Calcutta, April 30: The Bengal government has, after about 25 years, initiated a move to bring about major reforms in assessment of property value and collection of tax in the Calcutta Municipal Corporation area.

The amended rules envisage a fixed formula so that anybody can assess the value of property and pay tax without difficulty. This will also remove any scope for manipulation.

The Kolkata Municipal Corporation (Amendment) Bill, 2005, which was placed in the Assembly in the just-concluded first phase of the budget session, was sent to the select committee for the opinion of the legislators. Government officials held two meetings with members of the committee last week and this week. They explained the provisions of the bill that will be tabled, with changes, if any, in the second phase of the budget session.

The annual value of the property will be calculated by multiplying the base unit area value by the multiplication factor and then multiplying the figure arrived at by the covered area.

The base unit area value will be a uniform rate per sq ft and will depend on the nature of the locality ? posh, suburbs, backward or high-valued. The multiplication factor will depend on the frontage ? the width of roads where the building is located and the age and the use to which the building is put. A committee will fix the base unit area value and the multiplication factor.

The municipal corporation will form a committee, headed by the municipal commissioner, to decide the tax rates, which vary with the area and will be between 6 and 20 per cent of the value of the property.

The corporation will issue a gazette notification after finalising the base unit area value, multiplication factors and the rates of tax, and will publish it in newspapers. The civic board will also maintain an assessment book.

There is also a provision of self-assessment of the property. ?After obtaining the base unit area value, multiplication factor and the rate of tax, anybody can assess the annual valuation of his/her own building and pay the tax. In case of any underpayment or overpayment by any citizen, the amount will be adjusted,?? clarified an official.

The bill says buildings used for IT will enjoy a maximum of 50 per cent tax exemption. The proposed legislation also envisages those occupying buildings being liable to pay the tax if the owners are not found.

Urban development minister Asok Bhattacharya said the move to bring about major changes in the tax-collection system is aimed at avoiding complexity and minimising the scope for excessive use of discretionary power for assessment. ?The new system will bring transparency in property assessment and collection of taxes and undue complexity in the matter of imposing property tax can be avoided,? he said.

Property in the city is assessed and tax collected at present on the basis of the Calcutta Municipal Corporation Act, 1980. Civic officials assess the value of the property and determine the tax to be paid. As there is no fixed formula, the tax solely depends on the evaluating officer and the corporation has to face allegations of overvaluation.