General Revision of Property Tax in All Municipalities and Town Panchayats under the Tamil Nadu District Municipalities Act, 1920
The Government of Tamil Nadu, through the Municipal Administration and Water Supply Department, issued G.O. Ms. No. 52, Municipal Administration and Water Supply (MA. IV) Department, dated 30 March 2022, directing all municipality and town panchayat councils in Tamil Nadu to revise and levy property tax from 1 April 2022. It sets increase factors for residential and non-residential properties, increases vacant land tax by 100 per cent, and permits existing property tax percentages to be notified as floor rates.
What the notification governs
G.O. Ms. No. 52, Municipal Administration and Water Supply (MA. IV) Department, dated 30 March 2022, directs all councils of municipalities and town panchayats in Tamil Nadu to levy revised property tax from 1 April 2022. The direction was issued under the Tamil Nadu District Municipalities Act, 1920.
The notification covers residential properties, non-residential properties and vacant land within municipalities and town panchayats. It does not direct municipal corporations to apply these rates.
Who is affected
G.O. Ms. No. 52 affects owners and taxpayers of properties assessed by municipalities and town panchayats. The increase applicable to a property depends on its floor area if residential, or its use if non-residential. Vacant land taxpayers are covered separately.
Key property tax changes
The Municipal Administration and Water Supply Department prescribed these increase factors:
Residential properties
- Up to 600 square feet: 1.25
- 601 to 1,200 square feet: 1.5
- 1,201 to 1,800 square feet: 1.75
- 1,801 square feet and above: 2
Non-residential properties
- Industry: 1.75
- Commercial property: 2
- Private schools and colleges: 1.75
- Self-financing courses or departments in aided institutions: 1.75
Vacant land
- Vacant land tax is to be increased by 100 per cent in all urban local bodies.
Floor rates
Under G.O. Ms. No. 52, annual property value is calculated using zonal basic values in municipalities and town panchayats. Property tax is then applied as a percentage of that annual value. The existing property tax percentage in each municipality and town panchayat may be notified as its floor rate.
Reasons given for the revision
The Government of Tamil Nadu referred to Central grant conditions, economic indicators, rising expenditure and pressure on municipal finances. It also noted that urban local bodies need revenue to provide civic infrastructure, basic amenities and services. Earlier property tax revisions ordered in 2018 had been withheld in 2019 while a committee examined the issue.
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Common questions
From what date do the revised property tax rates apply?
The revised property tax is to be levied from 1 April 2022.
What increase factor applies to a residential property of 1,000 square feet?
A residential property between 601 and 1,200 square feet has an increase factor of 1.5.
How does the notification affect vacant land tax?
Vacant land tax is to be increased by 100 per cent in all urban local bodies.
Does this notification direct municipal corporations to use these rates?
No. G.O. Ms. No. 52 directs the councils of municipalities and town panchayats to levy the stated rates.
