The Hindu : Tamil Nadu / Chennai News : Re-assessment yields more revenue

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Saturday, Sep 29, 2007
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Tamil Nadu

Tamil Nadu - Chennai

Re-assessment yields more revenue

Kannal Achuthan

Chennai: The Chennai Corporation’s intensive drive to re-assess commercial buildings for property tax has brought an additional revenue of Rs. 32.69 crore.

The Corporation recently inspected 27,630 large properties, mostly commercial buildings, to check for under-assessment or non-assessment. Notices were sent to the owners demanding payment, including arrears in the last six years.

The Corporation’s drive was part of its effort to boost the rate of tax collection. Although tax collection rates have improved, property tax arrears due to the civic body amount to Rs. 267 crore. Reasons for the mounting arrears include non-payment of property taxes, owners’ withholding property extent information and under/non-assessment by Corporation officials.

Several property owners are against the Corporation’s move to collect arrears. A T. Nagar resident has filed a case in the Madras High Court saying that the assessment was new and retrospective effect should not be given to the fresh demand.

Several municipal councillors also raised the issue of Chennai Metrowater taxes at the council meeting held on Thursday. They said the Corporation had provided data from the new provisional assessment to Metrowater, which has demanded arrears along with surcharge for the last six years.

Congress councillor Saidai P. Ravi said the Chennai Corporation should not have given the data to Metrowater till a final assessment report was ready. “People are finding it difficult to pay water and sewerage taxes as Metrowater demands a surcharge on arrears based on the new assessment,” he said.

The annual water and sewerage tax is seven per cent of the annual rental value of the building. A surcharge of 1.5 to 2 per cent is added every month when taxes are not paid on time. The last date for payment of Metrowater taxes for the first half year of 2007-08 is September 30.

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