Property tax: GCC changes rating method to avoid getting foxed

CHENNAI: Presently, the civic body assesses the property tax of the special buildings based on the rents they collect from customers and patients and ticket prices. “A certain percentage of the rents and charges are being levied as property tax. If the rents are higher, the owners should pay higher property tax,” an official said.

As per the resolution passed in the Chennai Corporation Council to modify the assessment method, property tax assessment for the special buildings will be carried out based on the extent of the building.

“The new change will be implemented during the property tax revision exercise to be conducted based on the recent government order. Apart from the size of the building, basic street rates of non-residential buildings will be considered,” the resolution said.

The official confided that most of the special buildings produce fake bills to reduce the tax amount, causing revenue loss to the civic body.

Moreover, the civic body will increase the property tax of vacant plots to Re 1 from 50 paise per sqft. If any building premises left two-thirds of the land vacant, the tax will be levied at Re 1 per sqft. Apart from the changes in assessment for the special buildings, the civic body will give a rebate to residential buildings based on the age of the buildings. For the buildings constructed before March 1997, the civic body will give a 10 per cent rebate in total property tax and a 6 per cent rebate to the buildings constructed between April 1997 and March 2007.

Moreover, a 3 per cent rebate will be given to buildings constructed between April 2007 and March 2017. No rebate for the buildings constructed after April 2017. Meanwhile, the civic body requested the building owners in the city to pay taxes before April 15 to get a 5 per cent incentive and to avoid the 2 per cent penalty.