Chennai Municipal Corporation issues Recommendation for Rationalization and General Revision of Property Tax

Aug 07, 2018 | by Avantis RegTech Legal Research Team


Chennai Municipal Corporation vide notification dated August 01,2018 has issued Recommendation for Rationalization and General Revision of Property Tax

The methods being followed for levy of property tax vary between the amalgamated local bodies and erstwhile Chennai Corporation limits and petitions were received from various associations, organizations and public in this regard. To clear the discrepancies a rationalization committee was constituted. The rationalization committee has suggested the following recommendations and it should also be executed.

Recommendation – 1

1) A uniform method should be adopted for the entire Greater Chennai Corporation areas for property tax calculation. The core city calculation method should be taken to calculate property tax for entire Greater Chennai Corporation areas.

 2) The property tax in the limits of erstwhile Chennai Corporation areas would have been calculated based on the basic street rates provided for every street. As such all the streets in amalgamated Greater Chennai Corporation should also be provided with basic street rate to calculate the property tax.

 3) Since, the Rationalisation Committee has recommended that basic street rate should be fixed for all the streets as like in the core city zones, the basic street rates fixed by erstwhile local bodies were modified to suit the method for core city calculation. (In this method, only the basic street rates were modified to get the same property tax using the Greater Chennai Corporation method, as was calculated for the assessed area using erstwhile method and rate). The basic street rate calculated as above will be considered as basic street rates for levy of property tax as per GCC method.

4) Under section 100(2) of the Chennai City Municipal Corporation Act, 1919, ‘the annual value of lands and buildings shall be deemed to be the gross annual rent at which they may at the time of assessment reasonably be expected to let from month to month or from year to year’

5) To fix the basic street rate for all the streets, the guide line value of the Registration Department for land and Public Works Department rate per square feet for cost of construction of building, should be taken to ascertain the property value as per guidelines of The Tamil Nadu Buildings (Lease and Rent Control) Act, 1960.

Recommendation – 2

Core city calculation and taxation method should be applied for entire Greater Chennai Corporation limits for the assessment of Cinema Theatre, Hospital, Kalyana Mandapams and Star Hotels. As such, Cinema Theatre, Hospital, Kalyana Mandapams and Star Hotels located in the extended area zones should be assessed under “Special type category” as the method is being followed in core city zones.

Recommendation – 3

Core city calculation and taxation method should be applied for entire Greater Chennai Corporation limits for the assessment of Industrial category buildings. As such, the industrial buildings located in the extended area zones should be assessed under the ‘Non-residential category’ as the method is being followed in core city zones.

Recommendation – 4

In the Government letter No. 38279/Elections/2006-2, Municipal Administration and Water Supply Department, dated 01.02.2008, Government had given guidelines that no rebate will be allowed for the owner occupied buildings. As such, the owner rebate which has been allowed in the core city zones should be withdrawn and the method is being followed in extended area zones should be adopted for all type of properties.

Recommendation – 5

Core city calculation and taxation method should be applied for entire Greater Chennai Corporation area for the assessment of semi permanent roof structure properties. As such, 20% rebate should be permitted for the properties which have semi permanent roof structures located in the extended area zones.

 This notification is issued u/s 98- A of Chennai City Municipal Corporation Act, 1919 for levying of property tax. The levy of property tax will be finalized after the 30 days from the date of issuance of this notification.

Objection if any, in this regard may be informed within the stipulated period in writing to the Commissioner, Greater Chennai Corporation, Ripon Buildings, Chennai - 600 003.

[No. SRO C-18/2018]

 

URL- http://www.stationeryprinting.tn.gov.in/gazette/gazette_list.php


Bookmark

Related Updates



Alternate Text

Get updates on the go on RuleZbook Mobile App.