Chenniai, Apr 2 : In line with the recommendations of the 15th Central Finance Commission, the Tamil Nadu government has hiked the property tax in all M cipal Corporations, M cipalities and Town Panchayats under the Tamil Nadu District M cipalities Act, 1920. An official release issued last night said a gazette notification was issued in this regard which said that the hike in tax would come into force with immediate effect in M cipality and Town Panchayat limits. However, in Corporations, including Chennai, it would come into effect once the proposals are adopted by the respective councils. The notification said the 15th Finance Commissin has recommended that to qualify for any grants under urban localbodies from 2022-23 onwards, the States will have to appropriately notify floor rates in the year 2021-22 and thereafter show consistent improvement in collection in tandem with the growth rate of the State’s own GSDP. It said the last revision of property tax was carried out in 1998 and 2008 respectively. “Considering the financial need of the urban local bodies to provide civic infrastructure and basic amenities/services to the citizens, the mandatory conditions specified by the 15th Central Finance Commission for availing grants and the entry level conditions for receiving funds under various Central schemes and also thereport of the committee, the government has decided that the general revision of property tax in all M cipalities and Town Panchayats may be taken up immediately”, the notification said. In Greater Chennai Corporation, the property tax was increased by 50% for residential properties in main areas and by 25% for areas that were included in Chennai in 2011 and in other 20 M cipal Corporations. “The government has accepted the recommendation and instructions have been issued to respective M cipal Corporations for taking action through the Corporation Councils,” the release said. As for M cipalities and town panchayats, for residential properties below 600 sqft, the property tax has been increased by 25%, while for those between 601 and 1,200 sqft, it has been increased by 50%, the Gazette notification said. For residential properties betweeen 1,201 sqft to 1,800sqft, the increase was 75% and for those above 1,800 sqf, the hike was 100 per cent. For non-residential properties, the property tax wa hiked by 100% for commercial establishments and 75% for industries and private schools and colleges including, self-financing courses/departments in aided institutions. “Vacant land tax has been increased by 100% in all urban local bodies,” it said. GV 1234
