The Madras High Court on Friday directed the State government to spell out when the property tax board, constituted under the chairmanship of the municipal administration secretary on January 25 this year, would issue guidelines to civic bodieson revision of tax.
Justice N. Kirubakaran raised the query and directed a government counsel to obtain instructions by March 21. They judge also wanted to know why the government had not publicised the enactment of the Tamil Nadu State Property Tax Board Act in 2013 as well as the constitution of the board early this year.
The court was enlightened about the law as well as the existence of the board by Coimbatore Corporation Commissioner K. Vijayakarthikeyan. He was summoned to explain to why the Corporation had not revised the property tax for years together .
The commissioner told the judge that the TNSPTB Act was enacted with a view to rationalising and maintaining uniformity in the rate of tax levied by various local bodies. As per Section 6 of the Act, the Board should review property tax assessment system, suggest suitable basis for valuation of properties and recommend modalities for periodical revision.
Though the Act was yet to be notified, a Government Order on the constitution of the property tax board with the municipal administration secretary as its chairperson had been issued on January 25. Since the Board was yet to issue guidelines on the revision of property tax, the civic bodies across the State were unable to take consequent action, he said.
In so far as the other details sought by the judge with respect to collection of property tax by Coimbatore Corporation were concerned, the official said the total demand towards property tax for the year 2017-18 was ₹151,87,41,294 and of that amount ₹111,94,45,987 had been collected as on February 27 this year.
When the current financial year began, there were arrears of property tax to the tune of ₹52,37,62,562. However, the Corporation managed to collect arrears to the tune of ₹10,83,06,988 during 2017-18. Therefore, the total outstanding property tax arrears, including the balance to be collected for current assessment years, was ₹81,47,50,881.
In so far as the current financial year was concerned, property tax had been collected from 74% of assessees and this was the highest rate of collection by any of the local bodies in the State, the commissioner claimed. He also said the last revision of property tax in Coimbatore done on April 1, 2008.
Justice Kirubakaran summoned the officer after the corporation counsel had cited financial crunch faced by the local body as a reason for non payment of dues to a contractor. However, after hearing the commissioner in person, the judge appreciated him for having done a good job on collection of taxes and asked him to settle the dispute with the contractor amicably.
