Property tax exemption for education institutions revoked

The Corporation levied property tax based on annual rent reasonably be expected to let from month to month or from year to year. Earlier, in Section 101 of the Chennai City Municipal Corporation Act 1919, the buildings used for educational purposes, including hostels and libraries, were exempt from paying the half-yearly property tax. 

Now, following the amendment of this section, private educational institutions and self-financing institutions will have to shell out property tax. Government aided institutions which are conducting self-financing courses too will come under this bracket. However, the buildings of government or local body run- or aided institutions will be exempt from paying the tax. 

This move came after the introduction of a bill to this effect in the assembly in January this year by Minister for Municipal Administration SP Velumani, to bring about a uniformity in tax assessment. This was adopted based on the recommendations of the third state finance committee.  

The property tax assessment of private educational institutions will be at the rate of residential buildings plus a 60% surcharge of such tax for all buildings under this purview. 

The proposed changes would be taken up for consideration by the Chennai Corporation after 30 days from the date of publication of the notice. Objections to this amendment can be lodged with the Corporation Commissioner, Ripon Buildings, in writing within the stipulated period.