Chennai

Property tax for hotels restructured

Chennai Corporation Council Meeting chaired by Mayor M.Subramanian at Rippon Building on Friday. Photo : M. Vedhan

Chennai Corporation Council Meeting chaired by Mayor M.Subramanian at Rippon Building on Friday. Photo : M. Vedhan   | Photo Credit: M_VEDHAN

The Chennai Corporation has restructured the property tax slab for special buildings such as hotels and lodges and decided to arrive at the levy based on the January 2009 room rents. A resolution was adopted by its Council on Friday.

The resolution said that this was necessitated as hotels and lodges had increased their tariff over the past few years.

The revised rates would be applied from September this year. There are around 1,000 such special buildings in the city.

Sources in the civic body said it was a measure to augment revenue. A couple of months ago, the Corporation had restructured the property tax slab for marriage halls and it was based on the rentals collected for 50 weddings in a year.

These two steps alone would bring in an additional Rs.10 crore to the civic body.

The reclassification of mansions, ladies hostels and serviced apartments for the purpose of the levy sometime ago resulted in additional revenue of around Rs.10 crore. The reassessment of buildings with cellphone towers brought in another Rs.4 crore.

The Council adopted a total of 69 resolutions including approval of award of contract for the construction of stormwater drains and strengthening of canals under the Jawaharlal Nehru Urban Renewal Mission scheme in the Kolathur water catchment area for Rs.22.53 crore, at North Buckingham Canal Rs.16.21 crore and Velachery water catchment area Rs. 41.82 crore.

Other resolutions include approval of tender for renovating Victoria Public Hall at a cost of Rs.3.06 crore and award of contract for the construction of a bridge connecting Rajiv Gandhi Salai and Indira Nagar at a cost of Rs.3.58 crore. It also approved leasing of buildings for ration shops.

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Printable version | Jul 13, 2020 4:05:08 AM | https://www.thehindu.com/news/cities/chennai/Property-tax-for-hotels-restructured/article16817238.ece

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