Of the many announcements in the Corporation Budget 2013-14 the one proposing tax on name transfers stands out as a novel tax initiative.
In his Budget, Finance and Taxation Committee Chairperson R. Prabhakaran said there were about four lakh property and vacant land tax assessments in the Coimbatore Corporation limit.
A good number of those saw name transfers every year due to sale of property, execution of wills, transfer of property to legal heirs, etc. After such change of ownership of property, name transfers take place in property tax and vacant land tax assessment books.
A levy of tax on such transactions will yield substantial revenue to the civic body.
The Corporation had calculated that 5 per cent of the four lakh properties in the city had underwent name change.
If the Corporation were to levy anywhere between Rs. 200 and Rs. 2,000 depending on the property value, it would be able to net around Rs. 2 crore a year.
Sources in the civic body said that they were ready with the money to be charged and proposed to submit the same to the Council for its consideration on Monday.
But if indications from the Mayor and Councillors are anything to go by, it may remain yet another announcement. At the Budget discussion meeting on Thursday evening the Mayor said that the Council will decide later on the tax mobilisation initiative.
If the Council fails to pass or defers the issue, it will join the list of proposals that are yet to see the light of the day – the proposal to increase water charges and levy underground drainage user charges.