The Hindu : Front Page : Govt to take up property tax revision from April 1

Online edition of India's National Newspaper
Sunday, Nov 25, 2007
ePaper

Front Page

Front Page

Govt to take up property tax revision from April 1

T. Ramakrishnan

CHENNAI: The State Government has decided to take up general revision of property tax in all municipal corporations, municipalities and town panchayats from April 1 next year. A Municipal Administration and Water Supply department order said the revision would be as per the statutory provisions of the relevant laws for urban local bodies (ULBs). At present, the State has six municipal corporations, 152 municipalities and 561 town panchayats. Last week, the Government announced that the Tirupur and Erode municipalities would be made municipal corporations from January. The previous revision was carried out in October 1998. Though subsequent revision in all ULBs was due in October 2003, it was not done. In 1998, the hike was 25 per cent of the then prevalent rates for self-occupied houses and 50 per cent for those let out on rent. An official said the revision process could go on till October.

The new rates of property tax might come into effect from October 2008. According to the order, the Commissioner of Municipal Administration (CMA) and the Director of Town Panchayats will issue the guidelines for the revision.

Though the Chennai Corporation, unlike other municipal corporations, comes under the direct control of the Government for administrative purposes, the CMA’s guidelines will hold good for Chennai too. Municipalities also come under the jurisdiction of the CMA. The official said the guidelines would cover taxation and indicate the procedures to be followed. On receipt of the guidelines, the urban local bodies would work out the specifics and their elected councils adopt resolutions before implementing the revised rates. There would be no change in the classification of tax assessees.

Broadly, the rates would cover self-occupied houses and those let out on rent, apart from commercial and industrial categories. The move comes at a time when several development schemes are under various stages of execution. .

Printer friendly page
Send this article to Friends by E-Mail

Front Page