Owners of commercial buildings on as many as 25 roads across the city are likely to pay more property tax. This looks imminent as Chennai Corporation is considering applying the highest basic rate of the levy in the respective locality to these roads too.
For instance, commercial buildings in Anna Nagar West are now assessed at the rate of Rs.4.50 per sq ft. If the proposal comes into force, the rate of levy would be Rs.6 per sq ft – the highest basic rate in the Anna Nagar area. The levy is as per the highest basic rate for commercial property owners in Anna Nagar East.
Likewise, on Kutcheri Road the levy is calculated at the rate of Rs.3.60 per sq ft, whereas on Luz Church Road, not far away, the rate is Rs.6 per sq ft.
Apart from Kutcheri Road, various roads where property tax on commercial buildings would increase include Arya Gowda Road in West Mambalam; Warren Road in Mylapore; Taramani Link Road in Velachery; and Shanthi Colony Road in Anna Nagar.
There would, however, be no change in the property tax for residential buildings on the 25 roads.
“The base rates had been fixed in the 1990s.
At that time the future commercial development of these areas was not taken into consideration. Over the past five years the commercial development has been unprecedented in these localities,” the official said.
“This proposal is subject to approval of the Corporation Council and could be implemented by this month if cleared,” the official said.