipal Corporation Act, the civic body is empowered to recover property tax for up to six previous years if a property is found to have remained unassessed.

Sachin Londhe, president of the Pimpri Chinchwad Cooperative Housing Societies Federation, said housing societies were already reeling under rising expenses on water tankers, STPs, garbage collection and waste management, and the fresh tax burden on amenity spaces was unjustified.

“Residents are paying for basic services that the civic body is unable to provide adequately. Imposing property tax on common amenities will only add to their financial strain,” Londhe said.

Referring to the BJP city president’s demand to scrap the 0.5% charge on property transfers, he urged corporators to show the same urgency on the amenity tax issue.

“If elected representatives can oppose the property transfer charge, they should also press for withdrawal of the tax on amenity spaces with same conviction. Residents should not be made to pay more for facilities they already maintain at their own cost,” he said.