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Coimbatore reinitiates property tax collection under revised regime

By Rishabh Chamoli | 2022-10-21

Coimbatore Municipal Corporation has reinitiated the process of collecting property tax from the newly constructed buildings. Based on the State governments instructions, the civic body revised the property tax at the beginning of the current financial year.

After nearly a gap of six months, Coimbatore Municipal Corporation has started receiving applications for the revised property tax from the newly constructed buildings built after July 1, 2022. The process was initially put on hold for new buildings in April 2022 as the zone wise categorisation was underway.

What is the new Coimbatore property tax regime?
Coimbatore Municipal Corporation introduced a new property tax regime on July 30, 2022. Under this new resolution, buildings constructed after July 1, 2022 would come under zone based property taxation regime. The areas in 100 wards of the Coimbatore Corporation are classified into four zones and a base price per sq ft would be fixed only for these buildings.

The taxes would be fixed in proportion to the base tax decided as per zone and the purpose of usage of the building. This system does not include buildings that were constructed before July 1, 2022.

How the zones are divided?
As per the classification, Zone A includes bus routes whereas main roads fall into Zone B. Other lanes are classified into Zone C. Further, slums and underdeveloped areas are categorised into Zone D. The buildings within a particular zone attract the same base tax, ranging from Zone A being the highest and Zone D being the lowest. While the corporation collects property tax under 16 slabs based on the areas, the zoning was done to simplify taxes for newly constructed buildings.

While it started collecting the revised property taxes for the existing buildings in July 2022, it could not initiate the process for new buildings as the process to classify them into A, B, C, and D categories was still underway. According to the official data, the civic body has received around 50 petitions seeking reclassifications and releasing the list of streets under each zone. Besides, the rates adopted by the council for all four categories are under modification and will be released soon.