Property Tax Tamil Nadu
Img : realtymonks

In Tamil Nadu, the residents of Madurai city will be ranked as the highest taxpayers and this is due to the property tax reforms that were earlier proposed in April 2018 but were put on hold for some reasons. Now, these reforms will be implemented by mid-2019.

Earlier in the year 2008, when the tax was revised, the Madurai city had a sudden hike that was four and half times greater at 3 per square feet of a residence against Rs. 0.66 of 1998. But, now the property owners in the city have to pay Rs. 4.50 per square feet.

T R Desikachary, the Secretary of the Makkal Villipunarvu Mantrum Mempadu Sevai Sangam said that the property tax had been assessed on the square feet area from April 1, 1993 at a rate of 0.55 for residential properties per month that totals upto 6.60 annually.

On 1st October 1998, the rate was revised to 0.66 after which they witnessed a hike of 450% to 3 per square feet from the previous 0.66 in the revision that took place in the year 2008.

Currently, the property tax is levied at 27% of the annual rental value and the rent is fixed based on the localities under which the property lies. In the year 1993, the Madurai city was divided into eight areas that included Commercial area C1 had 90% commercial establishments, C2 had 80% commercial firms and 20% residential buildings in C3. Whereas, for C4 and C5 it was 60% and 40% respectively.

Similarly, the residential areas were classified into R1, R2, R3 and R4. Here also R1 had 90% houses and 10% commercial establishments. Later on they were classified into A B C and D, whereas C1 and C2 were brought under A, C3 and C4 under B, and more.

In the latest notification issued by the Madurai Corporation Body on September 18, 2018, said that the property tax will be revised from 3 per square feet to 4.50 for the structures falling under the A category, and for commercial establishments it would be 18 in the same category. Similarly, in category B, it is 3 against 2 for residents.

According to the new version, the commercial properties will induct an increase that will be nearly four times of the basic value, which should be only 13.50 and not 18. Whereas the guidelines states that the basic value is that of the houses and for factories should be two times of the basic value and three of the basic value for the commercial establishments.

Aneesh Sekhar, Madurai Corporation commissioner was quoted saying that Municipal body will be able to manage its requirements when the revision of the property tax takes place.

Shilpa Sardare Jain
Shilpa Sardare Jain is a journalist and works as a content writer with us. Her journalistic background helps her cater the viewers with accurate news about everything around. She is experienced at writing articles, blogs, features and news related to different genres. She started her career with News24 News channel and then worked with a leading digital media channel One India News and few others. Shilpa Sardare Jain is a joyful person who loves to explore new places and food when not working. Also, she has the zest for reading autobiographies of politicians who took the world by storm.