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: Rs. 3.20 Paise.
No. 218]
CHENNAI, MONDAY, APRIL 11, 2022
Panguni 28, Pilava, Thiruvalluvar Aandu-2053
Part III—Section 2
Statutory Notifi cations and Orders issued by
Heads of Departments.
NOTIFICATIONS BY HEADS OF DEPARTMENTS, ETC.
III-2 Ex. (218)
[ 1 ]
GREATER CHENNAI CORPORATION
REVENUE DEPARTMENT
NOTIFICATION FOR IMPLEMENTATION OF GENERAL REVISION OF PROPERTY TAX IN LIMITS OF GREATER
CHENNAI CORPORATION WITH EFFECT FROM CURRENT HALF YEAR (i.e. I/2022-23)
(R.D.C.No.G1/6743/2008, dated 11.04.2022)
No. SRO C-11(a)/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 fl oor 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 fl oor 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 2.0 and Atal Mission for Rejuvenation and Urban Transformation 2.0;
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 Corporation 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 eff ect 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 considering the last revision of property tax carried out in
1998 and 2008 for Chennai core city and rest of the Tamil Nadu respectively the following market indices 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 eff ected.
2
TAMIL NADU GOVERNMENT GAZETTE EXTRAORDINARY
(a) Wholesale Price Index – The Wholesale Price Index (WPI) is an indicator of infl ation 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 infl ation linked increase for
Chennai city (except added areas) can be 2.97 times and 1.79 times for rest of the State.
(b) Cost Infl ation Index of Income Tax Department: The Change in Notional Value of Capital assets due to infl ation
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
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 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 has declined drastically
during the period, while the revenue expenditure has increased manifold putting the municipal fi nances under severe strain;
AND WHEREAS, considering the fi nancial needs of the Urban Local Bodies to provide civic infrastructure and basic amenities/
services to the citizens, the mandatory conditions specifi ed by the 15th Central Finance Commission for availing the grant and
the entry level conditions for receiving funds under various Central schemes and also the report of the aforesaid Committee,
the Government have decided to accept the report of the Committee Vide G.O.(Ms)No.53, Municipal Administration and Water
Supply (MA.IV) Department, dated 30.03.2022 and has advised that the General Revision of Property Tax in all the Municipal
Corporations including Greater Chennai Corporation, may be taken up by the respective Councils as per the laws governing
the relevant Municipal Corporations.
AND WHEREAS, as per Chennai City Municipal Corporation Act, 1919, Schedule –IV, Taxation Rules, Part 1-A. Rule 3(3),
“the Commissioner shall assess the property tax having regard to, the property tax payable by the owner or the occupier with
reference to the guidelines, if any, issued by the council”.
AND WHEREAS, as per Section 98-A of Chennai City Municipal Corporation Act, 1919, “(1) Before the council passes any
resolution imposing a tax or duty for the fi rst time, it shall direct the commissioner to publish a notice in the Offi cial Gazette and
in the local newspaper of its intention and fi x a reasonable period not being less than one month from the date of publication of
such notice in the Offi cial Gazette for submission of objections. The council may, after considering the objections, if any, received
within the period specifi ed, determine by resolution to levy the tax or duty. Such resolution shall specify the rate at which, the
date from which and the period of levy, if any, for which such tax or duty shall be levied.
(2) when the council shall have determined to levy any tax or duty for the fi rst time or at a new rate, the commissioner
shall forthwith publish a notice in the manner laid down in sub-section (1) specifying the date from which, the rate at which and
the period of levy, if any, for which such tax or duty shall be levied”
AND WHEREAS, the Council of Greater Chennai Corporation has resolved to notify General Revision of Property
Tax under section 98-A of Chennai City Municipal Corporation Act, 1919, as per recommendation of the Committee and
G.O.(Ms) No.53, Municipal Administration and Water Supply (MA.IV) Department, dated 30.03.2022 vide Resolution No. 39/2022,
dated 09.04.2022.
NOW, THEREFORE, in exercise of the powers conferred under 98-A of the Chennai City Municipal Corporation Act, 1919,
the Commissioner Greater Chennai Corporation notifi es the following provisions with respect to General Revision of Property
Tax in Chennai City:
General Revision will be carried out with eff ect from current half year of this fi nancial year (i.e.1/2022-23) by multiplying
the applicable ‘Increase Factor’ furnished in the table below with the existing Basic Street Rate respectively for each category.
Assessment category
GCC Core City
GCC added area
Increase Factor
Increase Factor
Residential upto 600 square feet
1.5
1.25
Residential from 601-1200 square feet
1.75
1.5
Residential from 1201-1800 square feet
2
1.75
Residential from 1801 square feet
2.5
2
Industry
2
1.75
Commercial
2.5
2
Special Category (Hotel, Kalayana Mandapam, Hospital,
Cinema Theatre) – Chennai City Only
To be taxed on par with
commercial properties
To be taxed on par with
commercial properties
Private Schools and colleges including self-fi nancing
courses/departments in Government Aided Institutions
2
1.75
TAMIL NADU GOVERNMENT GAZETTE EXTRAORDINARY
3
Special Type buildings
For Special Type buildings (Star Hotels and Lodging Houses, Kalyana Mandapams, Cinema Theaters and Hospitals), the
current methodology is based on the daily rentals of Hotels, Kalyana Mandapams and Hospitals and ticket rates of Cinema
Theaters. In order to avoid administrative complexity in such a methodology, unnecessary litigation and also based on several
representations from the concerned associations, the methodology of assessment for special category building in Chennai shall
be made same as non-residential category (i.e. based on area and the non residential Basic Street Rate of the locality). And
the Basic street rates applicable to non residential category shall be applied as such to Special Category properties in Chennai.
For assessees in this category who have cleared all arrears till 2/2021-22, the new methodology and rates shall be applied
from the current half- year(i.e.1/2022-23). For assessees in this category having unpaid property tax dues, the new methodology
and rates shall be applied from fi rst half-year of 2022-23 (i.e.1/2022-23), only after all dues have been settled by the concerned
assessees upto 2/2021-22.
Vacant Land Tax:
Currently, vacant land tax assessment is being assessed as per the Council Resolution No. 405/2009 dated
29-10-2009. Most of the assessments are at Rs. 0.50 per sq. ft. The vacant land tax shall now stand at Rs.1.00 per sq. ft. Further,
if two-third or more of the land is vacant, vacant land tax on such vacant land shall also be levied along with the property tax.
Private Educational Institutions including Self Finance Courses/ Departments in Government aided institutions:
The basic street rate for this category of properties shall be calculated at 1.6 times of the existing residential basic street
rate (i.e., the pre-revision residential basic street rate). On this, an increase factor of 2 in the case of Chennai core city and
1.75 in the case of added area shall be applied as per the table above to arrive at the revised basic street rate of this category
of properties.
Age rebate shall be applied as follows:
For the purpose of Age Rebate the date of assessment/re-assessment, whichever is later shall be taken as the crucial
date, to decide the quantum of Age Rebate.
Provided that, in case of re-assessment, if the date of eff ect of re-assessment is from the date prior to the re-assessment,
date of eff ect shall be used for deciding the quantum age of rebate.
The quantum of age rebate shall be as follows:
Age of Buildings
Rebate
Buildings assessed / re-assessed with eff ect period upto March 1997
10 Percent
Buildings assessed / re-assessed with eff ect period between April 1997 and March 2007
6 Percent
Buildings assessed / re-assessed with eff ect period between April 2007 and March 2017
3 Percent
Buildings assessed / re-assessed with eff ect period from April 2017
Nil
Floor Rates
The existing rate of property tax i.e.12.40 percent of annual value per- half year shall be the fl oor rate of property tax in
Chennai City.
Automatic Revision
Each year, the Basic Street Rate in force shall be increased by 6 percent or simple average of the growth rate of State’s
GSDP for the past 5 years, whichever is higher. (The eff ect of this annual increase shall be applicable from 1st April of each
year and will be applied to all properties, existing and new)
Subsequent to the implementation of general revision as envisaged herein, all new/modifi cations/revised property tax
assessment will be carried out as per the new BSR (i.e. Existing BSR x increased factor of the respective category) with eff ect
from 1st half year of 2022-23.
This notifi cation is published as per Section 98-A of Chennai City Municipal Corporation Act 1919. Any objections may be
addressed to the Principal Secretary/Commissioner, Greater Chennai Corporation, Ripon Buildings, Chennai – 600 003 within
30 days from the date of publication of the notifi cation. After 30 days from the date of this notifi cation, the Council shall decide
and fi nalize on the provisions contained herein.
GAGANDEEP SINGH BEDI,
Chennai-600 003,
Principal Secretary / Commissioner,
11th April 2022.
Greater Chennai Corporation.
