Niyati
The Greater Chennai Corporation (GCC) council on 27th September 2024, approved to raise property tax at a rate of 6%.
Timeline
The increased rate is expected to take effect from the October-March cycle, with the exact date to be notified by the state government.
Reaction on Increased Tax
The decision was primarily supported by DMK councillors, while CPI, CPI(M), VCK, and AIADMK councillors strongly opposed the hike who walked out in protest, arguing it will negatively impact the poor and working class, leading to a walk-out.
Tax Structure
The property tax is determined based on property type (commercial or residential) and location. According to Tamil Nadu Urban Local Body Rule 264(2), the tax must increase annually by either 6% or the average growth rate of the Gross State Domestic Product over the past five years, whichever is higher.
Recent Changes
This increase follows a property tax hike in 2022. In addition to the hike, the GCC implemented a new penalty and incentive structure in 2023:
Penalties: 1% interest per month for late payments.
Incentives: 5% discount for payments made within the first 30 days of the payment cycle (April 1-30 and October 1-30).
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