Tamil Nadu hikes property tax, Chennai’s core areas to pay 50% more – Times of India

Chennai News

CHENNAI: The Tamil Nadu government has increased property tax for all local bodies in the state with residents of Chennai’s core areas set to pay at least 50% more.
According to the notification by the municipal administration and water supply department, houses in core city areas with a built up area of less than 600 sqft will see a 50% rise in property tax, while the increase will be 25% in areas added in 2011 and in other corporations across the state. The changes are effective from April 1.
In Chennai’s core areas, houses of 600-1200 square feet will see a tax rise by 75%, while houses between 1,201-1,800 sqft will see a 100% rise. Houses which are more than 1,801 sqft will see a 150% increase.
For Chennai’s added areas and for other corporations, houses ranging between 600 and 1200sqft will see a 50% rise, 1,201 to 1,800 sqft houses will see a 75% rise and houses of more than 1,801 sqft will see a 100% rise.
Commercial buildings and industries in core Chennai areas will see 150% increase in tax, while education institutions will see a 100% rise. In added areas and other corporations, the increase will be 100% and 75% respectively.
The government said the tax hike had been done to comply with the Centre’s norms and seek grants for the state. Besides, there had been a drastic decline in revenue for the civic bodies and an increase in their expenditure.Most people have houses of less than 1,200sqft feet and this hike won’t affect them by much, an official statement said.
A 600 sqft house pays a minimum of Rs 810, which will now be Rs1,215. However, in Mumbai, the tax is Rs 2,157, in Bengaluru it is Rs 3,464, and in Kolkata it is Rs 3,510.
Similarly, the highest tax a 600 sq house in Chennai may pay after revision is Rs 4860 however in Bengaluru it is Rs 8660, Kolkata Rs 15,984 and in Pune, it is Rs 17,112 and in Mumbai it is Rs 84,583.
The Chennai Corporation saw a general revision of property tax in 1998 while the added areas and surrounding municipalities saw a revision in 2008.
While a GO was issued in 2013 for a property tax revision, it was stopped in 2019 and a committee was formed to provide recommendations for general revision.
The committee looked into the market rates, inflation, gross state domestic product (GSDP) and cost inflation rate. It found that the wholesale price index had grown by 2.98 times from 1998 to 2022, while it grew by 1.79 times from 2008 to 2022.
The State’s GSDP also grew by 5.2 times, from Rs 4,17,272 crores from 2008–09 to Rs 21, 79,655 crores in 2022.
While the growth parameters are on a rise, the property tax has remained the same, the notification said. The expenditures for the civic body too had risen while the own source of revenues for local bodies were low, putting the municipal finances in strain.

Source: https://timesofindia.indiatimes.com/city/chennai/tn-hikes-property-tax-citys-core-areas-to-pay-50-more/articleshow/90600597.cms