TN: GCC Eyes Under-Assessed, Wrongly-Assessed Properties for Tax Revision
GCC Commissioner, Dr. G.S. Sameeran, said the revised assessments were based on data gathered through GIS and satellite imagery, other government records and self-declarations submitted by property owners
CHENNAI: Cash-strapped Greater Chennai Corporation (GCC) has stepped up efforts to improve its property tax collections by revising assessments of properties where owners had allegedly failed to declare additional built-up areas, extensions or other deviations.
The Corporation on Wednesday clarified that revised demand notices being issued to certain property owners and commercial establishments were linked to corrections in properties that had been under-assessed or wrongly-assessed earlier.
GCC Commissioner, Dr. G.S. Sameeran, said the revised assessments were based on data gathered through GIS and satellite imagery, other government records and self-declarations submitted by property owners.
The move assumes significance at a time when the civic body is grappling with severe financial strain. With expenditure pressures rising and its own-source revenues under pressure, the Corporation has been looking at ways to plug leakages and widen its revenue base. Identifying properties that have been under-assessed or incorrectly assessed is part of this effort.
Officials have been comparing existing property tax assessments with available digital and government data to identify discrepancies in property extent and built-up area. Property owners who had not declared extensions or changes in their properties could consequently face revised assessments and higher tax demands, officials indicated.
The GCC, however, stressed that such revisions do not amount to a general property tax hike.
“Property tax has not been increased in the Greater Chennai Corporation,” the Commissioner said, urging residents not to believe reports claiming that the Corporation had raised property tax rates across the city.
At the same time, property owners who receive revised assessment notices have been given an opportunity to challenge them. They can file an appeal before the regional deputy commissioner within 15 days of receiving the notice. The Corporation has said such appeals will be disposed of within 30 days.
The exercise is expected to help GCC identify additional taxable properties and correct gaps in its existing assessment database. For a civic body facing a widening gap between its revenue and expenditure, improving property tax compliance could provide an important boost to its recurring revenues without formally increasing the tax rate.
The Corporation has, therefore, sought to draw a distinction between a tax-rate hike and reassessment of properties that were previously under-assessed. While there is no blanket increase in the property tax rate, owners whose properties were not correctly declared or assessed could see their tax liability rise following the reassessment.
A tax expert said the Corporation’s exercise should be viewed as a revenue mobilisation and compliance measure rather than a tax-rate hike. “If a property owner has added built-up area or made structural changes without updating the assessment, reassessing the property based on verified data is legitimate. However, the Corporation must ensure that the process is transparent and that property owners are given adequate opportunity to challenge incorrect assessments. At a time when GCC is facing financial constraints, improving compliance and plugging revenue leakages can strengthen its finances without imposing a blanket tax increase,” the expert said.