Tamil Nadu Introduces Uniform Property Name Transfer Fee Across Urban Local Bodies

The Government of Tamil Nadu has taken a decisive step towards simplifying property-related procedures by introducing a uniform property tax name transfer fee across urban local bodies. The move applies to all municipal corporations and municipalities in the state and is aimed at ending inconsistent charges and long delays faced by property owners.

As per the revised structure, a name transfer fee of Rs 500 has been fixed for residential properties, while non-residential properties will attract a fee of Rs 1,000. The government has directed local bodies to implement the revised charges with immediate effect and place the decision before their respective councils for formal record.

A key clarification issued through the circular is that no separate name transfer fee should be collected for water supply or underground sewerage assessment numbers. In several municipalities, such charges were being levied despite the absence of statutory backing. Under the new system, water and sewerage connections linked to a property must be transferred automatically to the new owner at the time of property tax mutation, using the same application process.

The government has also tightened timelines for processing applications. Municipal authorities have been instructed to complete name transfers within the period specified under the Tamil Nadu Urban Local Bodies Rules, 2023, and in accordance with the Citizens’ Charter. Officials can collect only the notified name transfer fee and any pending property tax dues up to the completed half-year before approving the transfer.

To strengthen service delivery and billing accuracy, commissioners have been asked to fast-track the mapping of water and sewerage assessment numbers with existing property tax records. This data integration exercise is expected to reduce errors and improve coordination across departments.

In a further push towards digitisation, the state has enabled online submission and payment of property name transfer applications through the Urban Tax Information System. The platform is designed to minimise manual intervention, improve audit trails, and enhance transparency.

Regional directors of municipal administration will oversee implementation and ensure uniform compliance across urban local bodies. The reform is expected to bring long-term relief to property owners while improving administrative efficiency.