A property tax is an ad valorem tax on the value of a property. The tax is levied by the governing authority of the jurisdiction in which the property is located. This can be a national government, a federated state, a county or other geographical region, or a municipality.

Water tax is a tax levied on the use of water in buildings and leased premises. The purpose of water taxes is to encourage households and companies to use water more sparingly. In Tamil Nadu, the Chennai Metropolitan Water Supply and Sewerage Act of 1978 (Act 28 of 1978) regulates water tax. The tax is based on the assessed annual value of a property, which is determined under section 35 of the Act. The water tax rate in Chennai is 1.5% of the assessed annual value. There is also a 2% monthly penalty for late payment.