Chapter XIII TAXES AND FEES

199. Levy of taxes, rates, etc., by Grama Panchayats. - (1) Every Grama Panchayat shall in such manner and subject to such exemptions as may be prescribed and not exceeding the maximum rate specified in Schedule IV levy tax u pon buildings and lands 1[based on capital value of the property]1 which are not subject to agricultural assessment, within the limits of the panchayat area: Provided that where an owner of the building or land has left the Panchayat area or cannot other wise be found, the occupier of such building or land shall be liable for the tax leviable on such owner. 1. Inser ted by Act 44 of 2015 w.e.f. 25.02.2016. (2) A Grama Panchayat may levy water rate for supply of water for drinking and other purposes. (3) A Grama Panchayat may also levy all or any of the following taxes and fee at such rates as the Grama panchayat may by bye -laws determine but not exceeding the maximum 146 specified in Schedule IV and in such manner and subject to such exemptions as may be presc ribed, namely: - (a) tax on entertainment other than cinematograph shows; (b) tax on vehicles, other than motor vehicles; 2[XXX]2 (d) pilgrim fee on person attending the jatras, festivals, etc., where necessary arrangements for water supply, health and sanitation are made by the Grama Panchayats; (e) market fee on persons who expose their goods for sale in any market place; (f) fee on the registration of cattle brought for sale in any market place; (g) fee on buses and taxies and auto -stands pr ovided adequate facilities for the travellers by the Grama panchayat; and (h) fee on grazing cattle in the grazing lands. 1[(i) tax and fee shall be as specified in schedule IV. (j) such other fees as may be prescribed. ]1 1. Inser ted b y Act 44 of 2015 w.e.f. 25.02.2016.

1[199A. Revision of taxes and rates,– The Gram Panchayat may revise the taxes and rates leviable under section 199, at least once in two years in respect of building and lands and at least on ce in a year on oth er items specified in schedule IV]1

2[199B. Issuing new Khata or PID to the properties. - (1) Notwithstanding anything contained in this Act, prior approval of the layout plan by the jurisdictional Planning A uthority shall be obtained by the Grama Panchayath or the authorities as designated by the Government by notification to issue new PID or khata for the building sites meant for the purposes of construction of building. (2) In case, the Grama Panchayath a reas falling under the jurisdiction of the Local Planning Area notified under the provisions of the Karnataka Town and Country Planning Act, 1961 (Karnataka Act 11 of 1963), the sanctioned layout plan shall be obtained from the jurisdictional planning auth ority under section 17 of the Karnataka Town and Country Planning Act, 1961 (Karnataka Act 11 of 1963) and no new PID or khata shall be issued without complying with the provisions of section 17 and sub -section (2 -E) of the section 17 of the Karnataka Tow n and Country Planning Act, 1961 (Karnataka Act 11 of 1963). (3) In case, the Grama Panchayath area is not covered under the jurisdiction of the Local Planning Area or the Planning Authority constituted under the Karnataka Town and Country Planning Act, 19 61 (Karnataka Act 11 of 1963), the sanctioned layout plan shall be obtained from the Director of Town and Country Planning or an officer not below the rank of 147 Assistant Director, Town and Country planning authorized by the Director under sub -section (2) of section 4-K of the Karnataka Town and Country Planning Act, 1961 (Karnataka Act 11 of 1963), and no new PID or khata shall be issued by the concerned Authority without complying with the provisions of the Karnataka Town and Country Planning Act, 1961 (Karnataka Act 11 of 1963): Provided that, if any officer or official or authority of the Grama Panchayath fails to comply with the said provisions of the Karnataka Town and Country Planning Act, 1961 (Karnataka Act 11 of 1963) and issues new PID or khata t o an unlawfully formed plot, the concerned officer or official or authority shall be liable for such penalty and punishment as may be prescribed.

revenue land

200. Recovery of taxes and other dues. - (1) When any tax, cess, rate or fee becomes due, Grama Panchayat shall, with the least practicable delay, cause to be presented to the person liable for the payment there of a bill for the amount due from him, specifying the date on or before which amount shall be paid. (2) If any person fails to pay any tax or fee or any other sum due to the Grama Panchayat under this Act or the rules or bye -laws on or before the specifie d date of payment the Grama Panchayat shall cause a notice of demand in the prescribed form to be served on the defaulter. (3) The presentation of every bill under sub -section (1) and the service of every notice of demand under sub -section (2), shall be e ffected by the 1[Panchayat Development Officer ]1 or an officer duly authorised by him in this behalf, - (a) by giving or tendering the bill or notice to the person to whom it is addressed; or (b) if such person is not found, by leaving the bill or notic e at his last known place of abode, if within the limits of the panchayat area or by giving or tendering the bill or notice to some adult member or servant of his family; or (c) if such person does not reside within the limits of the panchayat area and h is address elsewhere is known to the person directing the issue of the bill or notice, then by forwarding the bill or notice to such person by registered post, under cover bearing the said address; or (d) if none of the means aforesaid be available then by causing the bill or notice to be affixed on some conspicuous part of the building or land, if any, to which the bill or notice relates. (4) If the tax, rate, fee or other amounts for which a notice o f demand has been served is not paid within thirty days from the date of such service, the Grama Panchayat may recover the amount due along with a penalty of ten percent of the sum due, by the distraint and sale of the movable property of the defaulter in the prescribed manner. (5) Fees for, - (a) every distraint made under sub -section (4); (b) every notice of demand issued under sub -section (2); (c) the cost of maintaining any live -stock seized under sub -section (4), shall be chargeable at such rates as may be prescribed. (6) Notwithstanding anything contained in the foregoing sub -sections, any tax ,rate or fee payable to a Grama panchayat shall be recoverable as an arrears of land revenue. 1[(7) Recovery of taxes due to the Gram Panchayat exclud ing the arrears in sub-section (6), shall be primary obligation of the panchayats and where such recovery falls short of eighty percent of the tax recoverable the panchayat shall, investigate the reason for such shortfall and take necessary action ]1 1. Ins erted by Act 44 of 2015 w.e.f. 25.02.2016.

201. Appeal against assessment, etc. - Subject to such rules as may be prescribed, any person aggrieved by the assessment, levy or imposition of any tax, rate or fee under section 199 may appeal to the prescribed authority, whose decision shall be final.

202. Composition of taxes in factory areas. - (1) Subject to such rules as may be prescribed, when the owner of any industry or factory established in any panchayat area 149 provides sanitary and other amenities for the buildings and land used for the industry or as factory quarters for employees and for other purposes connected with the undertaking the Grama Panchayat may in lieu of the taxes, rates or fees, payable under this Act in respect of such buildings and lan ds receive such amount annually as may be agreed upon between the Grama panchayat and such owner. (2) Where no such agreement as is referred to in sub -section (1) can be reached, the matter may be referred to 1[the Chief Executive Officer]1 and 1[the C hief Executive Officer]1 may, after giving to the Grama panchayat and the owner concerned an opportunity of being heard, determine the amount payable by such owner and such determination shall be binding on the Grama Panchayat and such owner. 2[The Chief E xecutive Officer shall settle the matter within three months from the date of receipt of such reference and before making such reference such owners shall pay compulsorily fifty percent of the rates or tax or fee in question to the Grama Panchayath and th e Chief Executive Officer shall accept the reference only after such payment of fifty percent of rates or tax or fees]2 (3) The 1[Government]1 may by not ification direct that the provisions of sub -section (1) shall be applicable to such other establishments as may be specified in such notification.

203. Agency for collection. - The tax, rate, fee or oth er amount payable to the Grama Panchayat may be collected by such agency as the Panchayat may appoint in this behalf, provided that it shall be lawful for a Grama panchayat to lease the right to levy and collect any tax, rates, fees or other amount that ma y be imposed under this Act, by public auction or by tender, subject to the rules prescribed and the amount due under such lease shall be recoverable in the manner provided in this chapter. CHAPTER XIV LEVY OF CESSES ETC , AND GRANT OF FINANC IAL ASSISTANC E BY GOVERNMENT