In assessing the property tax is the Corporation right in taking into account the plinth area or carpet area? This question has come to the fore following a question posed under the Right to Information Act to the Corporation.
A petitioner has asked the Corporation 11 questions related to property tax, including ‘Does the car park area in stilt floor attract property tax’, ‘Is carpet area excluding balcony used or plinth area’, ‘When application for assessment of property tax is lodged after expiry of building license, and ‘How property tax is calculated for buildings’.
In response to the questions, the Corporation’s Assistant Commissioner, Revenue, M. Sundararajan has said that the Corporation calculates property tax by completely following the Coimbatore City Municipal Corporation Act, 1981, by taking into account the type and utility of the building, age of the building, the car parking on the stilt floor is also taken into account in calculating the property tax, the plinth area (outer to outer plinth area) including the balcony is also factored in arriving at the property tax and the entire building after the expiry of license is considered unauthorised and fine and property tax are levied.
But his response is being disputed.
Sources say that the very Sections – 122 and 123 of the Coimbatore City Municipal Corporation Act – that Mr. Sundararajan has cited clearly say that only the carpet area and not plinth area has to be taken into account while calculating the property tax.
Clause 3 (i) (a) of Section 123 says, “The basic property tax for every building shall relate to the carpet area of the building and its usage: Provided that the carpet area of any building shall not include the open verandah, open court-yard or any other open space which is not enclosed.”
Citing this they complain that the Corporation should not consider the plinth area but carpet area.
Sources in the Corporation say that it has been the practise in the civic body to calculate the plinth area and it is not against the rules.