CHENNAI: City residents may soon be able to pay their property and water taxes through a single platform as the state is conducting a feasibility study for their integration.
Currently, taxpayers have to navigate separate portals for property tax under the GCC and water tax through the Chennai Metropolitan Water Supply and Sewerage Board (CMWSSB). The proposed unified platform aims to simplify the tax payment process and thereby improve efficiency in tax collection as well.
GCC deputy mayor M Magesh Kumaar said, “If implemented, the new single-window system will direct taxpayers’ payments into an escrow account under the GCC after which the funds will get distributed to the respective departments, ensuring seamless revenue management.”
According to sources, both departments are conducting test calculations by determining the number of taxpayers in both departments and identifying mismatches. For instance, the GCC does not collect property taxes for houses on poramboke land without patta. However, these households may still receive basic amenities, including water connections and therefore pay taxes to CMWSSB.
Similarly, as per Section 87 of the Tamil Nadu Urban Local Bodies Act, 1998, GCC has exempted property taxes for places of public worship and educational institutions. Yet, these places still pay water taxes.
A CMWSSB official said discrepancies also arise as some domestic water connections are used for commercial purposes illegally. To overcome such challenges during integration, the GCC and CMWSSB are relying on TNEB data, which is more accurate. However, as the process is complex and time-consuming due to technical challenges, the integration is likely to take time.
GCC officials added since both the civic body and CMWSSB has limited human resources for tax collection, an integrated platform will be helpful for both.
The CMWSSB calculates water and sewerage tax as 7% of the annual rental value fixed by the GCC for property tax, with the amount collected in two batches per year.
CMWSSB has at least 14 lakh consumers, receiving Rs 1,050 crore taxes in 2024-25, following the recent tax revision. In previous years, the sewerage board collected around Rs 800 crore per annum. The GCC, with 13.19 lakh taxpayers, collected Rs 2023.89 crore as property taxes in 2024-25.
KP Bhanuchandran, city revenue officer of the corporation attributed the increase to the introduction of QR codes for property tax payments and verification. In addition, the revision of taxes for commercial establishments following GIS mapping and a drone survey contributed to the rise.
Integration work time-consuming
A CMWSSB official said discrepancies also arise as some domestic water connections are used for commercial purposes illegally. To overcome such challenges during integration, the GCC and CMWSSB are relying on Tamil Nadu Electricity Board data, which is more accurate. However, as the process is complex and time-consuming due to technical challenges, the integration is likely to take time.
Better grievance mechanism
M Raja Rajan, a resident of Mathur, said, “CMWSSB responds to our queries only when we approach them during tax payments. Otherwise, they do not respond to complaints properly. If payments are made through a single portal, we will not be able to reach CMWSSB at all.” He stressed the need for strengthening grievance redressal mechanisms as well.
Seamless revenue management
Benefits of integration
One platform to pay both taxes reduces complexity
Will streamline tax payments, increase compliance, reduce arrears
Helps to address limited manpower in both depts
Property tax
13.19 lakh taxpayers
GCC collected Rs 2,023.89 cr in 2024-25, the highest in past 18 years
Challenges of integration
Identifying discrepancies between property, water tax records
Need to address discrepancies in domestic vs commercial usage connections
Residents fear loss of direct communication with Metrowater board
Water tax
14 lakh consumers
CMWSSB collected Rs 1,050 cr in 2024-25 after recent tax revision, up from Rs 800 cr in previous years