TAMIL  NADU

GOVERNMENT GAZETTE

EXTRAORDINARY

PUBLISHED BY AUTHORITY

©

[Regd. No. TN/CCN/467/2012-14.

GOVERNMENT  OF  TAMIL  NADU

[R. Dis. No. 197/2009.

2022

[Price: Re. 0.80 Paise.

No. 194]

CHENNAI, WEDNESDAY, MARCH 30,  2022

Panguni 16, Pilava, Thiruvalluvar Aandu-2053

Part II—Section 2

Notifications or Orders of interest to a Section of the public

issued by Secretariat Departments.

NOTIFICATIONS BY GOVERNMENT

II-2 Ex. (194)

MUNICIPAL ADMINISTRATION AND WATER SUPPLY DEPARTMENT

GENERAL REVISION OF PROPERTY TAX IN ALL MUNICIPALITIES AND TOWN PANCHAYATS

UNDER THE TAMIL NADU DISTRICT MUNICIPALITIES ACT, 1920

[G.O. Ms. No. 52, Municipal Administration and Water Supply (MA. IV) Department, 30th March 2022,

ðƒ°Q 16, Hôõ, F¼õœÀõ˜ ݇´- 2053.]

No. II(2)/MAWS/205(b)/2022.

WHEREAS the 15th Central Finance Commission in its report has recommended that to qualify for any grants for urban

local bodies from 2022-23 onwards, States will have to appropriately notify floor rates in the year 2021-22 and thereafter

show consistent improvement in collection in tandem with the growth rate of the State’s own GSDP;

AND WHEREAS the Government of India has mandated notifying the floor rates of property tax by the urban local bodies

as one of the entry level conditions for receiving Central assistance under the Centrally sponsored schemes, viz. Swachh

Bharat Mission 2.O and Atal Mission for Rejuvenation and Urban Transformation 2.O;

AND WHEREAS in G.O. (Ms) No.150, Municipal Administration and Water Supply Department, dated 12.11.2007, orders

were earlier issued to the effect that the general revision of property tax in all the Municipal Corporations, Municipalities and

Town Panchayats shall be taken up with effect from 01.04.2008, as per the existing statutory provisions in the relevant Urban

Local Bodies’ Acts and accordingly the revision of property tax was carried out in all Municipalities, Town Panchayats and

Municipal Corporations except the Chennai City Municipal Corporation;

AND WHEREAS subsequently in G.O.(Ms) No.73, Municipal Administration and Water Supply Department, dated

19.07.2018 and G.O. (Ms) No.76, Municipal Administration and Water Supply Department, dated 26.07.2018, orders were

issued for general revision of property tax in all Municipal Corporations, Municipalities and Town Panchayats, with effect from

01.04.2018, as per the existing statutory provisions in the relevant Urban Local Bodies’ Acts;

AND WHEREAS in G.O.(Ms) No.150, Municipal Administration and Water Supply Department, dated 19.11.2019, orders

were issued constituting a Committee to examine the issues related to general revision of property tax in all the Urban Local

Bodies and also for withholding of the general revision of property tax ordered in the said G.O.(Ms) No.73 and G.O.(Ms)

No.76, till the receipt of the report of the Committee and the decision of the Government thereon;

AND WHEREAS the Committee in its report has stated that it is considered that the last revision of property tax carried

out in 1998 and 2008 respectively, for Chennai core city and the rest of the Tamil Nadu and studied the market indices

mentioned below that provide a good proxy for property valuation increase over time in order to ascertain the quantum of

increase in the property tax that can be effected now:-

[ 1 ]

2

TAMIL NADU GOVERNMENT GAZETTE EXTRAORDINARY

(a) Wholesale Price Index Method - The Wholesale Price index (WPI) is an indicator of inflation in the country. The

WPI for 1998-99 is 48.1; for 2008-09 is 80 and for January 2022 is 142.9. The WPI has increased by 2.97 times from 1998-

99 to January 2022 and it has increased by 1.79 times from 2008-09 to January 2022. Thus, it is inferred that the inflation

linked increase for Chennai city (except added areas) can be 2.97 times and 1.79 times for rest of the State.

(b) Cost Inflation Index of income Tax Department –The change in notional value of capital assets due to inflation

over a period of time is prescribed by Income Tax department. The increase in the index from 1998-99 to 2021-22 is 3.8

times and from 2008-09 to 2021-22 it is 2.31 times.

(c) GDP growth method - The GSDP of the State at current prices for 2008-09 was Rs.4,17,272 crore. The GSDP

for 2021-22 is estimated to be around Rs.21,79,655 crore. This shows a growth by a factor of around 5.2 times;

AND WHEREAS the above factors indicate the steady increase over a time in the economic indicators, and during this

period, the property tax has remained the same and the share of own source revenue of urban local bodies have declined

drastically during the period, whereas the revenue expenditure has increased manifold putting the municipal finances under

severe strain;

AND WHEREAS considering the financial needs of the Urban Local Bodies to provide civic infrastructure and basic

amenities/services to the citizens, the mandatory conditions specified by the 15th Central Finance Commission for availing

grants and the entry level conditions for receiving funds under various Central schemes and also the report of the aforesaid

Committee, the Government have decided that the general revision of property tax in all Municipalities and Town Panchayats

may be taken up immediately;

NOW, THEREFORE, in exercise of the powers conferred by section 81-A of the Tamil Nadu District Municipalities Act,

1920 (Tamil Nadu Act V of 1920), the Governor of Tamil Nadu hereby directs all the councils of the Municipalities and Town

Panchayats in the State to levy the property tax at the rates as indicated below, with effect from the 1st April 2022:-

(A) Residential Properties-

Sl. No.

Area (sq.ft.)

Increase Factor

1

<= 600

1.25

2

601-1200

1.5

3

1201-1800

1.75

4

>= 1801

2

(B) Non-Residential Properties-

Sl. No.

Category

Increase Factor

1

Industry

1.75

2

Commercial

2

3

Private Schools and colleges including self-financing

courses/departments in Aided Institutions

1.75

(C) Vacant Land Tax-

Vacant Land Tax to be increased by 100% in all urban local bodies.

(D) Floor Rates-

The Annual value of the property is calculated based on the Zonal Basic Values in the Municipalities and Town Panchayats.

The Property Tax Rate as a percentage is applied on this Annual Value. The existing rates of Property Tax (i.e. % of Annual

Value, which is levied as Tax) in each Municipalities and Town Panchayats may be notified as the Floor Rates of Property Tax.

SHIV DAS MEENA,

Additional Chief Secretary to Government.

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ON  BEHALF  OF  THE  GOVERNMENT  OF  TAMIL  NADU