Madras HC dismisses petitions challenging property tax hike

Dismissing several petitions and consequent GO challenging the recent hike in property tax in Chennai and Coimbatore, the Madras High Court has directed that the amendments recommended by the councils be implemented and effective from 1st April 2023. Both corporations have been directed to ensure that their websites are in working order and adequate grievance mechanisms are in place to enable property tax assesses to seek clarification regarding any aspect of the property tax assessments.

The decision to raise property tax rates was initiated by a need for augmented funds. Additionally, a mandate cast by the 15th central finance commission for availing grants and entry level conditions for receiving funds under various schemes offered by the central government propelled the experts to suggest a hike in property tax rates. Based on these recommendations, a notification was issued for implementation of general revision of property tax within the limits of Chennai and Coimbatore Corporations with effect from the first half of the financial year 2023-24.

As a result of this notification, several petitioners approached the court to contest the decision, stating that it was beyond the purview of the Central Finance Commission to lay down mandates of this nature upon the state, more so when they contradict the federal structure and constitutional scheme. They further added claimed a dire need for the state to intervene in such matters. However, the court has upheld the decision stating that the GO is erroneous and illegal on multiple grounds.

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Madras HC dismisses petitions challenging property tax hike

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