Chennai: The Tamilnadu government has increased property tax for local bodies in the State with residents of Chennai’s core areas set to pay 50 per cent more.
The government has decided to increase the property tax in all Municipal Corporations, Municipalities and Town Panchayats under the Tamilnadu District Municipalities Act, 1920.
The decision followed the recommendation of the 15th Finance Commission, the government said. While the hikes will come into effect immediately in Municipality and Town Panchayat limits, in Corporations, including Chennai, it would take effect once the proposals are adopted by the respective councils.
According to a gazette notification issued by Municipal Administration Secretary Shiv Das Meena, for residential properties below 600 sq.ft in town panchayats and municipalities, taxes will be hiked 25 per cent; for properties between 600 sq.ft and 1,200 sq.ft, the tax hike will be 50 per cent; for properties between 1,201 sq.ft and 1,800 sq.ft the hike will be 75 per cent; and properties above 1,800sqft, property tax rates will be hiked 100 per cent.
The government said the tax hike had been done to comply with the Centre’s norms and seek grants for the state. Besides, there had been a drastic decline in revenue for the civic bodies and an increase in their expenditure.
Since most people live in buildings below 1,200 sq.ft, the tax hike would not affect people in a big way, the release added.