The Government of Tamil Nadu has announced an increase in property taxes in corporations, municipalities and municipalities in Tamil Nadu.
Record: April 02, 2022 01:39
AM
Chennai,
The 15th Finance Commission, set up by the Central Government, in its report states that from 2022-2023, local bodies are required to declare property tax base rates by 2021-2022, in order to be eligible for the grant, on the basis of the Commission’s recommendation, and state GDP. It also stipulates that the property tax rate must be raised annually in line with production growth.
Accordingly, property tax has been revised in the municipalities and municipalities in Tamil Nadu as follows.
Property taxes are raised by only 25 percent for residential buildings with an area of less than 600 square feet. Property taxes are raised by only 50 percent for residential buildings with an area of 601 to 1,200 square feet. Only 75 percent of property taxes are raised for residential buildings with an area of 1,201 to 1,800 square feet. A 100 percent property tax increase is to be made for residential buildings with an area of more than 1,800 square feet.
100 percent for commercial use
Under the existing property tax, the rate will be raised to 100 per cent for commercial utility buildings and 75 per cent for industrial and educational utility buildings.
Similarly, in Metropolitan Chennai Corporation and 20 other corporations, the property value increase is expected to increase in the financial year 2022-23.
Accordingly, 50 per cent for residential buildings of less than 600 sq.ft. Raise the property tax by 100 per cent for residential buildings with a floor area of 100 per cent and 150 per cent for residential buildings with an area of more than 1,801 sq. Ft. Percentage, property tax is raised 100 percent for residential buildings over 1,801 square feet.
It has been advised to take action to raise property tax by 150 per cent for commercial utility buildings in industrial areas of Chennai, 100 per cent for industrial and educational center buildings, 100 per cent for commercial utility buildings in areas connected with Chennai in 2011 and other corporations, and 75 per cent for industrial and educational institutions.
Resolution in Councils
Furthermore, the area of dwellings has been divided into 4 categories so that the current erosion does not affect the basement population much. Buildings with an area of less than 1,200 square feet make up 62.40 per cent of the main area of the Metropolitan Corporation of Chennai and 88 per cent of the other parts of the Metropolitan Corporation of Chennai, the other 20 corporations, municipalities and municipalities in the state. Therefore, most people living in homes with an area of less than 1,200 square feet will not be greatly affected by this tax increase.
Currently, the property tax in force in corporations, municipalities and boroughs in Tamil Nadu is very low as compared to various cities and towns in India.
Therefore, the government has issued an order to carry out property tax adjustment in respect of municipalities and municipalities. Corporations have been advised to carry out property tax revision after obtaining the resolution of the respective Municipal Councils.
Thus it is said.