Inn and PG Owners Association Urges Tennessee Government to Treat Inns as Residential Buildings for Property Tax Purposes

Hostel and PG owners in Tamil Nadu seek equal treatmentHostel and PG owners in Tamil Nadu seek equal treatment Members of the Tamil Nadu IT Hostel and the Paying Guest (PG) Owners Welfare Association have appealed to the state government to treat hostels and PGs on par with residential properties in terms of property tax and electricity tariff. At a press conference held in Chennai on Monday, the members expressed gratitude to the government for exempting hotels and PGs from the Goods and Services Tax (GST). They also acknowledged the efforts of Chief Minister MK Stalin and Minister for Social Welfare and Women Empowerment Geetha Jeevan in streamlining the permit process for hostels and PGs. However, they expressed concerns over the disparity in property tax collection. According to the members, the Tennessee State Gazette of February 2019 classifies buildings used as hostels as residential, and the TN Combined Development and Building Rules of 2019 stipulate that property tax for such buildings shall be levied as per residential rates. The association members questioned why the government is levying property tax on hostels and PGs. They urged the government to step in and ensure equitable treatment of hostels and PGs in terms of property taxes and electricity rates. They pointed out that these facilities provide affordable housing to students, professionals and other members of the community who need temporary accommodation.

CHENNAI: Members of the Tamil Nadu Hostels and Paying House (PG) Welfare Association have urged the state government to treat hostels and PGs on par with residential buildings in terms of property tax and electricity tariff.

In this regard, the members held a press conference in the city on Monday and also wrote a letter to Prime Minister MK Stalin.

Addressing the media at the press conference, the members thanked the government for exempting hotels and PGs from Goods and Services Tax (GST), keeping in mind the needs of hotel/PG owners in the country.

The members also thanked CM Stalin and Minister for Social Welfare and Women Empowerment Geetha Jeevan for announcing that the procedure for obtaining permits for hostels and PGs will be simplified.

Meanwhile, members pointed out that the February 2019 Tennessee State Gazette lists buildings used as inns as residential.

“Furthermore, Tennessee’s 2019 Combined Building and Development Rules state that property tax for these buildings can only be collected on residential buildings. But why is the government collecting property tax on commercial buildings?” the member asked.

Members of Tamil Nadu IT Hostel and Paying House Owners (PG) Welfare Association are urging the government to intervene and take necessary steps.