CHENNAI: While the AIADMK government increased the property taxes indiscriminately for everyone, the present government has taken into consideration the area of houses, to ensure the poor are not affected, Municipal Administration and Water Supply Minister KN Nehru said on Tuesday, adding that more than 83 per cent of houses are in the category that will witness a tax hike of 25-50 per cent.
Addressing the media at the Secretariat, he said that out of the 77.87 lakh houses in the State, only 1.09 lakh (1.4 per cent) will witness a tax hike of 150 per cent. Of the 44.53 lakh households, 58.48 per cent will see an increase of 25 per cent while 24.70 per cent will have a 50 per cent hike.
As far as Chennai Corporation is concerned, of the 11.03 lakh houses, 1.52 lakh will witness a 25 per cent increase in property tax, while 3.46 lakh and 3.12 lakh houses will have respective tax hikes of 50 per cent and 75 per cent. The guideline value of land in both core areas and extended areas has increased manifold, the minister said.
The rise in property tax will come into effect from the first quarter of 2022-23. Local bodies are to pass resolutions to this effect, Nehru said, adding that property tax rates in Tamil Nadu are still lower than in other parts of India.
He also said the erstwhile AIADMK government had increased tax rates by up to 300 per cent in 1987. That year, property tax was hiked by 100 per cent for own houses, 200 per cent for rented houses, and 300 per cent for commercial spaces and industries.
In the next AIADMK regime in 1993, it was again increased by 50 per cent for own houses, 100 per cent for rented houses, 150 per cent for industries, and 200 per cent for commercial spaces.
Under the DMK in 1998, the tax was increased by 25 per cent, 50 per cent, 100 per cent, and 150 per cent respectively. In 2008 (DMK period), it was hiked by 25 per cent for all houses, 100 per cent for industries, and 150 per cent for commercial spaces.
Nehru further said the tax rates were revised based on the 15th Finance Commission's recommendations to fix minimum floor rates for property tax as mandated by the Union government.