Karnataka to impose property taxes on unauthorised buildings, vacant sites

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BENGALURU, Karnataka: The Karnataka Municipalities and Certain Other Law (Amendment) Bill, 2024, was introduced in the State Legislative Assembly, Karnataka, to extend the property tax net and increase revenue for the Urban Local Bodies.

Municipalities and city corporations have the authority to impose and gather property taxes on every structure, empty plot of land, or both, even on buildings that have been constructed in violation of building regulations, on unauthorised layouts, on government-owned land, and on buildings that have been occupied without the issuance of an Occupancy Certificate in municipal and corporation areas.

For buildings or vacant sites, the property tax imposed would be double the amount due for the first year, and only the standard property tax would be levied for the following years.

However, the local body will not collect taxes on buildings that have been illegally constructed on government land, local body-owned land, or land owned and controlled by the government organisation.

Byrathi Suresh, Minister for Urban Development, Karnataka, tabled the Karnataka Municipalities and Certain Other Law (Amendment) Bill, 2024, to bring all assets under the purview of the urban local authorities under their network of financial resources.

The Bill amended the Karnataka Municipalities Act, of 1964 (Karnataka Act 22 of 1964), and the Karnataka Municipal Corporation Act, of 1976 (Karnataka Act 14 of 1977). It aims at extending the provisions of property tax to the premises and buildings in unauthorised settlements, other than government land, and to unauthorised buildings in official settlements as provided in the Bruhat Bengaluru Mahanagara Palike Act of 2020.

It further aims at providing necessary provisions regarding e-Asthi software and providing a penalty to the officers in case of non-compliance with the provisions of the Acts.

The Municipal Commissioner or chief officer is responsible for keeping a record of legal buildings or vacant lands as well as illegal buildings and vacant lands. According to the bill, in corporations, the Commissioner will maintain a record of legal buildings or vacant lands and illegal buildings and vacant lands.

Any officer or employee of the municipality who failed to collect property tax dues would be fined up to ₹50,000 in each case and would also be punished with simple imprisonment for 15 days.