Specification of smaller urban area

Specification of smaller urban area. (1) The Governor may subject to the provisions of section 9 and having regard to,— (a) the population of any area; (b) the density of population of such area; (c) the revenue generated for the local administration of such area; (d) the percentage of employment in non-agricultural activities in such area; (e) the economic importance of such area; and (f) such other factors as may be prescribed, specify, by notification, such area to be a smaller urban area and such smaller urban area shall be deemed to be a municipal area: Provided that no such area shall be so specified as a smaller urban area unless,— (i) the population of such area is not less than twenty thousand and not more than three lakhs; (ii) the density of population in such area is not less than one thousand five hundred inhabitants to one square kilometer of area; (iii) the revenue generated for local administration from such area from tax and non-tax sources in the year of the last preceding census is not less than Rs. 9 lakhs per annum or a sum calculated at the rate of Rs. 45 per capita per annum, whichever is higher; (iv) the percentage of employment in non-agricultural activities is not less than fifty per cent of the total employment; (2) The Governor may while specifying any area to be a smaller urban area in sub-section (1) may also specify such area to be a city municipal area, in case the population of such area is not less than fifty thousand or a town municipal area, in case the population is not less than twenty thousand but less than fifty thousand. Provided that if a District Head Quarters is situated in such smaller urban area the Governor may; specify such area to be a city municipal area even though it contains population of less than fifty thousand. Provided further that notwithstanding anything contrary contained in this Act where after specifying any area to be a city municipal area or town municipal area, its population is reduced on account of specifying Industrial Township areas, its status shall continue as such city municipal area or town municipal area, as the case may be till the area is specified afresh under this section. (3) [Omitted] (4) Notwithstanding anything contained in sub-section (1), no cantonment or part thereof shall be comprised in any such municipal area; (5) Every notification issued under sub-section (1), shall define the limits of the smaller urban area, or as the case may be, the industrial township to which it relates; (ii) the density of population in such area is not less than one thousand five hundred inhabitants to one square kilometer of area; (iii) the revenue generated for local administration from such area from tax and non-tax sources in the year of the last preceding census is not less than Rs. 9,00,000 per annum or a sum calculated at the rate of Rs. 45 per capita per annum, whichever is higher; (iv) the percentage of employment in non-agricultural activities is not less than fifty per cent of the total employment: [Deleted] (2) The Governor may while specifying any area to be a smaller urban area in sub-section (1) may also specify such area to be a city municipal area, in case the population of such area is not less than fifty thousand or a town municipal area, in case the population is not less than twenty thousand but less than fifty thousand. Provided that if a District Head Quarters is situated in such smaller urban area the Governor may; specify such area to be a city municipal area even though it contains population of less than fifty thousand. Provided further that notwithstanding anything contrary contained in this Act where after specifying any area to be a city municipal area or town municipal area, its population is reduced on account of specifying Industrial Township areas, its status shall continue as such city municipal area or town municipal area, as the case may be till the area is specified afresh under this section. (3) [Omitted] (4) Notwithstanding anything contained in sub-section (1), no cantonment or part thereof shall be comprised in any such municipal area; (5) Every notification issued under sub-section (1), shall define the limits of the smaller urban area, or as the case may be, the industrial township to which it relates; For section 102A of the principal Act, the following shall be substituted, namely:- “102A. Enhancement of property tax.- (1) Notwithstanding anything contained in section 101 and 102 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. In section 102 of the principal Act,(i) in sub-section (1),-(a) after the words “having regard to the”, the word “prevailing” shall be inserted; and (b) for the words “fifty percent of the market value guidelines”, the words “twenty five percent of the prevailing market value guidelines” shall be substituted.(ii) in sub-section (2), for the words “fifty percent of the market value guidelines”, the words “twenty five percent of the prevailing market value guidelines” shall be substituted. In the Karnataka Municipal Corporation Act, 1976 (Karnataka Act 14 of 1977),- (i) In section 112A, in sub-section (3), the following shall be inserted at the end, namely:- “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”. (ii) In section 112B,- (a) in sub-section (1), for the words “vacant lands” the words “vacant buildings sites” shall be substituted; and (b) after sub-section (1), the following shall be inserted, namely,- “(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 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. (ii) 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.” (iii) Section 112C and the entries relating thereto shall be omitted.