Property tax is important source of revenue of this corporation. Out of the total income of the corporation 44% comes from property tax. For the year 2001-02 demand for recovery was Rs. 111.93 crores (previous outstanding and current demand) out of which Rs. 74.58 crores were recovered. For the current year (2002-03) the total demand is Rs.76.42 crores and previous outstanding is Rs.37.91 crores therefore total demand is Rs.114.33 crores. Out of which till date Rs.19.86 crores are already recovered. Municipal Property Taxes are levied as per provisions of section 127 read with section 129 of the BPMC Act, 1949, at certain percentage on the rateable value (annual letting value) of the property. For the sake of assessment NMMC area is dived into following categories.

1) CIDCO Plots;
2) 6 CIDCO Nodes
3) 46 Villages;
4) G.E.S. and
5) MIDC area.

As per the above provision rateable value of the property is fixed on the basis of reasonably expected rent. NMMC has decided letting rates (rent rates) per square meter per month for assessing properties in different nodes. While fixing the said rates, also location of property (whether on main road, internal road, etc.), type of construction, user of property, is considered. Letting rates of village properties are fixed on lower side as compared to the rates for properties in CIDCO developed nodes. All the assessment work of the properties is computerised and there is no discretion at any level to reduce the rateable value. Built up area of the property is taken as there will not be any discretion to staff for taking less area as a result of which equity is maintained. Current rate of taxes for residential properties is 29% of rateable value and for nonresidential properties (commercial) is 41% of rateable value. These rates are lower as compared to other nearby corporations.

For the convenience of the tax payers NMMC has provided following facilities :
1) Payment of property tax can be made by cash /cheque/D.D., at any nearest ward office irrespective of where the property is situated.
2) NMMC has designated 6 banks where property taxes are accepted.
3) Earlier one single bill was served on the whole society/ commercial complex buildings. In such cases it was difficult to recover taxes in respect of shops / flats which were closed. To overcome this difficulty, separate unit-wise bills are served.
4) If tax for next 6 months is paid in advance discount is allowed. Also defaulters are charged "Administrative Expenses" @ 2% p.m. for first 12 months and 3% p.m. thereafter. Any property holder can calculate his property tax as per the letting rate schedule published herewith.