VMC Property Tax: How To Calculate and How To Pay Property Tax in Vadodara?

Vadodara Municipal Corporation (VMC) is responsible for developing and maintaining Vadodara’s civic infrastructure and governs the city’s administration. It receives revenue for developing and maintaining such infrastructure through taxes. One such tax is property tax, which you must pay when you own a property in Vadodara. In this blog, we will discuss the following:

• VMC Property Tax
• Procedure to Pay VMC Property Tax
• Calculation of VMC Property Tax
• Penalties if VMC Property Tax is Not Paid
• Exemptions from Paying VMC Property Tax
• How to Check Property Tax Payment History in Vadodara
• Benefits of VMC Property Tax
• FAQs

What is the VMC Property Tax?

The Vadodara Municipal Corporation property tax is a local tax that you must pay to the Vadodara Municipal Corporation for owning a property. They charge the tax for commercial and residential properties in the city to provide civic services. These civic services include road maintenance, street lighting, repairs, drainage services and cleaning.

How to Pay Property Tax to Vadodara Municipal Corporation (VMC)?

Paying the VMC property tax is a simple and hassle-free process. You can follow the below-mentioned online or offline modes to pay the tax as per your suitability:

Online Mode

Follow these steps to pay the VMC property tax online:

1. Visit the official website of Vadodara Municipal Corporation.
2. Scroll down to click on the ‘Citizen Services’ option.
3. Click the ‘Property Tax’ from the various options available on the next page.
4. Provide your 16-digit census number in the box and click the ‘Search’ button.
5. Check the details of the property tax, such as the owner's information and the property tax dues. 
6. Click the ‘Pay’ option to make the payment using your suitable mode.
7. Once you paid the property tax, you can verify the transaction by visiting the ‘Owner Details’ tab.
8. After paying the tax amount, you can opt for the VMC property tax receipt download for future reference.

Offline Mode

Follow these steps to pay the VMC property tax offline:

1. Visit the Vadodara Municipal Corporation office.
2. Request the official to provide you with the property tax details and amount.
3. Submit the required documents and pay the tax amount.
4. Get the acknowledgement slip from the official for future reference.

How to Calculate Vadodara Municipal Corporation House Tax?

You can easily complete the VMC property tax calculation using the following formula:

VMC Property Tax = R x M x A

Where, 

• R refers to the applicable annual tax rate. For example, the tax rate for residential properties is Rs. 16 per sq. metre per annum and Rs. 30 per sq. metre per annum for non-residential properties.
• M refers to the product of multiple variables you require to calculate the property tax. They are:
• M = Age Factor x Location Factor x Usage Factor x Occupancy Year
• The age factor depends on the property’s year-wise construction duration.
• Location factor depends on the location aspect that helps during the tax calculation process.
• The usage factor depends on whether you are using the property for commercial or residential purposes.
• The occupancy factor depends on whether you are using the property for rent or self-occupancy.
• A refers to the total taxable area of your Vadodara property.

In addition, according to Vadodara Tax measurement rules, your total property area includes the whole property, excluding any external or internal walls.

Penalties Under Vadodara Municipal Corporation (VMC)

Paying your VMC tax on time is essential to avoid penalties. However, if you miss paying the property taxes on the due date, you will have to pay the penalty amount to the Corporation. The is subject to 18% interest on the unpaid amount for property tax. 

In addition, you will also have to pay a notice fee of 0.50% and an Education Cess of 25% to the Vadodara Municipal Corporation for the default payment. Hence, you must ensure to pay the property tax within the due date as the penalty is an added payment to the original tax amount that you must pay to the Corporation.

Exemptions Under Property Tax Assessment

The Vadodara Municipal Corporation can offer you VMC tax exemptions in certain scenarios. You can avail the property tax exemption benefit if your property is unoccupied or damaged due to earthquake, fire or any such calamities. Hence, the VMC property tax applies only if your property stays in existence.

Nevertheless, under the existing rules, if you have not used your property for a long time or abandoned it, you cannot avail property tax exemption benefits in Vadodara.

Where Can I Check the History of Property Tax Payments in Vadodara?

Once you have completed the VMC property tax payment, you can check the payment history on the Vadodara Municipal Corporation website. You must input the 16-digit census number into the website and can check the payment history in the information section of the owner’s details. 

How Can I Challenge My VMC Property Tax Assessment?

The steps you can take to challenge your VMC property tax assessment are:

1. Properly check the property tax assessment to be sure all the correct information is considered.
2. Gather proof supporting your claim of property tax assessment being high.
3. File an appeal to Vadodara Municipal Corporation by submitting a written complaint. Make sure to include all relevant information and proof of your complaint.
4. A hearing date will be set by VMC which you need to attend with the evidence and justify your claim during case processing.
5. If the municipal corporation agrees that your property tax has been assessed more than it should be, they might adjust the assessment as well as refund any overpaid amount.

What are the Benefits of Paying Your VMC Property Tax?

The benefits of paying Vadodara Municipal Corporation Property Tax are:

1. Improved Infrastructure

The VMC property tax is a crucial source of revenue for the city’s authority to fund essential civic services. It helps to maintain and develop the city's infrastructural facilities, such as roads, streetlights, public parks, recreation centres, and drainage systems.

2. Enhanced Public Services

Apart from improved infrastructural facilities, the VMC tax also supports public services, like public education and waste management. With the collected tax, the authorities can fund educational institutions for better education. 

3. Transparency and Accountability

The Vadodara Municipal Corporation website provides information about how the authorities are allocating the collected tax revenue. It ensures transparency and accountability, and you can check whether the authorities are using the funds effectively.

4. Increased Property Values

A Well-maintained infrastructure and quality public services in Vadodara will lead to increased property values.  By paying your VMC property tax, you contribute to creating a more desirable and valuable living environment for everyone in the city.

Final Word

The VMC property tax is a direct tax that you must pay to the Vadodara Municipal Corporation for owning a property in the city. The authorities will collect the tax amount and allocate the funds to uplift the city’s overall structure. Hence, you can follow the above-mentioned ways to pay the VMC property amount. You must also note that default payments may lead to penalties, increasing the total amount of your VMC tax. 

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