Starting January, residents and traders who have failed to get their buildings correctly assessed for property tax will have to cough up huge sums of money to the Chennai Corporation.
Over 20,000 large commercial and residential buildings measuring more than 10,000 sq. ft. will soon receive notices from the Chennai Corporation, asking for property tax payment for 12 previous half-yearly periods.
Every six months, the Chennai Corporation collects more than Rs. 250 crore as property tax from more than 11 lakh owners of residential and commercial properties in the city.
Following a drive to reassess large properties that have constructed additional space recently, more than 20,000 buildings measuring 10,000 sq. ft. have been estimated to have ‘escaped’ correct assessment of property tax.
Most zones in the Corporation have identified large buildings that escaped proper determination of land value. Work in the remaining zones will be completed shortly.
“We will calculate the amount of property tax to be collected for each of the structures. The owners will receive notices under provisions of Section 137-B of the Chennai City Municipal Corporation Act (CCMA). All the owners will be asked to pay property tax for the past six years. The only option for aggrieved residents is to move the court,” said an official.
The number of court cases pertaining to property tax is likely to increase next year. According to Section 137-B of the CCMC Act, the civic body has powers to assess property tax for buildings in case of ‘escape from assessment’.
