Corpn mulls removing spl building category from tax assessment
CHENNAI: In a major restructuring of property tax assessment, the Greater Chennai Corporation is mulling to remove the special buildings category and to calculate property tax rates for such structures under commercial category.
According to a Corporation official, the move would simplify property tax assessment and help avoid anomalies.
“As of now, we are calculating property tax rates for luxury hotels, lodges, marriage halls and hospitals proportionate to the room tariff. Discussions are under way to modify the existing process,” the official said.
However, several property owners have complained of anomalies in calculating tax based on room rent and approached the Property Tax Tribunal seeking relief. Before the tribunal pronounces verdict on such appeals, officials would not be able to collect the tax, which affects the civic body’s revenue.
When asked how the move would affect the tax collection, the official explained that many big buildings are paying relatively lesser amount as tax as it is based on room rent. “When the tax amount is calculated based on the size, the collection from bigger buildings will go up while owners of smaller special buildings would have to pay lesser amount. Considering this, there would be no major change in the overall property tax demand of the civic body,” the official explained.
The city Corporation collected Rs 165 crore property tax during the first half 2020-2021 fiscal (April to September) even though tax collection was hit by the pandemic. On the last day of the half year (September 30), the civic body collected Rs 24 crore in property tax and Rs 42 crore in professional tax.
The Corporation had issued an order imposing two per cent penalty on property owners who fail to pay taxes on time, while offering five per cent incentive for those who pay it promptly.
Several property owners have complained of anomalies in calculating tax based on room rent and approached the Property Tax Tribunal seeking relief