Property tax: Pvt colleges, schools to pay 60% surcharge
TIMES NEWS NETWORK 06.03.2018
Chennai: Greater Chennai Corporation on Monday fixed property tax rate for private school and colleges following the January 11 order by Tamil Nadu government which abolished exemption granted to these institutions.
The government amended the Chennai City Municipal Corporation Act, 1919 to abolish the exemption from paying property tax granted to private educational institutions in the city. Across Tamil Nadu, this change was effected in the municipal corporations of Madurai and Coimbatore besides other municipalities.
On Monday, the city corporation said that it will evaluate private educational institutions based on the existing slab applied to residential buildings in the locality. A 60% surcharge will be added to this amount during assessment. This means that in an area like T Nagar, where the lowest tax rate is ₹1 per sq.ft for houses, a school of 2,000 sq.ft area will have to pay at least ₹3,200 as property tax every six months. When TOI reported on the government abolishing the exemption, private school administrations hinted that this would result in school fees going up. Corporation officials told TOI that they do not expect a significant rise in the property tax collection figures due to this change.
TIMES NEWS NETWORK 06.03.2018
Chennai: Greater Chennai Corporation on Monday fixed property tax rate for private school and colleges following the January 11 order by Tamil Nadu government which abolished exemption granted to these institutions.
The government amended the Chennai City Municipal Corporation Act, 1919 to abolish the exemption from paying property tax granted to private educational institutions in the city. Across Tamil Nadu, this change was effected in the municipal corporations of Madurai and Coimbatore besides other municipalities.
On Monday, the city corporation said that it will evaluate private educational institutions based on the existing slab applied to residential buildings in the locality. A 60% surcharge will be added to this amount during assessment. This means that in an area like T Nagar, where the lowest tax rate is ₹1 per sq.ft for houses, a school of 2,000 sq.ft area will have to pay at least ₹3,200 as property tax every six months. When TOI reported on the government abolishing the exemption, private school administrations hinted that this would result in school fees going up. Corporation officials told TOI that they do not expect a significant rise in the property tax collection figures due to this change.
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