Draft plan ready to effect property tax hike

The proposed revisions are likely to come into effect from July 1

Close on the heels of the State government’s decision to revise property tax across the State, the Tiruchi Corporation has formulated a plan to give effect to the hike under various heads of assessments.

According to sources, there are about 2,30 lakh residential assessments in Tiruchi. More than 24,000 properties are classified as commercial assessments. A total of 293 properties figure under the list of educational institutions.

Property tax on residential buildings that measures between 601 sq.ft. and 1,200 sq.ft. will be increased by 50%. The properties between 1,201 sq.ft and 1,800 sq.ft will attract a hike of 75%. The residential buildings above 1,801 square feet will have to pay 100% more than that of the existing tax. The properties that measure less than 600 sq.ft will attract a hike of 25%.

As far as commercial assessments are concerned, the property tax will be increased by 100%. It means that if an assesses pays ₹1,000 a year for a commercial property, he or she will have to pay ₹2,000 once the new tax slab rates come into effect.

As per the provisional estimate, nearly 50% of the residential properties will attract less than 25% hike in property tax. About 40% of the residential buildings will be levied 50% hike. Remaining 10% of the buildings will attract 100% increase.

A senior Corporation official told The Hindu that the proposed hike in property tax was nominal as the hike on nearly 50% of the properties was just 25%. The hike on next 50% of the residential properties was 50%. The tax slab had been arrived at after taking into account various aspects. The proposed revision would be placed before the Corporation Council shortly for discussion and ratification. Residents can also air their views and grievances.

The official added that the proposed revisions are likely to come into effect from July 1. No new assessment of properties would be done up to June 30. The tax on new properties would be calculated based on the new tax rate. A team of officials had been asked to take preliminary steps to give effect to the new tax rate.