TAXATION RULES

(See sections 103 and 147) PART I Provisions common to taxes in general 1. (1) The Commissioner shall prepare and keep assessment books in such form and in such parts and sections as he thinks fit, showing the persons and property liable to taxation under this Act. (2) The assessment books and where detailed particulars relating to any assessment are kept in separate records, the portion thereof containing such particulars shall be open at all reasonable times and without charge to inspection by any person who pays any tax to the corporation or his authorised agent and such person or agent shall be entitled to take extract free of charge from the said books and records. (3) The account books of the corporation shall be open without charge to inspection by any person who pays tax to the corporation or his authorised agent on a day or days in each month to be fixed by the corporation. 2. The Commissioner shall, save as otherwise provided in this Act, determine the tax to which each property or person is liable: Provided that in the case of taxes payable by the Commissioner the original assessment shall be made by the Mayor. 3.(1) The Commissioner shall give to every person making payment of a tax a receipt therefor signed by him or some person duly authorised by him in that behalf. (2) Such receipt shall specify,- (a) the date thereof; (b) the name of the person to whom it is granted; (c) the tax in respect of which payment has been made and in the case of property tax, also the property in respect of which payment has been made; (d) the period for which payment has been made; and (e) the amount paid. PART II Assessment of property tax 1[4.The tax able capital value of land shall be determined having regard to the estimated market value of the land notified in accordance with Section 45-B of the Karnataka Stamp Act, 1957 and as prevailing immediately before the last date stipulated for filing return under Rule 7. Any modification in the estimated market value made after such date shall not be taken in to account for the assessment of property tax during the year. 1.Rules 4 to 19 substituted by NotificationNo.UDD188 MNU 2001,dated 30-12-2002, w.e.f.31-12-2002 5. The taxable capital value of any land or building shall be determined by multiplying the estimated market value of land or building, as the case may be, by the area of such land or building. 6. The Commissioner shall cause to be published in the notice board of his office, the taxable capital value of land or building per unit and prevailing in different localities within the city. 7. Every owner or occupier who is liable to pay property tax shall submit a return in Form I in duplicate to the Commissioner or the officer authorised by him on or before thirtieth day of June every year. 1[7-A. Levy of service charge on buildings exempted from property tax.—(1) Service charges for providing civil amenities shall be levied in respect of buildings exempted from property tax under Section 110 excluding places of public worship, at the rate of 25% of the property tax leviable for such lands and buildings but for exemption under Section 111of the Act. 1. Rules 7-A and 7-B inserted by Notification No.UDD 65 MNU 2002, dated 27-2-2004, w.e.f.9-3-2004 (2) The owner or occupier of such building shall pay the service charges and submit a return in Form 1A in duplicate to the Commissioner or the authorized Officer in the manner specified in Rule7. 7-B. Levy of infrastructure Cess on Motor Vehicles.—(1) An infrastructure cess hall be levied on the class of motor vehicles registered in the limits of the corporations at the rates specified below.— I Two wheelers Rs. 50 II Light motor vehicles: (1) Three-wheelers Rs. 100 (2) Four-wheelers Rs. 300 III Medium and heavy vehicles (1) Passenger vehicle Rs. 400 (2) Goods carriage Rs. 500 (2) The infrastructure cess imposed on motor vehicles shall be leviable primarily from the register red owner or a person in possession or control of a motor vehicle, which is the subject of a hire purchase, agreement, or an agreement of lease or agreement of hypothecation. (3) The infrastructure cess shall be paid and return filed in Form I-B in duplicate to the Commissioner or authorized officer. (4) The liability of several registered owners or persons including the members of the family or association, firm or company in possession or control of motor vehicle in occupation of any building or place of business shall be joint and several.] 8. The return in Form I shall be submitted either in person or sent by registered post acknowledgement due. If it is presented in person one copy shall be returned to the owner or occupier after being dulyac knowledged by the Commissioner or the authorised officer. 9. If the return received under Rule 7 is correct and complete, Commissioner or the authorised officer, as the case may be, shall on the basis of the information furnished in the return necessary proceed to assess the property tax. 10. If no return is filed or the return filed is incomplete or incorrect, the Commissioner or the authorised officer may proceed to assess the property tax based on the inspection made and information collected and after holding such enquiry as he considers necessary. 11. The Commissioner or the authorized officer, as the case may be, shall prepare and maintain a property tax register in Form II in respect of each ward for every year. 12. The Commissioner shall be the authority for the purpose of sub-section (2) of Section 112-C. He shall, before determining the penalty payable by any person under that section, issue notice to such person calling upon him to send the objections, if any. 13. On receipt of the objections, if any, and after holding such enquiry as he deems fit he shall determine the penalty payable under Section 112-C. 14. An appeal against an order under sub-section (2)of Section112-Cshall lie to the District Court having jurisdiction over the area concerned. 15. If the penalty determined under Section112-Cisnot paid within thirty days from the date of receipt of the order, the Corporation may cause to be served upon the person liable for payment of the same a notice of demand in Form III. 16. If the person to who man ot ice of demand has been served under Rule 14 does not, within thirty days from the service of such notice of demand either.— (i) Pay the sum demanded in the notice ;or (ii) Prefers an appeal under sub-section(3) of Section112-C.Hes hall be deemed to be in default and thereupon such sum shall be recovered in accordance with Rules 27 to 37. 17. The notice of demand under Section113 shall be in Form III. 18. The property tax along with the penalty shall be recovered from the person deemed to be in default in the manner specified in Rules 27 to 37. 19. An appeal against any claim included in the notice of demand served under sub- section(1)of Section113 may be made to the District Court having jurisdiction over the area concerned: Provided that no such appeal shall be heard and determined unless an application in writing, stating the grounds on which the claim is disputed has been made and the amount admitted by the applicant has been deposited by the applicant in the Corporation Office.] 1[19-A. Rate of solid waste management cess on buildings.—A solid waste management cess shall be levied on the buildings situated within the limits of Corporation at the monthly rate specified below.— 1. Rules 19-A and 19-B inserted by Notification No.UDD 65 MNU2002, dated 27-2-2004, w.e.f.9-3-2004 I. Residential Buildings.— (i) Plinth area less than 1000 sq.ft. Rs. 10 (ii) Plinth area not less than 1000 sq. ft. and not more than 3000sq.ft. Rs. 30 (iii) Plinth area exceeding 3000 sq. ft. Rs. 50 II. Commercial Buildings.— (i) Plinth area less than 1000 sq.ft. Rs. 50 (ii) Plinth area not less than 1000 sq. ft. and not more than 5000 sq.ft. Rs. 100 (iii) Plinth area exceeding 5000 sq. ft. Rs. 200 III. Industrial Buildings.— (i) Plinth area not less than 1000 sq.ft. Rs. 100 (ii) Plinth area not less than 1000 sq. ft. and not more than 5000 sq.ft. Rs. 200 (iii) Plinth area exceeding 5000 sq. ft. Rs. 300 IV. Hotels, Kalyanamantaps, Nursing Homes.— (i) Plinth area not less than 10000 sq.ft. Rs. 300 (ii) Plinth area not less than 10000 sq. ft. and not more than 50000 sq.ft. Rs. 500 (iii) Plinth area exceeding 50000 sq. ft. Rs. 600 Note.—For the purpose of these rules, solid waste will not include industrial and hazardous wastes and also hospital wastes. 19-B. Manner of assessment and collection of solid waste management cess.— (1) Wherever provision for removal of rubbish and filth is made under Sections 255and 258 of the Act, the Commissioner may entrust an agency for management and handling of solid waste and empower such agency to collect the solid waste management cess specified in Rule 19-A from the owner or occupier of the building. (2) Wherever public notice ordering deposit of rubbish and filth by owners and occupiers is issued under Sections 256 and 257 of the Act, the Commissioner may permit any private agency including the residents Association consisting of the residents of the area to undertake the management and handling of solid waste and empower such private agency to collect the solid waste management cess specified in Rule 19-A from the owner or occupier of the building. (3) The agency shall collect the solid waste cess in accordance with the terms and conditions stipulated by the Commissioner. (4) In other cases, the Corporation may itself collect the solid waste management cess. (5) The Standing Committee shall be the prescribed authority for the purposes of sub-section (3) of Section 103-D in respect of solid waste management cess. (6) Any person who is aggrieved by any omission or commission of the agency authorized to collect solid waste management cess may appeal to the Standing Committee.] 1[20.-25. XXX.] 1. Rules 20 to 25 omitted by Notification No. UDD188 MNU 2001, dated 30-12-2002,w.e.f. 31-12-2002 PART III Collection of Taxes 26. (1) Where any tax, 1[XXX] is due from any person the Commissioner shall cause to be served upon or sent to such person a bill for the sum due before proceeding to enforce provisions of Rule 27: 1. The words and figures“ not being a tax in respect of which a notice has to be served under Section 125 or a direction has to be given underRule12”omitted by NotificationNo.UDD188 MNU 2001, dated 30-12-2002, w.e.f. 31-12-2002 Provided that this sub-rule shall not be applicable in respect of 1. Substituted for the words and figures “property tax payable under Section 112” by Notification No. UDD 1[cess payable under Section 103-B, property tax and penalty payable under Section 112 and penalty payable under Section 112-C] . 188 MNU 2001, dated 30-12-2002, w.e.f. 31-12-2002 (2) A 1[XXX] bill under sub-rule (1) shall be signed by the Commissioner and shall contain.— 1. The words and figures “notice under Section 121 and a”, omitted by Notification No. UDD 188 MNU 2001, dated 30-12-2002, w.e.f. 31-12-2002 (a) a statement of the period and a description of the occupation, property or thing for which the tax is charged and other particulars of the demand, and (b) notice of the liability which may be incurred in default of payment. 27. (1) If the amount due on account of any tax is not paid within fifteen days from the 1[service of the bill] and if the person from whom the tax is due has not shown cause to the satisfaction of the Commissioner why it should not be paid the Commissioner may recover by distraint under his warrant and sale of the movable property of the defaulter or if the defaulter is the occupier of any building or land in respect of which a tax is due, by distress and sale of any movable property which may be found in or such building or land, the amount due on account of the tax to get her with the warrant fee and distraint fee and with such further sums as will satisfy the probable charges, that will be incurred in connection with the detention and of the sale of property so distrained: Section 121 or Rule 12 or Rule 26 or within thirty days after the commencement of the half-year under Section 113” by Notification No. UDD 188 MNU2001, dated 30-12-2002, w.e.f. 31-12-2002 Provided always that movable property described in the proviso to sub-section (1) of Section 60 of the Code of Civil Procedure,1908 (Central Act 5 of 1908), shall not be liable to distraint. (2) If for any reason the distraint, or a sufficient is train to f the defaulters property cannot be effected, the Commissioner may prosecute the defaulter before a Magistrate. (3) Nothing herein contained shall preclude the Corporation from suing in a Civil Court for the recovery of any tax, duty or other amount due to it under this Act. 28. Under a special order in writing of the Commissioner or any officer chargedwiththeexecutionofawarrantofdistressmay,betweensunriseand sunset, break open an you terorinner door or window of a building in order to make the distress, if he has reasonable ground for believing that such building contains property which is liable to seizure and if, after notifying his authority and purpose, and duly demanding admittance, he cannot otherwise obtain admittance: Provided that such officer shall not enter or break open the door of any apartment appropriated to women until he has given three hours’ notice of his intention and has given such women an opportunity to withdraw. 29. The officer charged with the execution of a warrant, shall, before making a distraint, demand payment of the tax due and the warrant fee. If the tax and fee are paid no distraint shall be made.— (a) seize such movable property of the defaulter as he may think necessary; (b) make an inventory of the property seized; and (c) give to the person in possession of the property seized at the time of seizure a copy of the inventory and the notice of sale: Provided that a period of seven days shall be allowed for paying the amounts due and redeeming the property seized. 30. The distress shall not be excessive, that is to say, the property distrained shall be as nearly as possible equal to the value of the tax due by the defaulter, together with all expenses incidental to the warrant, distraint, detention and sale. 31. (1) If the amount due by the defaulter on account of the tax, warrant, fee and 1. Substituted for the words and figures “service of the notice or bill or the giving of the direction referred to in distraint fee and the expenses incidental to the detention of the property are not paid within the period of seven days mentioned in the notice given under Rule 29 and if the distraint warrant is not suspended by the Commissioner, the property seized or a sufficient portion thereof, shall be sold by public auction under the orders of the Commissioner who shall apply the proceeds of the sale to the payment of the amount due on account of the tax, the warrant fee and the distraint fee and the expenses incidental to the detention and sale of the property, and shall return to the person in whose possession the property was at the time of seizure any property which may remain after the sale and the application of the proceeds there of a sa fore said if application is made by such person within three years from the date of the sale. If no such application is made, the property so remaining shall be for feited to the Corporation. If the proceeds of the sale are in sufficient for the payment of the amount due on account of the tax, the warrant fee and distraint fee and the expenses incidental to the detention and sale of the property, the Commissioner may again proceed under Rules 27 and 28 in respect of the sum remaining unpaid. (2) When the property seized is perishable or subject to speedy and natural decay or if the expense of keeping it well, together with the amount of tax due, exceed the value of the property, the Commissioner may sell it any time before the expiry of the said period of seven day sunless the amount due is sooner paid. (3) The Commissioner shall consider any objections to the distraint of any property which are made within the said period of seven days and may postpone the sale pending investigation thereof. If the Commissioner decides that the property attached was not liable to distraint, he shall return it or if it has already been sold, the proceeds of the sale to the person appearing to been titled there to any may again proceed under Rules 27and 28; and all fees and expenses connected with the first distraint and sale shall be recoverable from the defaulter if it shall appear to the Commissioner that he will fully permitted the distraint of the property when to his knowledge it was not liable to distraint. 32.(a) Fees shall be levied on distraint under this Act with reference to the amount due for which the distraint is made and according to the rates specified in the following table:- Sum distrained for Fees Rs. p. Under one rupee Twenty five paise One rupee and over but under five rupees Fifty paise Five rupees and over but under ten rupees One rupee Ten rupees and over but under fifteen rupees One rupee and fifty paise Fifteen rupees and over, but under twenty rupees Two rupees Twenty rupees and over, but under twenty-five rupees Two rupees and fifty paise Twenty-five rupees and over, but under thirty rupees Three rupees Thirty rupees and over, but under thirty-five rupees Three rupees and fifty paise Thirty-five rupees and over, but under forty rupees Four rupees Forty rupees and over, but under forty-five rupees Four rupees and fifty paise Forty-five rupees and over, but under fifty rupees Five rupees Fifty rupees and over, but under sixty rupees Six rupees Sixty rupees and over, but under eighty rupees Seven rupees and fifty paise Eighty rupees and over but under one hundred rupees Nine rupees One hundred rupees and over Ten rupees (b) Such fees shall include all expenses except,- (i) the cost of maintaining any live-stock or the expenses incidental to the detention of the distrained property; and (ii) the charge payable on account of staff kept in charge of the distrained property, namely, fifty paise daily for each member of the staff. 33. (a) The movable property of a defaulter may be distrained wherever it may be found within the State of Karnataka. (b) If it is necessary to distrain property outside the limits of the city, the Commissioner shall address his warrant to such public servant having local jurisiduction as the Government may by general or special order direct. (c) Such public servant shall execute the warrant himself or cause to be executed by some person subordinate to him. (d) Subject to the modifaction set out in the following clauses the provisions of rules 28 to 32 (both Inclusive) shall apply to the execution of the warrant and the disposal of the sale proceeds. (e) For the purposes of action under rule 28 no special order in writing of the Commissioner shall be required, but if the Public servant to whom the warrant is addressed charges any subordinate with the execution thereof, he shall furnish such subordinate with a special order in writing to that effect, and such subordinate shall then have authority to take action under the rule. (f) For the purpose of action under rule 31 the public servant to whom the warrant is addressed may, without further orders from the Commissioner, sell or direct the sale of the property seized and shall on completion of the sale transmit the proceeds to the Commissioner subject to such deduction, if any, as may be necessary to meet expenses incurred locally. (g) It shall be unlawful for such public servant himself or for any person subordinate to him to purchase directly or indirectly any property at any such sale. 34.If any tax due from any person remains unpaid in whole or in part at the end of the period specified in sub-rule (1) of rule 27 and such person has left the State of Karnataka and cannot be found, the said tax such part thereof as remains unpaid together with all sums payable or connection therewith shall be recoverable as if it were an arrear of land revenue. 35.(1) Every person who is prosecuted under sub-rule (2) of rule 27 shall be liable on proof to the satisfaction of the magistrate that he wilfully omitted to pay the amount due by him, pay a fine not exceeding twice the amount which may be due by him on account of,- (a)the tax and the warrant fee, if any, and (b)if distraint has taken place, the distraint fee and the expenses incidental to the detention and sale, if any, of the property distrained. (2)Whenever any person is convicted of an offence under sub-rule (1) the magistrate shall in addition to any fine which may be imposed recover summarily and pay over the corporation, the amount under the heads specified in clauses (a) and (b) of sub-rule (1), and may in his discretion also recover summarily and pay to the corporation such amount, if any, as he may fix as the costs of the prosecution. 36. Neither the Commissioner nor any corporation officer or servant shall directly or indirectly purchase any property at any sale of distrained property held under the foregoing rules. 37.In these rules, the expression 'tax' includes payments due by way of 1[cess under Section 103-B, property tax and penalty under Section 112 and penalty under Section 112- C] or by way of composition for a tax. 2001, dated 30-12-2002, w.e.f. 31-12-2002 1. Substituted for the words and figures “penalty under Section 112” by Notification No.UDD 188 MNU