Out of a total of 77.87 lakh houses in Tamil Nadu, the 25% increase in property tax will cover approximately 45.54 lakh houses and 50% will cover 19.23 lakh houses. The upcoming hike rate will range from 25%-50% and is going to affect about 83% of the houses in the Tamil Nadu region.
The officials have clarified that concerning town panchayats and municipalities, the state government has issued the circular of the direction for the increase. In the case of 21 municipal corporations, the government has directed the local bodies about the increase. The council of the corporations is expected to raise the tax slab and adopt a resolution.
The measure has been taken after taking many considerations such as Wholesale Price Index, Economic Growth, Guideline Value of the Land, Expenditure of the Urban Local Bodies, and many others. Another official explained that WPI has gone up to 2.9 times since 1998 and 1.79 times since 2008.
The State’s policy favors the implementation of a progressive and equitable tax structure in areas that come under the Adyar Zone (No.13). The current median value of the annual property tax for a 600-square foot house is Rs.308, and it might get up to Rs.462. In the same region, the respective configuration for 1201 sq. ft. to 1800 sq. ft. is Rs.1461 and Rs.2922 respectively. For houses that fall under the Thiruvottiyur zone (no. 1), the current median rates for a 600 sq. ft. house of configuration 1201 sq. f.t to 1800 sq. ft. are Rs.211 and Rs.736 respectively. The rise in hike will collect the median rate of Rs.264 and Rs.1288.
