Property Tax is also known as Capital Tax & Real Estate Tax. Property tax is the annual amount paid by a land owner to the local government or the municipal corporation of his / her area. The property includes all tangible real estate property, his house, office building and the property he has rented to others.
In India, the municipal corporation of a particular area assesses and imposes the property tax annually or semi-annually. The tax amount is based on the area, construction, property size, building etc. The collected amount is mainly used for public services like repairing roads, construction schools, buildings, sanitation.
However in most part it is known as "Property Tax" only which levied and collected by the local municipal body based on the area of the flats / shop / garage / bungalow. While the individual flat owner pays the property tax as may be applicable for his / her flat but will contest to pay the propionate tax for common areas. Thus many Cooperative Housing Society / RWA struggle to find the right way to calculate the contribution each member needs to pay towards the common area. Since all member enjoys the benefit of the common area like passages, lift lobby, community hall, security cabin, etc. it is advisable that the society calculate the total Property Tax levied by the local body for use of such area and add equal amount in each members property tax contribution irrespective of their flat / garage / bungalow size.