Property tax in other urban local bodies also increases, even as the DMK calls for a protest.

After 20 years Chennais property tax increasesImage for representation
news Tax Wednesday, July 25, 2018 - 12:00

The Tamil Nadu government has given its nod to urban local bodies to take up general revision of property tax with effect from this half-year period i.e, April-September 2018. The increase will not be more than 100% for commercial and rented residential buildings, and not more than 50% for residential buildings.  

The Greater Chennai Corporation, 11 other municipal corporations, 124 municipalities and 528 town panchayats will see a revision in property tax rates. This decision comes after years of inertia over the matter but the DMK has condemned the move, as it would 'hit all people in the state'.

A protest against the move has been announced on Friday.

Last week, a Division Bench of the Madras High Court directed the Municipal Administration and Water Supply Principal Secretary Harmander Singh to take a decision with regard to the proposal submitted by the Chennai Corporation Commissioner D Karthikeyan. He was given two weeks to take a call on revision of property tax and report to the court during the next hearing on August 3.  Accepting the proposal drafted by the Chennai Corporation Commissioner, Commissioner of Municipal Administration and the Director of Town Panchayats, the State government has issued an order allowing the hike in tax rate.

After the revision, the collection in Chennai is expected to increase to Rs 1,160 crore a year. The Chennai Corporation is expected to collect Rs 180 crore every half-year from residential building owners and ₹400 crore from non-residential building owners.

According to The Hindu, 12 lakh property tax assessees will be asked to file property tax returns with details on the extent of the building and the usage of the building. While the impact of this revision will be felt by all assessees, those whose nature changes from residential to commercial property will be most impacted.

Chennai Corporation last revised property tax in 1998, other local bodies in the State revised it in 2008.

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