CHENNAI: The Directorate of Municipal Administration has instructed the commissioners of municipal corporations in the State to ensure collection of vacant plot tax for 6 years before approving the building plans.
In a letter to the commissioners, S Sivarasu, Director of Municipal Administration said that property tax should be collected for vacant plots except the agricultural lands as per the Tamil Nadu Urban Local Bodies Rules 2023. As per section 97 of Tamil Nadu Urban Local Bodies (Amendement) Act, 2022 and section 259 (1) (e) of Tamil Nadu Urban Local Bodies Rules, taxes that were not collected for a long time should be collected for the past 6 years, retrospectively.
The letter said that the city corporations, except Chennai Corporation, are facing revenue loss due to non-collection of property tax against vacant plots. “Whenever planning permission applications are made in local planning authorities, property tax for 6 years should be collected for the entire extent of plots instead of collecting tax for certain portions, “ the letter instructed.
The letter added that the planning permissions should be recommended only after the collection of property tax without any dues. Apart from collecting the tax for 6 years, the property tax for the current half year will also be collected.
The commissioners have been instructed to communicate with registration department offices directing them to register vacant plots only if the public concerned submit payment receipts of vacant land property tax payment.