The Times of India 16.03.2013
What's in a name? A new tax
COIMBATORE: In an attempt
to augment its revenue, the city municipal corporation in the budget has
proposed a name transfer fee. The transfer fee will be applicable only
to property tax assessment of buildings and vacant lands in the corporation limits which undergo a change of ownership.
At the moment, the corporation does not have any additional fee for change of ownership except the nominal application form fee which has to be submitted after filling up the details of the new owner after completing the formalities at the registration department. "We have proposed it in our budget as an option to increase the revenue of the local body. The new budget has also not included any fresh tax and the name transfer fee will not be a huge amount," said S Sivarasu, deputy commissioner, Coimbatore Municipal Corporation.
According to the corporation, there were around Rs 4,00,000 property tax assessment and vacant land assessment in the corporation limits. They have also identified that a minimum additional revenue of Rs 2 crore could be generated through the name transfer fee which as per the budget announcement would be Rs 200 or 0.1 per cent of the property value or whichever is higher at the time of application. However, a few city residents claimed that with the government hiking the registration fee recently, the corporation's additional fee will be an added burden. They also raised apprehension about the possibility of the corporation introducing the fee at the moment and later hiking it as per their revenue requirements. "Though they have not openly taxed the public in the budget, the corporation could have avoided the name transfer fee," said S Kanagasundaram, former president, Association of Licensed Building Surveyors.
However, sources in corporation indicated that the corporation might make some modifications in the name transfer fee rates at the council meeting in the coming week. The civic body might reframe the name transfer fee tariff and charge 0.05% for property whose value is below Rs 50 lakh and 0.01% for those with a higher market rate. The corporation has announced that it will raise the rent for its commercial complexes. It had already increased the rent for those complexes that completed an allotment period of nine years.
At the moment, the corporation does not have any additional fee for change of ownership except the nominal application form fee which has to be submitted after filling up the details of the new owner after completing the formalities at the registration department. "We have proposed it in our budget as an option to increase the revenue of the local body. The new budget has also not included any fresh tax and the name transfer fee will not be a huge amount," said S Sivarasu, deputy commissioner, Coimbatore Municipal Corporation.
According to the corporation, there were around Rs 4,00,000 property tax assessment and vacant land assessment in the corporation limits. They have also identified that a minimum additional revenue of Rs 2 crore could be generated through the name transfer fee which as per the budget announcement would be Rs 200 or 0.1 per cent of the property value or whichever is higher at the time of application. However, a few city residents claimed that with the government hiking the registration fee recently, the corporation's additional fee will be an added burden. They also raised apprehension about the possibility of the corporation introducing the fee at the moment and later hiking it as per their revenue requirements. "Though they have not openly taxed the public in the budget, the corporation could have avoided the name transfer fee," said S Kanagasundaram, former president, Association of Licensed Building Surveyors.
However, sources in corporation indicated that the corporation might make some modifications in the name transfer fee rates at the council meeting in the coming week. The civic body might reframe the name transfer fee tariff and charge 0.05% for property whose value is below Rs 50 lakh and 0.01% for those with a higher market rate. The corporation has announced that it will raise the rent for its commercial complexes. It had already increased the rent for those complexes that completed an allotment period of nine years.
