Tiruchi Corporation increases property tax by 6%

The Tiruchi Corporation has increased the property tax by 6%, two-and-a-half yeas after the previous revision.

The Tiruchi Corporation has increased the property tax by 6%, two-and-a-half yeas after the previous revision.

The new tariff comes into force with effect from October 1. The taxes on residential and commercial buildings were last increased in the year 2022-23.

As per the resolution adopted by the Corporation in April 2022, property tax on residential buildings that measured between 601 and 1,200 sq. ft, went up by 50%. For properties measuring between 1,201 and 1,800 sq. ft., the tax increase was by 75%. The tax on the residential buildings above 1,801 sq. ft went up by 100%. For properties that measured less than 600 sq. ft, the tax was increased by 25%. As far as commercial assessments were concerned, the property tax was increased by 100%. The vacant plots attracted a hike of 100%.

As per the new revision of property tax that came into effect from October 1, property owners will have to pay 6% more tax on buildings. If an assessee had been paying ₹10,000 a year towards property tax, the increased tax will be ₹10,600. If the taxpayer pays the property tax within April, he/she can claim 5% incentive on total tax value. If the assessee fails to pay the taxes before September for the first half of the assessment year, he/she will be levied 1% penalty for every one month of delay. If the delay extends for 12 months, the penalty will be 12% on a cumulative basis.

Based on the new assessment the Tiruchi Corporation has begun serving notices to the property owners in all five zones.

Stating that the new increase in property tax had been given effect as per the GO issued in 2022, a senior official said the Corporation council had given its approval in April 2022 itself. The G.O. sought to increase the property tax by 6% every year. As per the G.O., the property tax should have been increased from April 2023 and then from April 2024. However, it had been increased only from October 1.

The increased tax would be collected only for six months in the 2024-25 fiscal. The tax collection as per the revised rate was on.