Revised fee for property tax name change comes as a shocker to Tambaram residents

Since they were unaware of the new tariff structure, residents in some areas are delighted with the unexpected drop in tariffs, while others are caught unaware by the surge in charges.
Image is for representation purposes only
Image is for representation purposes only Credit: Pixabay
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3 min read

CHENNAI: The Tambaram City Municipal Corporation (TCMC) has implemented a revised tariff for name changes in property tax to bring uniformity between its added areas and the areas that were already under Tambaram Corporation. Although the revised fee was approved by the council and came into effect on April 1, 2022, the lack of communication between the corporation and the public has led to people being taken aback by surprise when applying for a name change.

A resident of Chromepet (formerly under Pallavaram Municipality) had recently purchased a flat for Rs 42 lakh. When he approached TCMC to update his name on the property tax receipt, he was shocked at being charged Rs 20,000 for the service. Previously, under Pallavaram Municipality, there was no charge for such a request.

On the other hand, a buyer in Anakaputhur, another area newly merged with TCMC, paid Rs 10,000 for changing the name on his property, valued at Rs 36 lakh. This is lesser in comparison to the earlier charge of Rs 1,000 per lakh for the property’s registered value in the erstwhile Anakaputhur municipality, which would work up to Rs 36,000.

Since they were unaware of the new tariff structure, residents in some areas are delighted with the unexpected drop in tariffs, while others are caught unaware by the surge in charges.

According to TCMC sources, the revised tariff was introduced to streamline varying rates across several newly integrated local bodies, such as Pammal, Pallavapuram, Anakaputhur, and Sembakkam municipalities, as well as Madampakkam, Chitlapakkam, Thiruneermalai, Perungulathur, and Peerkankaranai town panchayats. These areas previously had a varying range of tariffs for name changes in property tax- from no charge to one per cent of the property’s registered value.

TCMC had invited public opinion before the tariff was revised, receiving only one objection and suggestion, which was addressed before the council’s final approval.

Officials emphasised that under Section 306 of the Tamil Nadu District Municipalities Act, 1920, local bodies are empowered to modify tariffs with council approval. They further justified the revised tariff, citing the need for funds to improve basic infrastructure across TCMC’s expanded jurisdiction. Since the new tariff’s implementation, approximately 2,500 property buyers have updated their property tax records. However, residents like VS Jayaraman have raised concerns, comparing TCMC’s fees with those of Chennai Corporation (CC). He noted that the corporation does not charge for title transfers if done within three months of purchase, with a late fee of only Rs 50 for delays beyond that period. He urged TCMC to adopt a similar model, arguing that as a newly designated corporation, TCMC should align its practices with other major urban bodies.

A section of ruling DMK councillors, speaking on condition of anonymity, argued that while the revised tariff may have been necessary, the corporation failed to adequately communicate the rationale behind the revision to the public. “Now, councillors are facing the wrath of property buyers without any proper explanation to offer,” they said.

Selaiyur G Sankar, the opposition floor leader at TCMC, was critical of the new fees, stating, “TCMC has hiked the charges into the thousands, yet there has been no improvement in infrastructure. The increased tariff has only added to the burden on property buyers.”

DURAI

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