All I know, of course, is what I read in the papers, in this case the excellent Aussie journal Progress (which has no on-line presence afaik).
Bundi seems to be a pleasant and well-touristed town in contrast to the general squalor of India, and yes, it has a land tax. Or more precisely, a site rent, based on the area of land and distance from town center. Progress’s Mr. Ed says that this amounts to 1000 Rs/year, 2% of the typical salary, and is sufficient to provide good local services. I for one would be very happy to earn 50 times my real estate tax, an amount which the local governments to which I am subject find entirely inadequate to meet their needs, or at least their desires.
I’d like to verify the Bundi information with some other source, but I can’t find an accessible link in English with any information about Bundi’s tax system. There seems to be some information in Hindi.