Power to include or exclude areas in or from smaller urban area and the effect thereon

(1) The Governor may, after consulting the municipal council and subject to the provisions of section 9 and having regard to the provisions of clauses (a) to (f) of sub-section (1) of section 3, by notification,— (a) include within a smaller urban area any local area adjacent thereto; (b) exclude from a smaller urban area any local area comprised therein. (2) Every such notification shall define the limits of the local area to which it relates. (3) When a local area is included in any smaller urban area, this Act and all notifications, rules, bye-laws, orders, resolutions, directions and powers (including any tax levied) issued, made or conferred under this Act or any other law applicable to such smaller urban area shall apply to the said area from the date of publication of the notification under sub-section (1). (4) Save as otherwise provided in this Act or any other law for the time being in force when a local area is excluded form any smaller urban area,— (i) the rights and liabilities of the municipal council in such area shall vest in the Government; and (ii) the Government shall after consulting the municipal council determine what portion of the municipal fund and all other property vested in the municipal council shall vest in the Government for the benefit of the inhabitants of the local area, and how the liabilities of the municipal council shall be apportioned between the municipal council and the Government. 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.

(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 Council 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 the State Government to direct an earlier revision of property tax. Explanation: “Financial year” shall mean the year commencing on the first day of April.” (1) If any difficulty arises in giving effect to the provisions of this Act the Government may by order, published in the official Gazette, as the occasion may require, do anything which appears to it to be necessary to remove the difficulty. (2) Every order made under this section shall, as soon as may be after it is so made, be laid before the House of State Legislature.