Chapter X TAXATION

ENUMERATION OF TAXES orders of Government, a corporation shall,-

¹ Omitted by Act 32 of 2003 w.e.f. 20.8.2003.

1[(a) [xxx] ] (b)

1[at rates not exceeding those specified in this Act] levy any one or more of the following taxes

¹ Substituted by Act 32 of 2003 w.e.f. 20.8.2003.

² Inserted by Act 30 of 2021 w.e.f. 07.10.2021.

2[or fee] :-

1. (i) a tax on 1[buildings or vacant land or both] situated within the city (hereinafter referred to as the property tax); 1[(ii) (iii)x x x] 1[(iv) x x x] 1[(v) xxx ]
2. (vi) a tax 1[or fee] on advertisement;
3. (vii) a duty on certain transfers of property in the shape of an additional stamp duty; 1[(viii) x x x] 1[(ix) x x x] 1[Proviso x x x] 1[103A. xxx] ]

¹ Substituted by Act 32 of 2003 w.e.f. 19.11.2001.

¹ Omitted by Act 35 of 1994 w.e.f. 1.6.1994.

¹ Omitted by Act 21 of 1979 w.e.f. 31.3.1979.

¹ Omitted by Act 32 of 2003 w.e.f. 20.8.2003.

¹ Inserted by Act 30 of 2021 w.e.f. 07.10.2021.

¹ Omitted by Act 35 of 1994 w.e.f. 1.6.1994.

¹ Omitted by Act 32 of 2003 w.e.f. 20.8.2003.

¹ Omitted by Act 35 of 1994 w.e.f. 1.6.1994.

¹ Omitted by Act 32 of 2003 w.e.f. 16.6.2003.

1. (1) Notwith-standing anything contained in section 19 of the Karnataka Motor Vehicles Taxation Act 1957 (Karnataka Act 35 of 1957) the Corporation may in addition to the tax levied under that Act, levy and collect an infrastructure cess, at such rate not exceeding five hundred rupees per annum as may be prescribed on every motor vehicle suitable for the use on roads within the city and different rates may be prescribed in respect of different classes of motor vehicles. Explanation.- For the purpose of this section “motor vehicle” shall have the same meaning assigned to it in the Motor Vehicles Act, 1988 (Central Act 59 of 1988).
2. (2) The Corporation may in addition to property tax levied under section 103, levy a Solid Waste Management cess at such rate not exceeding one thousand rupees per month as may be prescribed, on every owner or occupier of buildings or lands or both in the city, for the purpose of collection, transportation and disposal of solid waste and different rates may be prescribed in respect of different classes of lands or buildings or in different areas. Explanation.- For the purposes of this section solid waste., includes filth offensive matter, rubbish sewage, trade affluent, trade refuse, waste from hospitals and any other waste which is detrimental to public health.
3. (3) The cess levied under sub-sections (1) and (2) shall be assessed and collected in such manner as may be prescribed.
4. (4) Notwithstanding anything contained in sections 61A, 62 and 444,

such cess, appeal to the prescribed authority whose decision shall be final.

1. (5) The prescribed authority may, after giving a reasonable opportunity of being heard to the appellant and the Corporation, pass such order as it deems fit.
2. (6) Subject to such terms and conditions as may be provided in the bye- laws, the cess payable to the Corporation under this section may be collected by such agency as the corporation may appoint in this behalf.]

¹ Inserted by Act 31 of 2001 w.e.f. 19.11. 2001.

(1) There shall be levied and collected an Urban Transport Cess at such rates not more than two percent on the property tax levied and collected under section 103 or 108A of this Act and which shall be rounded off to nearest rupee. (2) Nothing in this section shall affect the operation of the provisions of any other Act and the levy of Urban Transport Cess under this Act is in addition to, and not in lieu of, any other tax or cess that may be levied under any other law for the time being in force. (3) All money collected in the form of Urban Transport Cess shall be credited to the Urban Transport Fund created under section 149A. (4) The State Government may by rules prescribe, the manner of collection, maintenance and application of the Urban Transport Fund.] dated:7.10.2013. 1[104. xxx] ] 1[105. xxx] 1. Inserted by Act 31 of 2012 w.e.f. 7.10.2013 by notification No.UDD 99 PRJ 2013, 1. Omitted by Act 32 of 2003 w.e.f. 20.8.2003. 1. Omitted by Act 32 of 2003 w.e.f. 20.8.2003.

1. (2) Nothing in this section shall affect the operation of the provisions of any other Act and the levy of Urban Transport Cess under this Act is in addition to, and not in lieu of, any other tax or cess that may be levied under any other law for the time being in force.
2. (3) All money collected in the form of Urban Transport Cess shall be credited to the Urban Transport Fund created under section 149A.
3. (4) The State Government may by rules prescribe, the manner of collection, maintenance and application of the Urban Transport Fund.] dated:7.10.2013. 1[104. xxx] ] 1[105. xxx]

¹ Inserted by Act 31 of 2012 w.e.f. 7.10.2013 by notification No.UDD 99 PRJ 2013,

¹ Omitted by Act 32 of 2003 w.e.f. 20.8.2003.

¹ Omitted by Act 32 of 2003 w.e.f. 20.8.2003.

A corporation shall by a resolution passed at a general meeting levy any tax specified in section 103 and in such resolution specify the classes of persons or properties which shall be made liable and the amount or rate at which the tax shall be levied. When such a resolution has been passed the corporation shall publish a notice of such resolution in the notice board of its office and by advertisement in local newspapers. The publication of such notice shall be conclusive evidence that the tax has been imposed in accordance with the provisions of this Act and the rules made thereunder.] 1. Section 106 substituted by Act 32 of 2003 w.e.f. 20.8.2003.

1. Section 106 substituted by Act 32 of 2003 w.e.f. 20.8.2003.

The corporation may, except as otherwise provided in clause (b) of the proviso to section 146 at any time for sufficient reason suspend, modify or abolish any existing tax.

1. (2) The provisions of this Chapter relating to the imposition of taxes shall apply so far may be to the suspension, modification or abolition of any tax.

(1) Unless exempted under this Act or any other law, property tax shall be levied every year on all

¹ For Sections 108, and 109, sections 108, 109, and 109A Substituted w.e.f.

² Substituted by Act 32 of 2003 w.e.f. 20.8.2003.

2[buildings or vacant lands or both] situated within the city. 19.11.2001.

1[(2) The property tax shall be levied in case of,-

1. (a) commercial building at such percentage not being less than 0.5 per cent (rupees five per thousand) 2[and not more than three percent] of taxable capital value of the building;
2. (b) residential building and buildings other than commercial building, at such percentage not being less than

3[0.2 per cent (rupees two per thousand)] and not more than

3[

2[1.5 percent (rupees fifteen per thousand)] ] of taxable capital value of the building;

1. (c) vacant land, 3[at such percentage not being less than 0.2 percent (rupees two per thousand) and not more than 0.5 percent (rupees five per thousand) of taxable capital value of land] 4[(i) XXX
   • (ii) XXX
   • (iii) XXX] ] 5[(d) industrial building at such percentage not being less than seventy percent of rate levied in case of commercial building in accordance with clause (a): Provided that, the percentage so fixed shall not be less than the rate levied in case of residential buildings and buildings other than commercial in accordance with clause (b).] 1. Sub-section (2) sub-stituted by Act 32 of 2003 Clauses (a) and (b) deemed to have come in to force on 16.6.2003 and clause (c) w.e.f. 19.11.2001.

² Substituted by Act 19 of 2012 w.e.f. 28.4.2012.

3. For the figures, words and brackets “0.3 percent (rupees three per thousand)” and

⁴ Omitted by Act 04 of 2021, The previous text was,

“one percent (rupees ten per thousand)” shall respectively be Substituted by Act 04 of 2021 w.e.f. 19.01.2021. “

1[(i) measuring not above one thousand square meters, at not less than 0.1 per cent (rupees one hundred per lakh) and not more than 0.5 percent (rupees five hundred per lakh) of taxable capital value of land,

1. (ii) measuring above one thousand square meters but not above four thousand square meters, at not less than 0.025 per cent (rupees twenty five per lakh) and not more than 0.1 percent (rupees one hundred per lakh) of taxable capital value of land,
2. (iii) measuring above four thousand square meters, at not less that 0.01 per cent (rupees ten per lakh) and not more than 0.1 percent (rupees one hundred per lakh) of taxable capital value of land.] ”

⁵ Inserted by Act 02 of 2022 w.e.f.13.01.2022.

1. (3) Subject to the minimum and the maximum, rates specified in sub- section (2), the corporation may, fix the property tax at such percentage of the taxable capital value of the buildings or 1[vacant lands or both] having regard to location, type of construction of the building, nature of use to which the 1[vacant land] or building is put, area of the 1[vacant land] , plinth area of the building, age of the building and such other criteria as may be prescribed: Provided that the percentage so fixed may be different in different areas and for different classes of buildings and lands. 3[ 2[Provided further that, the vacant land appurtenant to the building, up to one thousand square feet shall be exempted and more than one thousand square feet shall be levied with property tax on vacant land in accordance with clause (c) of sub-section (2).] ] 1.4.2005.

¹ Substituted by Act 32 of 2003 w.e.f. 19.11.2001.

² Inserted by Act 32 of 2003 w.e.f. 19.11.2001 and substituted by Act 5 of 2005 w.e.f.

³ Substituted for the words” Provided further that the land appurtenant to a building shall be

exempted from levy of Property Tax.”, by Act 04 of 2021 w.e.f. 19.01.2021.

¹ Omitted by Act 32 of 2003 w.e.f. 16.6.2003.

1[Explanation: xxx]

Bangalore Mahanagara Palike.- (1) Notwithstanding anything contrary contained in this Act, subject to such exemptions provided under this Act and such rules as may be prescribed, the property tax of all buildings or vacant lands or both situated within the city of Bruhath Bangalore Mahanagara Palike area shall be levied every year in the following manner.

1. (2) The property tax shall be levied by the Bruhath Bangalore Mahanagara Palike by resolution passed as specified in section 106 at such percentage not being less than 20 percent and not more than 25 percent of the taxable annual value of a building, vacant land or both. The taxable annual value of a building, vacant land or both shall be calculated by multiplying the corresponding “unit area value” with the total built-up area of a building, vacant land or both for ten months, minus depreciation at such rate, as may be prescribed, depending on the age of a building. Explanation.- For the purpose of this section, “Unit Area Value” means an average rate of expected returns from the property per sq.ft., per month

determined by the Commissioner, Bruhath Bangalore Mahanagara Palike on the basis of the average market rate determined through mass appraisal method or real estate market information or any other reliable source or combination of these sources that he may considers it as sufficient and reasonable having regard to the location, type of construction of the building, nature of use to which the vacant land or building is put, area of the vacant land, built-up area of the building, age of the building, parking area of vehicles in non-residential building where it is charged and such other criteria as may be prescribed. Different rates may be determined for different area or street by classifying into zones, different nature of use to which the vacant land or building is put and for different class of buildings and vacant lands: Provided that no such “unit area value” shall come into force unless it is previously published in the official Gazette for the information of the persons likely to be affected and an opportunity is provided to make representation or suggestions, if any, in this regard: Provided further that the land appurtenant to a building to the extent not exceeding thrice the area occupied by such building shall be exempted from the property tax: Provided also that subject to such condition and in such circumstances as may be notified, the Commissioner, Bruhath Bangalore Mahanagara Palike, may, in lieu of the tax under sub-section (2), fix any lumpsum amount as annual tax, irrespective of zonal classification, in respect of,-

1. (a) a built-up area having less than 300 sq.ft., in a slum area declared as such by the Karnataka Slum Clearance Board or the Commissioner, Bruhath Bangalore Mahanagara Palike; and
2. (b) an area used as parking area in a non-residential building and being charged for its use by the owner or the occupier.
3. (c) any other class of building or structure as he deems fit.

1. (3) The Bruhath Bangalore Mahanagara Palike may levy and collect the property tax from every building, vacant land or both including a building constructed in violation of the provisions of building byelaw or in an unauthorized layout or in a revenue land or from a building occupied without issuance of occupancy or completion certificate except the building constructed illegally in Government land, land belonging to any local body, any statutory body or an organization owned or controlled by the Government. The property tax collected from such building shall be maintained in a separate register: Provided that levy and collection of property tax under this sub-section from such building does not confer any right to regularise violation made, or title, ownership or legal status to such building. Such buildings shall always be liable for any action for violation of law in accordance with the provisions of this Act or any other law. 2[Provided further that, whoever constructs or reconstructs any building or any part of the building without obtaining permission under this Act or in contravention of any of the condition specified in such permission granted under this Act or any rule or any byelaw made there under, shall be liable to pay every year a penalty of an additional amount in respect of such floor area or deviation constructed in excess of the permitted area or in violation of the permission granted equal to the property tax leviable on such floor area or deviation of the building levied under sub-section (3), so long as it remains as unlawful construction and without prejudice to any proceedings which may be instituted against him in respect of such unlawful construction:]
2. (4) The property tax payable shall be reduced by fifty percent in respect

of a self occupied building used for residential purpose and such class of self occupied non-residential building as may be notified by the State Government on the recommendation of the Corporation.

1. (5) The provisions contained in sections 107, 110, 111, 112, sub- sections (5), (6) and (7) of section 112A, and sections 112B, 112D and 113 to the extent they are not inconsistent to the provisions of this section shall mutatis mutandis apply to the Bruhath Bangalore Mahanagara Palike: Provided that the State Government may prescribe separate procedure, form or register in respect of property assessed by the Bruhath Bangalore Mahanagara Palike. A different register may be prescribed for different class of property assessed for tax.
2. (6) The person primarily liable to pay the property tax, shall pay the tax in two equal instalments. The first being before 30 th May and second by 29 th November of each financial year. However, the owner or occupier or person primarily liable to pay property tax may choose to pay in one instalment: Provided that for the year 2008-09, the first instalment shall be paid within sixty days from the date of commencement of the Karnataka Municipal

Corporations (Amendment) Act, 2009 and the second instalment shall be paid within thirty days thereafter: Provided further that if the owner or occupier who is liable to pay property tax files return and also pays property tax for the whole year, within one month from the date of commencement of each year or within one month or within one month from the date of commencement of the Karnataka Municipal Corporations (Amendment) Act, 2009 for the year 2008-09, he shall be allowed a rebate of five per cent on the tax payable by him: Provided also that the State Government may on the recommendation of the Corporation by notification extend the time limit for payment of property tax without penalty and for the benefit of 5% rebate in respect of the financial year 2008-09 and 2009-2010. Provided also that subject to random scrutiny as may be prescribed, the tax return filed for the first time during 2008-09 shall form the base for payment of tax applicable during each block year.

1. (7) Before any owner or occupier submits any return under sub-section (8), he shall pay in advance half-yearly tax calculated or the full amount of the property tax payable by him for the year on the basis of such return declared by him as being true and complete.
2. (8) Notwithstanding anything contained in sub-section (1) of section 112A, the State Government may prescribe the form and the manner in which every owner or occupier who is liable to pay the property tax under this Act shall submit a return every year to the Commissioner, Bruhath Bangalore Mahanagara Palike or to the officer or agency authorized by him in this behalf.
3. (9) In order to facilitate filing of return by an owner or occupier of any building or vacant land or both and assessment of property tax under this section, the Commissioner shall from time to time issue guidelines for determining the unit area value and property tax payable thereon.
4. (10) Every return filed by a owner or occupier shall be deemed to have been assessed to tax except in cases where the Commissioner or authorised officer may take-up or authorise subordinate officers the cases for random scrutiny of the returns filed in the manner prescribed. Provided that Commissioner may suo moto or otherwise has reason to believe that there is an evasion of tax by the owner or occupier, he may cause inspection of such building and assess the tax.
5. (11) For the purpose of random scrutiny of the return filed or in cases where returns are not filed as required under sub-section (8) in respect of any buildings or lands or both, the Commissioner or any person authorized by him in this behalf may enter, inspect, survey or measure any land or building after giving notice to the owner or occupier and the owner or occupier shall be bound to furnish necessary information required and based on such inspection and information collected, he shall assess the property tax subject to sub- section (5) and send a copy of the order of assessment to the owner or occupier concerned. Such entry into and upon any building or vacant land shall be made between sunrise and sunset.
6. (12) If the occupier of the property, refuses to allow the authorised officer to enter to inspect the premises, the officer after giving reasonable opportunity shall record the refusal and shall proceed to assess the property to the best of his judgement: Provided that in the case of buildings used as human dwelling due regard shall be paid to the social and religious customs of the occupiers and no apartment in the actual occupancy of a woman shall be entered until she has been informed that she is at liberty to withdraw and every reasonable facility has been afforded to her for withdrawing.
7. (13) Upon random scrutiny, if the authorized officer has reasons to believe that any return furnished, which is deemed as assessed, is incorrect or has been underassessed resulting in evasion of property tax,-
   • (a) may, on the basis of information available on record and after physical inspection proceed to re-assess the property, in the manner provided under this section;
   • (b) if the tax-reassessed is more than 5 percent than the tax remitted alongwith the returns, the evaded tax shall be payable together with a penalty not less than twice the tax so evaded payable alongwith interest for the difference in tax paid and payable calculated at 24 percent per annum;
   • (c) if upon inspection and re-assessment as made under this section by the Commissioner or the authorized officer, shall issue a notice of re-assessment to the tax payer demanding that the tax shall be paid within thirty days of the service of the notice and after giving the tax payer the opportunity of show cause in writing;
   • (d) the owner or occupier may either accept the property tax assessed and the penalty levied or send objections to the Commissioner or the authorized officer within a period of thirty days from the date of receipt of a copy of the notice under this sub-section;
   • (e) the Commissioner or the authorized officer shall consider the objections and pass such orders either confirming or revising such assessment within a period of sixty days from the date of filing objections and a copy of the order shall be sent to the owner or occupier concerned.
8. (14) An assessment or re-assessment under this section shall not be made after the following time limits,-
   • (i) three years after filing the tax return under this section;
   • (ii) three years after the evidence of facts, sufficient in the opinion of the Commissioner or the authorized officer to justify making of the re- assessment, comes to its knowledge, whichever is later.
9. (15) In computing the period of limitation specified for assessment or re-assessment, as the case may be under this Act, the period taken for disposal of any appeal against an assessment or other proceedings by the appellate authority, a tribunal or competent court shall not be taken into account for assessment or re-assessment as the case may be.
10. (16) Subject to sub-section (2), the property tax assessed and levied under this section shall be liable for revision once in three years by enhancing

15 percent commencing from the financial year 2008-09:

Provided that the Municipal Corporation may enhance such property tax upto 30 percent once in three years and different rates of enhancement may be made to different areas and different classes of buildings and lands: Provided further that the non-assessment of property tax under this section during the block period of three years shall not be applicable to a building in respect of which there is any addition, change of use, alteration or variation to it. The owner or occupier shall report such changes within six months from the date of completion or occupation whichever is earlier alongwith the revised return and tax: Provided also that nothing contained in this section shall be deemed to affect the power of State Government to direct an earlier revision of property tax.

1. (17) The Commissioner shall have power to clarify any doubt as to classification of zones, unit area value and class of property. The decision of the Commissioner in this regard shall be final.]

² Inserted by Act 8 of 2020 w.e.f. 27.04.2020.

1. Section 108A inserted by Act 2 of 2009 w.e.f. 13.01.2009.

(1) The taxable capital value of the building shall be assessed

1[together with the land occupied by it] . The taxable capital value of such land shall be assessed having regard to the

2[market value guidelines of properties published] under section 45B of the Karnataka Stamp Act, 1957.

3[subject to such rules as may be prescribed]

The taxable capital value of the building shall be

4[equivalent of

5[twenty five percent of the prevailing market value guidelines]

] of properties published under section 45B of the Karnataka Stamp Act, 1957 minus depreciation at the time of assessment, determined as far as may be notified by the Government from time to time]

¹ Substituted by Act 32 of 2003 w.e.f. 19.11.2001.

² Substituted by Act 32 of 2003 w.e.f. 16.6.2003.

³ Inserted by Act 5 of 2005 w.e.f. 1.4.2005.

⁴ Substituted by Act 5 of 2005 w.e.f. 1.4.2005.

⁵ Substituted for the words “fifty percent of the market value guidelines”, by Act 04 of

2021 w.e.f 19.01.2021.

1. (2) The taxable capital value of the vacant land shall be 2[equivalent of 3[twenty five percent of] the prevailing 1[market value guidelines] of properties published] of the land notified by the Government under section 45B of the Karnataka Stamp Act, 1957. of 2021 w.e.f 19.01.2021. 2[

¹ Substituted by Act 32 of 2003 w.e.f. 20.8.2003.

² Substituted by Act 5 of 2005 w.e.f. 1.4.2005.

³ Substituted for the words “ fifty percent of the market value guidelines”, by Act 04

(1) Notwithstanding anything contained in section 108 and 109 the property tax assessed and levied under either provision shall be assessed in year of revision of guidance value of property under section 45B of the Karnataka Stamps Act, 1957. (2) The property tax shall stand enhanced by three percent for every financial year in which no revision of guidance value is made. Provided that, the Municipal Corporation may enhance such property tax up to five percent for every financial year and different rate of enhancement may be made to different areas and different classes of buildings and lands. Provided further that, nothing contained in this section shall be deemed to affect the power of State Government to direct an earlier revision of property tax. Explanation: “Financial year” shall mean the year commencing on the first day of April.] ] w.e.f.1.4.2005. 1[109A. Enhancement of property tax.- Notwithstanding anything contained in section 1. Inserted by Act 31 of 2001 w.e.f. 19.11.2001 and substituted by Act 5 of 2005 2. Substituted by Act 04 of 2021 w.e.f. 19.01.2021, The previous text was, “ 108 and 109 the property tax assessed and levied under either provision shall not be assessed each year thereafter but shall stand enhanced by 15 percent once in every three years commencing from the financial year 2005-2006: Provided that the Municipal Corporation may enhance such property tax upto 30 percent once in three years and different rates of enhancement may be made to different areas and different classes of buildings and lands: Provided further that the non assessment of property tax under this section during the block period of three years shall not be applicable to a building in respect of which there is any addition, alteration or variation to it. Provided also that nothing contained in this section shall be deemed to affect the power of State Government to direct an earlier revision of property tax.] ”.

1. (2) The property tax shall stand enhanced by three percent for every financial year in which no revision of guidance value is made. Provided that, the Municipal Corporation may enhance such property tax up to five percent for every financial year and different rate of enhancement may be made to different areas and different classes of buildings and lands. Provided further that, nothing contained in this section shall be deemed to affect the power of State Government to direct an earlier revision of property tax. Explanation: “Financial year” shall mean the year commencing on the first day of April.] ] w.e.f.1.4.2005. 1[109A. Enhancement of property tax.- Notwithstanding anything contained in section

¹ Inserted by Act 31 of 2001 w.e.f. 19.11.2001 and substituted by Act 5 of 2005

² Substituted by Act 04 of 2021 w.e.f. 19.01.2021, The previous text was, “

108 and 109 the property tax assessed and levied under either provision shall not be assessed each year thereafter but shall stand enhanced by 15 percent once in every three years commencing from the financial year 2005-2006: Provided that the Municipal Corporation may enhance such property tax upto 30 percent once in three years and different rates of enhancement may be made to different areas and different classes of buildings and lands: Provided further that the non assessment of property tax under this section during the block period of three years shall not be applicable to a building in respect of which there is any addition, alteration or variation to it. Provided also that nothing contained in this section shall be deemed to affect the power of State Government to direct an earlier revision of property tax.]

”.

1[(1)] The following buildings and lands shall be exempted from the property tax:- 1. Re-numbered by Act 31 of 2001 w.e.f. 19.11.2001

1. (a) places set apart for public worship and either actually so used or used for no other purposes;
2. (b) choultries for the occupation of which no rent is charged and choultries the rent charged for occupation of which is used exclusively for charitable purposes;
3. (c) places used for the charitable purpose of sheltering the destitute or

animals and orphanages, homes and schools for the deaf and dumb, asylum for the aged and fallen women and such similar institutions run purely on philanthropic lines as are approved by Government;

1. (d) such ancient monuments protected under the Karnataka Ancient and Historical Monuments and Archaeological Sites and Remains Act, 1961 and the Ancient Monuments and Archeological Sites and Remains Act, 1958 (Central Act 24 of 1958) or parts thereof as are not used as residential quarters or public offices;
2. (e) charitable hospitals and dispensaries but not including residential quarters attached thereto;
3. (f) such hospitals and dispensaries maintained by railway administrations as may from time to time be notified by Government, but not including residential quarters attached thereto;
4. (g) burial and cremation grounds included in the list published by the Commissioner under sub-section (3) of section 394;
5. (h) Government lands set apart for free recreational purposes and all such other Government land as may be notified by it, from which in the opinion of the Government no income could be derived;
   • (i) building or lands exclusively used for,-
6. (a) students hostels which are not established or conducted for profit;
7. (b) educational purposes by recognised educational institutions;
8. (c) the offices of Labour Associations registered under the Trade Union Act, 1926 and belonging to such Association;
9. (j) buildings or lands belonging to the Central Government or any State Government used for purposes of Government and not used or intended to be used for residential or commercial 3[or industrial] purposes;
10. (k) buildings or lands belonging to 1[any Urban Development Authority constituted under the Karnataka Urban Development Authorities Act, 1987] , the Bangalore Development Authority, 2[the Bangalore Water Supply and Sewerage Board] the Karnataka Housing Board or any local authority the possession of which has not been delivered to any person, in pursuance of any grant, allotment or lease;
11. (l) land which is registered as land used for agricultural purposes in the revenue accounts of Government and is actually used for the cultivation of crops: Provided that nothing contained in clauses (a), (c) and (e) shall be deemed to exempt from property tax, any building or 1[vacant land] for which rent is payable by the person or person using the same for the purposes referred to in the said clauses: Provided further that for purpose of clause (j), a certificate issued by Government or any officer duly authorised by Government that any building or 1[vacant land] is used for purposes of Government and not used or intended to be used for residential or commercial 2[or industrial] purposes shall be binding on the corporation. 1[(1A) Notwithstanding anything contained in the foregoing provisions of this Chapter, the Corporation may exempt fifty percent of the property tax on any one of the land or building belonging to an ex-serviceman or family of a deceased ex-serviceman, in the manner as may be prescribed. Explanation.- For the purpose of this sub-section,-
12. (a) “ex-serviceman” means a person who has served in any rank in the regular Army, Navy and Air Force of the Union and includes a person who has served in Defence Security Corps, the General Reserve Engineering Force, the Lok Sahayak Sena and Para Military Forces;
13. (b) “family of the deceased ex-serviceman” means the father, mother, the surviving spouse and minor children of the deceased ex-serviceman: Provided that in respect of a building, it must be used by the ex- serviceman or member of the family of a deceased ex-serviceman for the purpose of their residence: Provided further that the ex-serviceman or his family as the case may be shall submit a certificate from Sainik Welfare Board, Karnataka that he,-
    • (i) is an ex-serviceman or as the case may be he is a member of the family of the deceased ex-serviceman;
    • (ii) is a permanent resident of Karnataka; and
    • (iii) is residing in such building.] 1[(2) Notwithstanding the exemptions granted under this section it shall be open to the corporation to collect service charges for providing civic amenities and for general or special services rendered at such rates as may be prescribed.]

¹ Substituted by Act 32 of 2003 w.e.f. 20.8.2003.

² Inserted by Act 15 of 2010 w.e.f. 16.4.2010.

³ Inserted by Act 02 of 2022 w.e.f. 13.01.2022.

¹ Substituted by Act 32 of 2003 w.e.f. 19.11.2001.

² Inserted by Act 02 of 2022 w.e.f. 13.01.2022.

¹ Inserted by Act 19 of 2012 w.e.f. 28.4.2012.

¹ Inserted by Act 31 of 2001 w.e.f. 19.11.2001.

The property tax on buildings and lands shall, subject to the prior payment of the land revenue, if any, due thereon to the Government be a first charge upon the said buildings or lands and upon the movable property, if any, found within or upon such buildings or lands and belonging to the person liable to such tax.

(1) Subject to the provisions of sub-section (2), the property tax shall be primarily payable as follows, namely:- (a) if the premises are held immediately from Government or the corporation, from the actual occupier thereof: 1[Provided that the property tax due in respect of premises owned by the Government and occupied by any person on payment of rent, shall be payable by the Government: Provided further that no property tax shall be payable in respect of premises owned by the Corporation and occupied by any person on payment of rent.] (b) if the premises are not so held,- (i) from the lessor if the premises are let; (ii) from the superior lessor is the premises are sub-let; (iii) from the person in whom the right to let the premises vests, if they are unlet. 1. Substituted by Act 24 of 1978 w.e.f. 29.9.1978. (2) If any land has been let for any term exceeding one year to a tenant and such tenant or any person deriving title howsoever from such tenant has built upon the land, the property tax assessed upon the said land and upon the building erected thereon shall be primarily payable by the said tenant or such person whether or not the premises be in the occupation of the said tenant or the person. (3) The property tax shall be paid by the person primarily liable within 1[ninety days] after the commencement of every 1[year] . 2[Provided that, for the financial year 2020-2021, the property tax shall be paid by the person primarily liable, within one month from the date of commencement of the Karnataka Municipalities and Certain Other Law (Amendment) Act, 2021] 1[(4) If default is made in making payment in accordance with sub- section (3), the person liable to pay the tax shall pay a penalty at the rate of two percent per month of the amount of tax remaining unpaid after the expiry of the period specified in sub-section (3)] 1. Sub-section (4) to (7) Omitted by Act 31 of 2001 and sub-section (4) inserted by Act 32 of 2003 w.e.f. 16.6.2003. 1. Substituted by Act 31 of 2001 w.e.f. 19.11.2001. 2. Inserted by Act 07 of 2021 w.e.f. 19.02.2021

1. (a) if the premises are held immediately from Government or the corporation, from the actual occupier thereof: 1[Provided that the property tax due in respect of premises owned by the Government and occupied by any person on payment of rent, shall be payable by the Government: Provided further that no property tax shall be payable in respect of premises owned by the Corporation and occupied by any person on payment of rent.]
2. (b) if the premises are not so held,-
   • (i) from the lessor if the premises are let;
   • (ii) from the superior lessor is the premises are sub-let;
   • (iii) from the person in whom the right to let the premises vests, if they are unlet.

¹ Substituted by Act 24 of 1978 w.e.f. 29.9.1978.

1. (2) If any land has been let for any term exceeding one year to a tenant and such tenant or any person deriving title howsoever from such tenant has built upon the land, the property tax assessed upon the said land and upon the building erected thereon shall be primarily payable by the said tenant or such person whether or not the premises be in the occupation of the said tenant or the person.
2. (3) The property tax shall be paid by the person primarily liable within 1[ninety days] after the commencement of every 1[year] . 2[Provided that, for the financial year 2020-2021, the property tax shall be paid by the person primarily liable, within one month from the date of commencement of the Karnataka Municipalities and Certain Other Law (Amendment) Act, 2021] 1[(4) If default is made in making payment in accordance with sub- section (3), the person liable to pay the tax shall pay a penalty at the rate of two percent per month of the amount of tax remaining unpaid after the expiry of the period specified in sub-section (3)] 1. Sub-section (4) to (7) Omitted by Act 31 of 2001 and sub-section (4) inserted by Act 32 of 2003 w.e.f. 16.6.2003.

¹ Substituted by Act 31 of 2001 w.e.f. 19.11.2001.

² Inserted by Act 07 of 2021 w.e.f. 19.02.2021

(1) Every owner or occupier who is liable to pay property tax under this Act, shall every year submit to the Commissioner or the officer authorised by him in this behalf (hereinafter referred to as authorised officer) a return in such form within such period and in such manner as specified in schedule III. Provided that if the owner or occupier who is liable to pay tax files return and also pays tax which is due, within one month from the date of commencement of the year, he shall be allowed a rebate of five percent on the tax payable by him.

1[Provided further that, for the financial year 2020-2021 if the owner or occupier who is liable to pay tax files return and also pays tax which is due or within one month from the date of commencement of the Karnataka Municipalities and Certain Other Law (Amendment) Act, 2021, he shall be allowed a rebate of five percent on the tax payable by him.

¹ Inserted by Act 07 of 2021 w.e.f. 19.02.2021

Provided also that, in case property tax is paid in full in the financial year 2020-21 before the commencement of the Karnataka Municipalities and Certain Other Law (Amendment) Act, 2021, the rebate so allowed shall be adjusted in payment of tax for the future years.]

1. (2) Before any owner or occupier submits any return under sub-section (1), he shall pay in advance full amount of the property tax payable by him on the basis of such return and shall furnish alongwith the return satisfactory proof of payment of such tax and the tax so payable shall for the purposes of this Act be deemed to be the property tax due from such owner or occupier. After the final assessment is made the amount of property tax so paid shall be deemed to have been paid towards the property tax finally assessed.
2. (3) If the Commissioner or the authorised officer is satisfied that any return submitted under sub-section (1) is correct and complete, he shall asses the property tax in accordance with the provisions of this Act and the rules made thereunder and shall send a copy of the order of assessment to the owner or occupier concerned. Assessment under this sub-section shall be concluded within one year from the date of submission of return under sub- section (1). 1[Notwithstanding anything contained in this sub-section the assessment made under this sub-section for any return submitted under sub-section (1) for the last six financial years, starting from the financial year 2023-24, shall be concluded within one year.]
3. (4) If any owner or occupier fails to submit a return as required under sub-section (1) 1[or fails to pay in advance the amount of property tax payable by him as required under Sub-section (2)] or submits an incomplete or incorrect return, the Commissioner or the authorised officer, shall cause an inspection of the land and building and may also cause such local enquiry as may be considered necessary, and based on such inspection and information collected, he shall assess the property tax and send a copy of the order of assessment to the owner or occupier concerned.
4. (5) When making an assessment of property tax under sub-section (3) or (4), the Commissioner or the authorised officer may also direct the owner or occupier to pay in addition to the property tax assessed a penalty,- 1[(a) at the rate of two percent per month of the amount of property tax assessed and due in case of failure to pay the amount of property tax and to submit a return]
   • (b) not exceeding two times the amount of difference between the property tax assessed and the property tax paid along with his return

¹ Inserted by Act 43 of 2024 w.e.f. 10.09.2024.

¹ Inserted by Act 32 of 2003 w.e.f. 16.6.2003.

¹ Substituted by Act 32 of 2003 w.e.f. 16.6.2003.

in the case of knowingly submitting an incomplete or incorrect return.

¹ Inserted by Act 32 of 2003 w.e.f. 16.6.2003.

1[(c) One hundred rupees in case of failure to submit a return after payment of property tax in full.]

1. (6) The owner or occupier may either accept the property tax assessed and the penalty if any, levied or send objections to the Commissioner or the authorised officer within a period of thirty days from the date of receipt of a copy of the order under sub-section (3) or (4).
2. (7) The Commissioner or the authorised officer shall consider the objections and pass such order either confirming or revising the assessment of such tax and penalty if any, within a period of sixty days from the date of filing objections and a copy of the order shall be sent to the owner or occupier concerned.
3. (8) In order to facilitate filing of a return by an owner or occupier of any 1[building or vacant land]

and assessment of property tax under this section,

¹ Substituted by Act 32 of 2003 w.e.f. 19.11.2001.

the corporation shall, from time to time issue guidelines for determining the taxable capital value and property tax payable thereon.

(1) A property tax register in respect of buildings 1. Substituted by Act 43 of 2024 w.e.f. 10.09.2024. 1[vacant building sites] or both in the city shall be maintained in such form and in such manner as may be prescribed. 1[(1A) (i) Notwithstanding anything contained in the Act, prior approval for the layout plan by the jurisdictional planning authority under section 17 of the Karnataka Town and Country Planning Act, 1961 (Karnataka Act 11 of 1963) shall be obtained by the Commissioner or any officer authorized by the Commissioner to issue new PID or khata for the building sites meant for the purposes of construction of building. (ii) No new PID or khata shall be issued by the Commissioner or any officer authorized by the Commissioner of Corporation, without complying with the provisions under section 17 and sub-section (2-E) of section 17 of the Karnataka Town and Country Planning Act, 1961(Karnataka Act 11 of 1963): Provided that, if the Commissioner or any officer authorized by the Commissioner of the Corporation fails to comply with the said provisions of the Karnataka Town and Country Planning Act, 1961 (Karnataka Act 11 of 1963) and section 505 of this Act, and issues new PID or khata to an unlawfully formed plot, the concerned officer shall be liable for such penalty and punishment as may be prescribed. (1B) (i) The Corporation may levy and collect the property tax from every building, vacant land or both, including a building constructed in violation of the provisions of building bye-laws or in an unauthorized layout or in a revenue land or from a building occupied without issuance of Occupancy or Completion certificate, only for the property created prior ` 108 to the date of inception of this provision, except for the building constructed illegally in the Government land, land belonging to any local body, any statutory body or an organization, owned or controlled by the Government. The property tax levied for such building or vacant site shall be double the tax payable for the first year and only the property tax shall be levied for the subsequent years, which shall be maintained in a separate register. No new property shall be entered in the register after the date of commencement of the Karnataka Municipalities and Certain other Law (Amendment) Act, 2024: Provided that, levy and collection of property tax under this sub-section from such building or vacant land does not confer any right to regularize violation made, or title, ownership or legal status to such building or vacant land. The persons holding such building or vacant land shall always be liable for legal action for violation of law, in accordance with the provisions of this Act or any other law for the time being in force. The Commissioner shall maintain a record as specified in this section, which shall contain the details of the lawful buildings or vacant lands and unlawful buildings or vacant lands, which have been taxed under this section.] 1. Inserted by Act 43 of 2024 w.e.f. 10.09.2024. 1. Omitted by Act 32 of 2003 w.e.f. 20.8.2003. 1[(2) xxx] (3) The authorised officer may on an application made by any person and subject to payment of such fees as may be specified by the corporation from time to time, permit such person to inspect the property tax register at reasonable hours or grant certified extract of the entries in the register or certified copies thereof. (4) The Commissioner or the authorised officer may issue a property tax certificate to every owner or occupier of building or lands, containing all the details of, buildings or lands or both and the property tax payable in relation to such buildings or lands or both.

¹ Substituted by Act 43 of 2024 w.e.f. 10.09.2024.

1[vacant building sites] or both in the city shall be maintained in such form and in such manner as may be prescribed.

1[(1A) (i) Notwithstanding anything contained in the Act, prior approval for the layout plan by the jurisdictional planning authority under section 17 of the Karnataka Town and Country Planning Act, 1961 (Karnataka Act 11 of 1963) shall be obtained by the Commissioner or any officer authorized by the Commissioner to issue new PID or khata for the building sites meant for the purposes of construction of building.

1. (ii) No new PID or khata shall be issued by the Commissioner or any officer authorized by the Commissioner of Corporation, without complying with the provisions under section 17 and sub-section (2-E) of section 17 of the Karnataka Town and Country Planning Act, 1961(Karnataka Act 11 of 1963): Provided that, if the Commissioner or any officer authorized by the Commissioner of the Corporation fails to comply with the said provisions of the Karnataka Town and Country

Planning Act, 1961 (Karnataka Act 11 of 1963) and section 505 of this Act, and issues new

PID or khata to an unlawfully formed plot, the concerned officer shall be liable for such penalty and punishment as may be prescribed. (1B) (i) The Corporation may levy and collect the property tax from every building, vacant land or both, including a building constructed in violation of the provisions of building bye-laws or in an unauthorized layout or in a revenue land or from a building occupied without issuance of Occupancy or Completion certificate, only for the property created prior ` 108 to the date of inception of this provision, except for the building constructed illegally in the Government land, land belonging to any local body, any statutory body or an organization, owned or controlled by the Government. The property tax levied for such building or vacant site shall be double the tax payable for the first year and only the property tax shall be levied for the subsequent years, which shall be maintained in a separate register. No new property shall be entered in the register after the date of commencement of the Karnataka Municipalities and Certain other Law (Amendment) Act, 2024: Provided that, levy and collection of property tax under this sub-section from such building or vacant land does not confer any right to regularize violation made, or title, ownership or legal status to such building or vacant land. The persons holding such building or vacant land shall always be liable for legal action for violation of law, in accordance with the provisions of this Act or any other law for the time being in force. The Commissioner shall maintain a record as specified in this section, which shall contain the details of the lawful buildings or vacant lands and unlawful buildings or vacant lands, which have been taxed under this section.]

¹ Inserted by Act 43 of 2024 w.e.f. 10.09.2024.

¹ Omitted by Act 32 of 2003 w.e.f. 20.8.2003.

1[(2) xxx]

1. (3) The authorised officer may on an application made by any person and subject to payment of such fees as may be specified by the corporation from time to time, permit such person to inspect the property tax register at reasonable hours or grant certified extract of the entries in the register or certified copies thereof.
2. (4) The Commissioner or the authorised officer may issue a property tax certificate to every owner or occupier of building or lands, containing all the details of, buildings or lands or both and the property tax payable in relation to such buildings or lands or both.

¹ Omitted by Act 43 of 2024 w.e.f. 10.09.2024.

(1) The Commissioner shall, subject to the general or special orders of the Government, direct a survey of buildings or lands or both within the city with a view to the assessment of property tax and may obtain the services of any qualified person or agency for conducting such survey and preparation of property register.

1. (2) A property register shall be maintained in such manner and containing such particulars in respect of buildings or lands or both as specified in Schedule III.
2. (3) For the purpose of preparation of property register or assessment of property tax in respect of any buildings or lands or both, the Commissioner or any person authorised by him in this behalf may enter, inspect, survey or measure any land or building after giving notice to the owner or occupier before such inspection and the owner or occupier shall be bound to furnish necessary information required for the purpose: Provided that such entry into and upon any building or land shall be made between sunrise and sunset: Provided further that in the case of buildings used as human dwelling due regard shall be paid to the social and religious customs of the occupiers and no apartment in the actual occupancy of a woman shall be entered until she has been informed that she is at liberty to withdraw and every reasonable facility has been afforded to her for withdrawing] .

1. Sections 112A to 112D Inserted by Act 31 of 2001 w.e.f. 19.11.2001.

(1) If the property tax including penalty leviable under sub- section (5) of section 112A is not paid after it has been become due, the corporation may cause to be served upon the person liable for payment of the same a notice of demand in such form as may be prescribed.

1. (2) If the person to whom a notice of demand has been served under sub-section (1) does not, within thirty days from the service of such notice of demand either,-
   • (a) pays the sum demanded in the notice; or
   • (b) prefers an appeal under sub-section (3) against the demand, he shall be deemed to be in default and thereupon such sum shall be recovered along with such penalty and in such manner as may be prescribed.
2. (3) Notwithstanding anything contained in sections 61A or 62 or 444, any person disputing the claim in the notice of demand served under sub- section (1), may within thirty days after the service of such notice, appeal in such manner subject to such conditions and to such authority as may be prescribed.]

¹ Substituted by Act 31 of 2001 w.e.f. 19.11.2001.

(1) Whenever the title of any person primarily liable to the payment of the property tax on any premises to or over such premises is transferred, the person whose title is transferred and the person to whom the same is transferred shall, within three months after the execution of the instrument of transfer or after its registration if it be registered or after the transfer is effected, if no instrument be executed, give notice of such transfer to the Commissioner.

1. (2) In the event of the death of any person primarily liable as aforesaid, the person to whom the title of the deceased shall be transferred as heir or otherwise shall give notice of such transfer to the Commissioner within one year from the death of the deceased. 1[(3) Whenever such transfer comes to the knowledge of the Commissioner or authorised officer through such notice the name of the transferee shell be entered in the property tax register.]
2. (4) Every person who makes a transfer as aforesaid without giving such notice to the Commissioner shall, in addition to any other liability which he may incur through such neglect, continue to be liable for the payment of the property tax assessed on the premises transferred until he gives notice or until the transfer shall have been recorded in the corporation registers, but nothing in this section shall be held to affect,-
   • (a) the liability of the transferee for the payment of the said tax, or (b)the prior charge of the corporation under section 111.
3. (5) Notwithstanding anything contained in this Act, in respect of any building or land belonging to the City of Mysore Improvement Trust Board, the Bangalore Development Authority or the Karnataka Housing Board or any local authority the possession of which has been delivered to any person in pursuance of any grant, allotment or lease by the Board or local authority concerned, the transfer of title of any person primarily liable to the payment of property tax shall not be recorded in the corporation registers without consulting the Board or local authority concerned.

¹ Substituted by Act 32 of 2003 w.e.f. 20.8.2003.

Where the Commissioner, either suo motu or otherwise, after such enquiry as he considers necessary is satisfied that any transfer of title under section 114 was got recorded in the Corporation register by fraud, misrepresentation, or suppression of facts or by furnishing false, incorrect or incomplete material, he may within a period of three years from the date of such recording of transfer of title reopen the case and pass such order with respect thereto as he thinks fit: Provided that no such order shall be made except after giving the person likely to be affected thereby a reasonable opportunity of being heard.]

1. Section 114A Inserted by Act 14 of 1995 w.e.f. 3.5.1995.

(1)

1[xxx] If any building in the city is constructed or re-constructed, the owner shall give notice thereof to the Commissioner, within fifteen days from the date of completion or occupation of the building whichever is earlier.

1[(b) xxx]

¹ Omitted by Act 31 of 2001 w.e.f. 19.11.2001.

1[(c) xxx] (2)

1[xxx] If any building in the city is demolished or destroyed, the owner shall, until notice thereof is given to the Commissioner, be liable for the payment of the property tax for which he would have been liable had the building not been demolished or destroyed.

1[(b) xxx]

¹ Omitted by Act 31 of 2001 w.e.f. 19.11.2001.

1[(c) xxx]

¹ Omitted by Act 31 of 2001 w.e.f. 19.11.2001.

1[116. Omitted]

upon premises and to condone omission to give notice.- (1) For the purpose of assessing the property tax, the Commissioner may, by notice, call upon the owner or occupier of any building or land to furnish him within thirty days after the service of the notice where the notice is served upon the

Government, a railway administration or a company and within fourteen days after such service in other cases, with returns of the rent payable for the building or land, the cost of erecting the building, and the measurements of the land and with such other information as the Commissioner may require and every owner or occupier upon whom any such notice is served shall be bound to comply with it and to make a true return to the best of his knowledge or belief.

1. (2) For the purpose aforesaid the Commissioner may enter, inspect, survey and measure any building or land after giving twenty-four hour's notice to the owner or occupier.
2. (3) The Commissioner may, at his discretion condone omissions to give notice under section 113, 114, 115 or 116 giving his reasons in writing for every such condonations. 1[118. to 127. x x x] 1[128. to 133. x x x]

¹ Omitted by Act 35 of 1994 w.e.f. 1.6.1994.

¹ Omitted by Act 21 of 1979 w.e.f. 31.3.1979.

1[or Fee]

on advertisement.- Every person who erects, exhibits, fixes or retains, upon or over any land, building, wall or structure any advertisement or who displays any advertisement to public view in any manner whatsoever, in any place whether public or private, shall pay on every advertisement which is so erected, exhibited, fixed, retained or displayed to public view, a tax

1[or fee] calculated at such rates and in such manner and subject to such exemptions, as the corporation may, with the approval of the Government, by resolution determine: Provided always that the rates shall be subject to the maxima and minima laid down by the Government in this behalf: Provided further that no tax

1[or fee] shall be levied under this section on any advertisment or a notice,-

1. (a) of a public meeting, or corporation of the city, or
2. (b) of an election to any legislative body, or
3. (c) of a candidature in respect of such an election: Provided also that no such tax 1[or fee] shall be levied on any advertisement which is not a sky-sign and which,-
4. (a) is exhibited within the window of any building; or
5. (b) relates to the trade or business carried on within the land or building upon or over which such advertisement is exhibited, or to any sale or letting of such land or building or any effects therein or to any sale, entertainment or meeting to be held upon or in such land or building; or
6. (c) relates to the name of the land or building, upon or over which the advertisement is exhibited, or to the name of the owner or occupier of such land or building; or
7. (d) relates to the business of any railways; or
8. (e) is exhibited within any railway station or upon any wall or other property of a railway except any portion of the surface of such wall or property fronting any street. Explanation 1.- The word 'structure' in this section shall include any movable board on wheels used as an advertisement or an advertisment medium. Explanation 2.- The expression 'sky-sign' shall, in this section, mean any advertisement, supported on or attached to any post, pole, standard, frame work or other support wholly or in part upon or over any land, building, wall or structure which, or any part of which shall be visible against the sky from some point in any public place and includes all and every part of any

such post, pole, standard, frame-work or other support. The expression 'sky-

sign' shall also include any balloon, parachute or other similar device employed wholly or in part for the purposes of any advertisment upon or over any land, building or structure or upon or over any public place but shall not include,-

1. (a) any flag-staff, pole, van or weather-cock, unless adapted or used wholly or in part for the purpose of any advertisement; or
2. (b) any sign, or any board, frame or other contrivance securely fixed to or on the top of the wall or parapet of any building, or on the cornice or blocking course of any wall, or to the ridge of a roof: Provided that such board, frame or other contrivance be of one continuous face and not openwork, and does not extend in height more than one meter above any part of the wall or parapet or ridge to, or against, or on which it is fixed or supported; or
3. (c) any advertisment relating to the name of the land or building, upon or over which the advertisement is exhibited, or to the name of the owner or occupier of such land or building; or
4. (d) any advertisement relating exclusively to the business of a railway,

and placed wholly upon or over any railway, railway station, yard, platform or station approach belonging to a railway, and so placed that it cannot fall into any street or public place; or

1. (e) any notice of land or buildings to be sold, or let, placed upon such land or buildings. Explanation 3.- 'Public place' shall, for the purpose of this section, mean any place which is open to the use and enjoyment of the public, whether it is actually used or enjoyed by the public or not.

¹ Inserted by Act 30 of 2021 w.e.f. 07.10.2021.

Commissioner.- (1) No advertisement shall, after the levy of the tax

1[or fee] under section 134 has been determined upon by the corporation, be erected, exhibited, fixed or retained upon or over any land, building, wall, hoarding or structure within the city or shall be displayed in any manner whatsoever in any place without the written permission of the Commissioner.

1. (2) The Commissioner shall not grant such permission if,-
   • (i) the advertisement contravenes any bye-law made by the corporation; or
   • (ii) the tax 1[or fee] , if any, due in respect of the advertisement has not been paid.
2. (3) Subject to the provisions of sub-section (2), in the case of an advertisement liable to the advertisement tax the Commissioner shall grant permission for the period to which the payment of the tax relates and no fee shall be charged in respect of such permission: Provided that the provisions of this section shall not apply to any advertisement erected, exhibited, fixed or retained on the premises of a railway relating to the business of a railway.

¹ Inserted by Act 30 of 2021 w.e.f. 07.10.2021.

The permission granted under section 135 shall become void in the following cases, namely:-

1. (a) if the advertisement contravenes any bye-laws made by the corporation;
2. (b) if any addition to the advertisement be made except for the purpose of making it secure under the direction of the corporation engineer;
3. (c) if any material change be made in the advertisement or any part thereof;
4. (d) if the advertisement or any part thereof falls otherwise than through accident;
5. (e) if any addition or altertation be made to, or in the building, wall or

structure upon or over which the advertisement is erected, exhibited, fixed or retained,if such addition or alteration involves the disturbance of the advertisement or any part thereof; and

1. (f) if the building, wall or structure upon or over which the advertisement is erected, exhibited, fixed or retained be demolished or destroyed.

When any advertisement is erected, exhibited, fixed or retained upon or over any land, building, wall, hoarding or structure in contravention of the provisions of section 134 or section 135 or after the written permission for the erection, exhibition, fixation or retention thereof for any period shall have expired or become void, the owner or person in occupation of such land, building, wall, hoarding or structure shall be deemed to be the person who has erected, exhibited, fixed or retained such advertisement in such contravention unless he proves that such contravention was committed by a person not in his employment or under his control or was committed without his connivance.

If any advertisement be erected, exhibited, fixed or retained contrary to the provisions of section 134 or section 135 or after the written permission for the erection, exhibition, fixation or retention thereof for any period shall have expired or become void, the Commissioner may, by notice in writing, require the owner or the occupier of the land, building, wall, hoarding or structure upon or over which the same is erected, exhibited, fixed or retained to take down or remove such advertisement or may enter any building, land or property and have the advertisement removed.

Commissioner may farm out the collection of any tax

1[or fee]

¹ Inserted by Act 30 of 2021 w.e.f. 07.10.2021.

on advertisement leviable under section 134 for any period not exceeding one year at a time on such terms and conditions as may be provided for in the bye- laws.

¹ Substituted by Act 8 of 2003 w.e.f. 1.4.2003.

transfer of immovable property shall be levied in the form of a surcharge at the rate of two percent of the duty imposed by the Karnataka Stamp Act, 1957, on instruments of sale, gift, mortgage, exchange or lease in perpetuity of all immovable property situated within the limits of a larger urban area.]

On the introduction of duty on transfer,- (a) section 28 of the Karnataka Stamp Act, 1957 shall be read as if it specifically required the particulars to be set forth separately in respect of property situated within and out side the city, (b) section 64 of the same Act shall be read as if it referred to the corporation as well as the Government.

1. (a) section 28 of the Karnataka Stamp Act, 1957 shall be read as if it specifically required the particulars to be set forth separately in respect of property situated within and out side the city,
2. (b) section 64 of the same Act shall be read as if it referred to the corporation as well as the Government.

The Government may make rules not inconsistent with this Act for regulating the collection of the duty, the payment thereof to the corporation and the deduction of any expenses incurred by the Government in the collection thereof.

Notwithstanding anything to the contrary contained in this Act or the rules made thereunder, if for any reason any person liable to pay any of the taxes or fees leviable under this chapter has escaped assessment in any half-year or year, the Commissioner may, at any time within six years from the date on which such person should have been assessed, serve on such person a notice assessing him to the tax or fee due and demanding payment thereof within fifteen days from the date of such service; and the provisions of this Act and the rules made thereunder shall, so far as may be, apply as if the assessment was made in the half-year or year to which the tax or fee relates.

1. (1) The corporation may, instead of imposing a water-rate or where a water- rate has been imposed, in individual cases, instead of levying a rate imposed in respect of the supply of water belonging to the corporation to or for use in connection with any private lands or buildings,-
   • (a) fix at rates not exceeding such as shall be specified in the rules in force under section 421 charges for such supply according to the quantity used, as ascertained by measurement; or
   • (b) arrange with any person on his application to supply on payment, periodically or otherwise, water belonging to the corporation, in such quantities or for such purposes (whether domestic, ornamental, or irrigational or far trade, manufacture or any other purpose), on such terms and subject to such conditions as it shall fix by agreement with such person: Provided that,-
     • (i) the meters, connection-pipes and all other works necessary for and incidental to such supply and all repairs, extensions and alterations of such works shall be under the control of the corporation and the expense thereof shall, so far as not inconsistent with the rules or bye-laws be defrayed by the person liable for the charges or payments fixed in respect of such supply; and
     • (ii) such supply of water shall be and shall be deemed to have been granted, subject to all such conditions as to the limit or stoppage thereof, and so to the prevention of waste or misuse, as are prescribed in the bye- laws for the time being in force.
2. (2) The corporation may compound for a period not exceeding one year at a time, with any person for a sum to be fixed in accordance with a scale approved by the corporation and to be paid monthly, quarterly or half yearly, in advance in lieu of all tolls payable in respect of any vehicle belonging to such person and issue a pass for the free admittance of the vehicle or animal within the limits of the city, provided that the sum charged shall not be less than one half of the amount which such person would have been liable to pay if the vehicle had to pay roll once every day during the period for which the pass is issued.
3. (3) Every sum claimed by a corporation due under sub-section (1) as charges, payments or expenses, or as lumpsum under section 120, shall for the purpose of this Chapter be deemed to be, and shall be recoverable in the same manner as an amount claimed on account of a tax recoverable under this Chapter: Provided that nothing in this section shall affect the right or power of a

corporation to contract with any person to supply for use beyond the limits of the city at such rates and on such conditions as the corporation may think fit, any quantity of water belonging to the corporation but not required for the purpose of this Act.

unfair in its incidence, or that the levy thereof, or of any part thereof, is obnoxious to the interests of the general public, the Government may require the said corporation, within such period as it shall fix in this behalf to take measures for removing any objection which appears to it exist to the said tax or fee, and if within the period so fixed, such requirement shall not be carried into effect to the satisfaction of the Government, it may, by notification suspend the levy of such tax or of such part thereof, until such time as the objection thereto shall be removed.

1. (2) The Government may at any time, by a notification rescind any such suspension.

¹ Substituted by Act 32 of 2003 w.e.f. 20.8.2003.

taxes.- The Government may, by notification require the corporation to impose any tax specified in the notification as may be imposed under section 103 in such manner and to such extent as the Government considers fit, and the corporation shall forthwith proceed to impose the tax in accordance with the requisition.]

The Rules and tables embodied in Schedule III shall be read as part of this Chapter.

¹ Omitted by Act 32 of 2003 w.e.f. 16.6.2003.