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Tax on new buildings to be revised

Staff Reporter

For the moment, the Chennai Corporation will not revise the property tax for buildings constructed after October 1, 1998, but it will tax those constructed after December 1, 2004 as per the new rates. Tax structure after 1998 revision Chennai Corporation will levy same charges as on structures built before October 1, 1998


  • 25 per cent hike for residential buildings with owner occupancy
  • 50 per cent hike for residential buildings with tenant occupancy
  • 90 per cent hike for commercial buildings with owner occupancy
  • 100 per cent hike for commercial buildings with tenant occupancy

    CHENNAI: The Chennai Corporation has resolved to tax new buildings on par with those constructed before October 1, 1998. It passed a resolution to this effect at its council meeting on Wednesday. The decision attempts to eliminate an anomaly in which the property tax for buildings that came up after October 1, 1998 was lower than the existing ones.

    However, the corporation has retained the existing property tax for buildings that came up between October 1, 1998 and December 1, 2004. Buildings constructed during this period will continue to enjoy the concession. The civic agency is yet to come clear on its plans on when it would set right this irregularity.

    The property tax anomaly arose after the revision in 1998, which the civic body sought to correct through a resolution in June 2002. Later, the matter was referred to the Government. The Government wrote back in December 2004, stating that the Commissioner was competent to implement the decision with the guidance of the Council.The resolution passed on Wednesday annuls all notices served on property owners during the period.

    Responding to the Opposition queries, Vijayaramakrishna, chairman of the standing committee on taxation and finance, explained that there had been no new hike in property tax brought about by the AIADMK regime. The increase was due to the 1998 revision of the tax structure done after the basic rate for all areas in the city was worked out in 1993-94. R. Mano and S. Narayanan (both Congress) cited a few instances where the demand notices served on several property owners showed a sudden increase in their tax amount from the first half year of 2005-06. V. Sukumar Babu, AIADMK, said the anomalies could be due to errors in inputing information.

    Mr. Mano also wondered why the civic body's revenue department did not undertake a door-to-door assessment in the city as the assessee base was only 4.5 lakhs while the electricity board had 18 lakh consumers.

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