On late Friday, the government of Tamil Nadu has announced a hike in property tax in all Municipal Corporations, Municipalities, and Town Panchayats. Further, the government said that it has taken the decision due to the recommendation of the 15th Finance Commission. And it implements its injunction under the 1920 act.
Relevant councils have yet to ratify the government’s decision. Soon after the validation, the decision to increase in the respective sectors will come into effect in the state. Especially in greater Chennai Corporation, a hike in property tax is allotted for 50% of residential properties in significant areas and 25% for areas that belong to Chennai in 2011 and in other twenty Municipal Corporations.
As per the sources, the government has given credence to the recommendation and instructions which were distributed to specific municipal corporations for proceeding through the corporation councils. There is a hike up to 25% in property tax for residential properties of Municipalities and town Panchayats that are below 600 sq.ft. While for those between 601 and 12,00 sq.ft, it has been increased by 50%.
Whereas, for residential properties between 1,201 sq.ft and 1800 sq.ft, the government has allocated 75% hike in property tax. And for above 1,800 sq.ft, it has risen 100% completely.
On the other hand, the property tax will be hiked by 100% for commercial establishments in the non-residential properties sector. And for private schools, colleges, self-financing courses in aided institutions, and various industries, it has been hiked by 75%. Moreover, vacant land tax in all urban local bodies will also be hiked by 100%, said the government source.