Property Tax is a local tax imposed on the owner of a real estate property annually or semi-annually by the local government bodies such as the Panchayat or the Municipal Corporation. Also called the House Tax, this amount is assessed by the local governing body depending on the size of the property, the area of the building, the construction, the location, etc. The tax is also inclusive of taxes on resources like light, water, and drainage facilities. The tax money from property owners then goes to the maintenance and bettering of public services like roads, schools, sanitation, and sewage facilities. Residential buildings, office buildings, shops, flats, factory buildings, and godowns are the types of properties on which this tax is imposed.
The following are the factors that affect property tax:
- The age of the building
- The utilization (residential or commercial)
- The basic rate in the locality
- The plinth area of the building (total square feet area plus the walls, the stairs, terrace, portico)
- The ownership (owner or tenant- it is the owner of the property who is liable to pay the tax)
How is Property Tax Calculated in Chennai?
The Greater Corporation of Chennai is the authority in charge of collecting property tax in Chennai. It follows the concept of Reasonable Letting Value (RLV) to estimate property tax, according to which, the annual rent of the property is estimated according to the basic rate per square feet. This basic rate is determined by the corporation.
Monthly RLV = Plinth area x Basic Rate/ sq. ft
Annual Value = Monthly Rental Value x 10.92, where 10.92 is a fixed common value fixed by the corporation to calculate the annual value of the building.
The Annual Value also depends on the size of the property, its location, amenities, and proximity to civic amenities.
The Greater Chennai Corporation’s website has an online property tax calculator that makes your property tax calculation easy. By filling in details such as the type of ownership, the name of the street, ward number, etc, your property tax can be computed easily.
Assessment of your Property Tax
Your property tax can be assessed both offline and online. Follow these steps to assess your tax offline:
- Submit the application form along with your registered documents and the last receipt of property tax, if any, at a Tamilnadu Arasu Cable TV (TACTV) counter*.
- You will then receive an SMS acknowledging your request.
- The Assessor then assesses your application and measures your building as part of the field verification. He or she then submits the proposal for tax assessment.
- The approval officer then conducts the field verification after which the proposal is handed over to the Assessment Committee.
- The proposal is verified by the Assessment Committee.
- Upon approval, you receive your assessment notice as well as an SMS.
Your tax assessment application can be submitted online through the online citizen portal. All you have to do is create a user ID and password and fill in details such as the location of the property, your name, door number, contact number and your complete address.
Where to Pay Property Tax in Chennai?