Assessment of property tax

(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.