The long pending amendment to the Bombay Municipal Corporation Act, 1888 was approved by the state assembly and joint select committee. Mumbaikers need not pay property tax for small apartments hereafter. The State Legislative Council passed the bill to calculate property tax on capital value and not on ratable value. This decision was welcomed by residents who own a carpet area of 500 sq ft. These small flat owners in Mumbai need not pay property tax for the first five years. The subsequent five years, there is a cap of 8 percent on yearly increase.