How much Property Tax Increased in Tamil Nadu?

Wondering about

property tax increase in TamilNadu

? The Tamil Nadu government has recently announced a substantial increase in property taxes across various urban local bodies, including corporations, municipalities, and panchayats.

This decision, outlined in an official statement, reveals a range of hikes from 25% to 150%, with specific rates applied in different regions.

• For instance, in Chennai corporation, properties below 600 square feet will face a 50% tax increase, while those ranging from 600 to 1,200 square feet will see a 75% rise.

• Properties spanning 1,201 to 1,800 square feet will experience a 100% hike, and anything above that size will incur a hefty 150% increase.

• The rationale behind this adjustment stems from the recommendations put forth by the 15th Finance Commission, which highlighted the necessity to align property taxes with current economic indicators.

• The government justified this move by citing inflation and other economic shifts over time, asserting that while these factors have risen, property taxes remained stagnant. Moreover, the government emphasized the dwindling share of revenue generated by urban local bodies, with a manifold increase in expenditure, placing significant strain on municipal finances.

In response to these financial challenges and to meet the demands for civic infrastructure and basic amenities, the government deemed it imperative to revise property taxes. However, this decision has not been without opposition. The AIADMK criticized the DMK government for the tax hike, viewing it as a precursor to further burdensome measures in the future.

Despite this backlash, the government remains steadfast in its commitment to addressing the fiscal needs of urban local bodies while adhering to the conditions set forth by the 15th Finance Commission and leveraging opportunities for funding through central schemes.

In summary, the property tax increase in Tamil Nadu reflects a strategic effort by the government to bolster municipal finances and meet the evolving needs of urban communities, albeit amid political contention.

This is all about

property tax increase in TamilNadu

.

Read more

I do read newspapers a lot, and in the previous year, there were several news surrounding the property tax increase in Tamilnadu. The hike was so great that it came as a shock to not only the residents of Tamil Nadu but also to the whole nation. The government of Tamil Nadu increased the property tax for all local bodies in the state, and the residents of the core areas of Chennai were set to pay at least 50% more than what they were giving. I cannot state how much property tax increased in Tamil Nadu without mentioning all the divisions precisely. So let me highlight the hike percentage on different aspects I read about. 

How much is the property tax in Tamil Nadu?

After a gap of two decades, or 24 years to be precise, Tamil Nadu revised its property tax to boost revenue for local bodies. In Municipality and Town Panchayats, it came into existence in April. In corporations, including Chennai, it was supposed to be in effect once the proposals got adopted by the respective councils. So here is the hike chart-

This was the latest property tax increase in Tamilnadu proposed.