Municipal Minister moves Bill that enables urban local bodies to levy education tax

The Tamil Nadu government on Thursday tabled a Bill in the Assembly to enable urban local bodies in the State to levy and collect education tax at 5% of the annual value of the property.

The Tamil Nadu government on Thursday tabled a Bill in the Assembly to enable urban local bodies in the State to levy and collect education tax at 5% of the annual value of the property.

They may levy education tax within its area at a rate not exceeding 5% of the annual value of all buildings, telecommunication towers and storage structures built on or attached to land that the council may determine and collect such tax, it said.

The Tamil Nadu Urban Local Bodies Act, 1998, was suspended in 2000 but was updated and revived as the Tamil Nadu Urban Local Bodies (Amendment) Act, 2022. The Tamil Nadu Urban Local Bodies Rules, 2023, were framed and came into force from April 13.

The Bill moved by Minister for Municipal Administration and Water Supply K.N. Nehru said the education tax was levied on the annual value of property under the Tamil Nadu District Municipalities Act, 1920, and the Corporation Acts, which were repealed by the 1998 Act.

“On the same analogy, the government has decided to enable the municipal corporations, municipal councils and town panchayats to levy and collect education tax on the annual value of the property and to amend the Tamil Nadu Urban Local Bodies Act, 1998, suitably for the purpose,” it said.