The proposed Tamil Nadu State Property Tax Board will complement functions of urban local bodies (ULBs) and will not be in conflict with the ULBs, according to a senior official.

Explaining the rationale behind the introduction of a Bill on the Property Tax Board, the official says the Board’s role will be essentially advisory in nature. The decision to form the Board has been taken following the 13th Finance Commission’s recommendation.

As an advisory body, the Board will have several functions. For example, it will make a comparative analysis of property tax rates across the ULBs, the official explains.

Asked whether other States have established such bodies, the official replies that the concept is only gaining currency. He points to the presence of a board in Andhra Pradesh.

On Monday, Local Administration Minister K.P. Munusamy tabled the Bill in the Assembly.

To be headed by an officer not below the rank of Secretary to government, the Board will include Commissioner of Municipal Administration, Commissioner of Chennai Corporation and Director of Town Panchayats. The government will nominate three specialists in fields such as valuation of properties and taxation.

The Board will review property tax assessment system; suggest suitable basis for valuation of properties; recommend modalities for periodic revision of property tax and make recommendations on the valuation of properties located in urban areas of the State and the principles to govern the modifications of such valuation.

According to the Bill’s statement of objects and reasons, the constitution of a State-level Property Tax Board is one of the pre-conditions to access the performance grant recommended by the Finance Commission for the local bodies. The Board would provide assistance and technical guidance to the ULBs in the State for proper assessment and revision of property tax.

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