Description and class of tax on buildings or land or both

(1) A tax on buildings or land or both shall be levied by the Corporation, by way of a resolution, at such rates not exceeding, ten percent of the [taxable capital value],- (a) for residential buildings,- (b) for commercial buildings (c) for vacant land (2) The rate of tax on buildings or land or both determined by the Corporation by resolution under sub section (1) shall stand enhanced every year by five percent. (3) The tax on buildings or vacant land or both shall be paid by the owners of such property. The tax on buildings or vacant lands or both shall be subject to the prior payment of the land revenue, if any, due thereon to the Government as a first charge upon the said buildings or vacant lands or both and upon the movable property, if any, found within or upon such buildings or lands and belonging to the person liable to such tax. (4) 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 Bruhat Bengaluru Mahanagara Palike area shall be levied every year in the following manner. (5) The property tax shall be levied by the Bruhat Bengaluru Mahanagara Palike by resolution passed at such percentage not more than ten percent of the taxable capital value of a building, vacant land or both. The taxable capital 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 the depreciation of three percent per year depending on the age of a building. The property tax assessed and levied under this section, once notified by the Government, shall stand revised as and the property, building or land value revised by notification under section 45B of the Karnataka Stamp Act, 1957 (Karnataka Act 34 of 1957) by the Government. Explanation: For the purpose of this section, “Unit Area Value” means the guidance value of the property or the land published under section 45B of the Karnataka Stamp Act, 1957 (Karnataka Act 34 of 1957) and with respect to the building standing on a plot it shall mean the value of building as may be assessed based on the per square foot construction cost minus the depreciation at the time of assessment: 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, subject to such condition and in such circumstances as may be notified, the Chief Commissioner, Bruhat Bengaluru 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,- (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 Chief Commissioner, Bruhat Bengaluru Mahanagara Palike; (b) an area used as parking area in a non-residential building and being charged for its use by the owner or the occupier: and (c) any other class of building or structure as he deems fit. Provided also that, the depreciation shall be capped at a maximum of sixty percent. Provided also that, the vacant land shall be assessed at a rate not less than 0.025 percent (Rs. 25 per lakh) and not more than five percent of the taxable capital value of the land. Provided also that, after the taxable capital value based property tax system is brought into force and there is no revision of the values of the properties or land under section 45B of the Karnataka Stamp Act, 1957 (Karnataka Act 34 of 1957) in a year, the property tax shall stand enhanced by five percent every such year. Provided also that, as and when the Government notifies value of land and building under section 45B of Karnataka Stamp Act, 1957 (Karnataka Act 34 of 1957) the revised property tax rates based on the new revised value of properties or land shall be calculated and compared with the prevailing property tax rates and the higher of the two shall be adopted. (6) The Bruhat Bengaluru 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. (7) 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 nonresidential building as may be notified by the Government on the recommendation of the Corporation. (8) The person primarily liable to pay the property tax, shall pay the tax in two equal instalments through demand draft or E-Payment. The first being before 30th May and second by 29th November of each financial year. However, the owner or occupier or person primarily liable to pay property tax may choose to pay in one installment: Provided 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 he shall be allowed a rebate of five per cent on the tax payable by him: Provided further that the 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 Five percent rebate in respect of any financial year. Provided also that, the person primarily liable to pay the property tax may, at any time subsequent to filing of the return and payment of the property tax, suo-motu revise his own return upwards thereby resulting in more property tax payment to the Corporation, the said revision shall be liable to the same interest and penalty as is applicable for the revision done under sub-section (15) by the Corporation. The revised return shall be treated as the return by the property tax payer and the Corporation reserves the right to revise it under sub-section (15). (9) Before any owner or occupier submits any return under sub-section (7), he shall pay in advance half-yearly tax calculated or the full amount of the property which the tax became due, pay an interest at a rate of 15% per annum on the unpaid tax, calculated until the date when the tax is paid.

Provided also that after end of said twelve months that is from second year after the end of the financial year in which the tax became due, any tax still unpaid shall pay a penalty equal to the unpaid tax plus the unpaid tax with interest on the unpaid tax at a rate of 9% per annum.

Provided also that in case of existing defaulters the said twelve month period shall be deemed to start from 1.4.2024 and any tax out of the said dues still unpaid as on 1.4.2025, shall pay a penalty equal to the unpaid tax plus the unpaid tax with interest on the unpaid tax at a rate of nine percent per annum thereafter. Provided also that, as a one-time measure, in order to bring all the tax defaulters, un-assessed properties and those liable for re-assessment up-to-date with respect to their tax payments, there shall be following relaxations for the payments made until 30th November 2024, towards the unpaid tax, the un-assessed property and the property paying for re-assessment, namely:- (i) the penalty payable shall be Rs. 100 per year; and (ii) the interest payable shall be waived off. Provided also that, the properties which have already availed the benefits of one time measure under this clause before the commencement of the Bruhat Bengaluru Mahanagara Palike (Second Amendment) Act, 2024, shall also be eligible for above relaxations and any excess penalty paid by such properties shall be readjusted against any outstanding demand or future demand of the Corporation on the same property or the same owner. Provided that this provision shall be applicable prospectively. (c) if upon inspection and re-assessment as made under this section by the Chief 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 Chief 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 Chief 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. (16) The assessment of un-assessed properties or the reassessment of the properties already paying the property tax under this section may be made at any time when evasion is noticed or justified circumstances arise for the same: Provided that in case of residential properties and the properties with a single ID in the Property Tax registers of the Bruhat Bengaluru Mahanagar Palike which have mixed use as residential and non-residential, the arrears of the property tax for the under-assessed or un-assessed properties, the applicable penalties and the interest payable, shall be limited to five years even if the un-assessment or the under-assessment of property tax exceeds five years (17) 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: Provided that in case of any change of use, alteration or variation to the property, the owner or occupier shall report such changes within six months from the date of completion or occupation whichever is earlier along with the revised return and tax: Provided also that nothing contained in this section shall be deemed to affect the power of the Government to direct an earlier revision of property tax. (18) The Chief Commissioner shall have power to clarify any doubt as to classification of zones and class of property. The decision of the chief Commissioner in this regard shall be final. (19) Notwithstanding anything contained in this Act, a concession in payment of tax on building or vacant land or both, wherein any such socially or ecologically beneficial scheme, as may be identified for the purposes of this section by the corporation or the Government, is being implemented, may be given to such extent not more than fifty percent of the tax payable in respect thereof as the Corporation may determine. Explanation.-For the purposes of this section, “ecologically beneficial scheme” includes rain water harvesting system, vermi composting, use of solar energy and other non-conventional sources of energy, recycling and reuse of waste water, or any other scheme for promoting environment friendly and ecologically beneficial building construction or the like as the Corporation or the Government may identify. (20) The Corporation shall provide each person who pays property tax an acknowledgement or Khata for the payment of such tax, and such acknowledgement or Khata provided shall be distinct for lawful and unlawful buildings or vacant land and the format of such acknowledgement or Khata shall be prescribed from time to time under the rules. (21) The Chief Commissioner shall maintain a record, in such format as may be prescribed, 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. (22) The Chief Commissioner shall also maintain a list of defaulters in payment of property tax and publish the same on website of the corporation. (23) For the purposes of maintenance of records under sub section (22), the Chief Commissioner may issue such directions to the zonal commissioner as required and also direct the maintenance of such records by each zonal committee. (2) Notwithstanding anything contained in sub-section (1) where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of or is attributable to any neglect on the part of any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. Explanation.- For the purpose of this section,- (a) "company" means a body corporate, and includes a firm, a society, an Association of persons; (b) "director" in relation to a firm means a partner in the firm.