This paper has been written in the context of the clamour for reform in the property tax systems in Indian municipalities. Recent attempts at reform have been based on shifting away from the age-old rental value based system of property taxation. The authors explore the possibility of an alternative capital value based system for a metropolitan city and address the intricacies of a smooth shift-over to the alternative, taking into consideration the pre-reform utility positions of both the property owners and the local government.
