Madurai civic body to have highest property tax in Tamil Nadu

Madurai civic body to have highest property tax in Tamil Nadu
21/12/2018 , by , in ALLIED

The residents of Madurai will be among the highest property tax payers in the state as the property tax reforms, earlier proposed for April 2018 and held back for unsaid reasons, will come into effect by mid-2019.

When the tax was revised in 2008, Madurai had the steepest hike which was four and half times more at 3 per square feet for a residence against Re 0.66 of 1998. Now the property owners in the city will have to pay 4.50 per square feet.

Secretary of the MakkalVillipunarvuMantrumMempaduSevaiSangam T R Desikachary said that property tax had been assessed based on square feet area from April 1, 1993 at the rate of 0.55 for residences per month, amounting to 6.60 annually.

The rate was revised to 0.66 on October 1, 1998. When the tax was revised in 2008, it was hiked by 450% to 3 per square feet from the previous 0.66.

At present, the property tax is levied at 27% of the annual rental value. The rent is fixed based on the area under which the property falls. In 1993, the city was divided into eight areas.

Commercial area C1 had 90% commercial establishments, while C2 had 80% commercial firms and 20% residential buildings. For C3 it was 60% and 40% respectively and C4 it was 50% each.

Residential areas were classified into R1, R2, R3 and R4, which are an inverse of the commercial areas. R1 had 90% houses and 10% commercial establishments. Later it was classified into A B C and D, where the previous C1 and C2 were brought under A, C3 and C4 under B, etc.

Till 1998, the assessment was done hypothetically based on the rent of the building. But, as the assessment was not done accurately for many buildings, there are discrepancies in the present assessment rates. “Madurai is least developed among the cities, hence paying more tax than other cities is not justified,’’ said Shenbagaraman of Vandiyur.

In a notification issued by the Madurai Corporation on September 18, 2018, it is stated that tax would be revised from 3 per square feet to 4.50 for those coming in the A category, and for commercial establishments it would be 18 in the same category. In the B category, it is 3 against 2 for residents and increased accordingly.

As per the guidelines, the basic value is that of the houses and for factories it should be two times that of the basic value and for commercial establishments three times the basic value. But, in the new revision, the commercial establishments would incur a hike which would be almost four times that of the basic value, as it should be only 13.50 and not 18.

Surprisingly tax was not revised in Salem Corporation in 2008. In the new revision, Salem residents would not be affected much as they will have to pay not more than 20% of their old tax rates, which is 1 for the A category.

Madurai Corporation commissioner AneeshSekhar said that the civic body would be able to fulfillmany of its needs when the revision comes into effect.

About admin

Loading...