Property tax evaluation is based on plinth area, explains official
Coimbatore - Many people get confused whether it is the plinth area or the carpet area that has to be considered while assessing property tax.
Well, Mr. Sundararajan, Assistant Commissioner, Revenue, clarifies the doubt with clear explanation. He said that the Coimbatore Corporation considers the plinth area and not the carpet area in assessing property tax.
This clarification was given following questions raised by several residents and civil society activists.
There are some people who argue that the Corporation should assess the tax based on carpet area and it is wrong to take plinth area into consideration. Some activists even show documents under the Right to Information Act that substantiate their claim.
But the official makes it clear as what is the reason behind their stand. The State Government brought in the Tamil Nadu Municipal Laws Second Amendment Act in 1998 which is also called the Act 34 of 1998 in order to change the system of property tax assessment. This Act is an amending act for Act 65 of 1997. However, Act 34 of 1998 says that municipalities and corporations should go by the carpet area to assess the property tax.
In drafting Act 65 of 1997, the State Government had said that it would come into effect from the date on which it notified the effective date. But the Government had not notified the effective date for Act 65 of 1997, thereby not making it effective.
Consequently, the Act 34 of 1998 was also not effective as it was only an amending act to Act 65 of 1997. This is made sure in a letter dated July 28, 2004 from the Commissioner of Municipal Administration.
The letter states: “In amending Acts 65 of 1997 and 34 of 1998 certain sections of Tamil Nadu District Municipalities Act and other Corporation Acts were amended. The amendments mainly relate to property tax management in municipalities and corporations. In Section 2 of Act 65 of 1997, it is specifically indicated that the amendments would come into effect from the date on which the effective date is notified by the Government. In Act 34 of 1998, which is [the] amending Act for 65 of 1997, even though it has been mentioned that it would come into immediate effect, since the main Act 65 of 1997 itself is yet to be made effective, Act 34 of 1998 also [does] not come into effect.”
The Coimbatore City Municipal Corporation Act that is in force gives power to the Corporation Council to find out the ways to entail property tax. And, the Council vide resolution 403 of November 4, 1998 clearly states that the Corporation has to consider the plinth area.
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Act 34 of 1998, Act 65 of 1997, assessing property tax, Carpet area, Coimbatore Corporation, plinth area, property tax, property tax management, Right to Information act
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