Fund-starved Madurai civic body awaits property tax revision
The decision to revise property tax has not gone well with the residents, but for the Madurai Corporation it is a long awaited one. The local body has been under severe stress due to fund crunch and it was a cause of concern as they were not able to provide amenities.
The last time the property tax revised was in 2008. The order from the municipal administration and water supply department has allowed the Madurai city corporation to revise up to 50 % for the residential buildings and 100 % for both rented residential buildings and non-residential buildings.
The property tax at present is levied at 27% on the annual rental value of the property. It has components of general purpose at 10%, solid waste management at 2%, water supply at 4% and drainage and elementary education respectively at 6 and 5%. Officials said that rental value is fixed based on the category under which the area falls.
An official from the corporation said property tax is a main component in the revenue of Madurai Corporation. While the expected revenue for the financial year 2018-19 through various taxes was Rs68.88 crore, around 50% of it was expected from residential property taxes alone.