The Tamil Nadu State Government deducted the property tax rate from 100% to maximum of 50% for the residential buildings. This move was taken by the Government after the urban local bodies increased tax to 100% from 50%. The State Government made this rollback after the public, RWA [Residential Welfare Association] and various Organizations urged to reduce to tax percentage as this will be a huge financial burden.
The Municipal Corporation and Water Supply department asked several urban local bodies including the Greater Chennai Corporation, 11 other municipal corporations, 124 municipalities and 528 town panchayats to revise the property tax from the ongoing half-year which commenced on April 1. According to an official, the revised rate has a rollback of property tax from 100% to not more than 50%.
The Madras High Court ordered to revise property tax rate in July 2018 as the Chennai Municipal Corporation made last rate revision in the year 1998 inspite of the amended law that rules the revision of property tax must take place after every five years. Apart from the Chennai Municipal Corporation, several other urban bodies revised the property tax in1998 but no such revision took place after it, however, the revision was due in 2013. Also, the proposed revision for residential building cannot exceed 50% and 100% is the rate for non-residential buildings having rental accommodation.
Earlier, in the year 1998, the property tax revision was 50% maximum for residential buildings, 100% for rented residential buildings and the commercial/industrial buildings had to bear 150% tax. However, the next revision made in the year 2008, stated a maximum of 25% for residential buildings, 150% for commercial and not more than 100% for industrial buildings.