The Karnataka Municipalities and Certain Other Law (Amendment) Act, 2024 was published in the official gazette on 10 September 2024, following the Governor’s assent on 5 September 2024. This significant legislation introduces several changes to the Karnataka Municipalities Act, 1964, and the Karnataka Municipal Corporations Act, 1976. The amendments aim to streamline municipal procedures, particularly regarding property assessments, the issuance of Property Identification Documents (PID) or khata, and the imposition of property taxes. These changes are now effective across Karnataka.
Key Amendments to the Karnataka Municipalities Act, 1964
One of the major amendments involves Section 105, which mandates the conclusion of assessments for returns submitted for the past six financial years, starting from 2023-24. These assessments must now be completed within a one-year timeframe, ensuring a faster and more efficient process for property assessments.
Regulation of Vacant Building Sites and Layout Plans
Under Section 106, the term “vacant lands” has been replaced with “vacant building sites,” to more accurately reflect the municipal administration’s scope. The amendment also introduces stricter regulations on the issuance of new PIDs or khata for vacant building sites. Before any PID or khata is issued, the layout plans must receive prior approval from the relevant planning authority, either the Municipal Commissioner or an authorized officer. This new procedure is designed to enforce strict compliance with town planning regulations.
Property Identification in Municipal Areas
In areas covered by a local planning authority, a sanctioned layout plan must be obtained in accordance with Section 17 of the Karnataka Town and Country Planning Act, 1961. For areas not under a local planning authority, the Director of Town and Country Planning or an authorized officer must approve the layout plan. No new PIDs or khata will be issued without these approvals.
Property Tax Collection and Imposition
The amendment also authorizes municipalities to impose property taxes on buildings and vacant land, even if they have been constructed in violation of building byelaws or are located in unauthorized layouts. This provision applies only to properties established before the enactment of this law. However, it is explicitly stated that the imposition of such taxes does not confer any legal status or ownership rights to the properties in question.
For such properties, the initial tax levied will be double the regular tax for the first year. In subsequent years, standard property tax rates will apply. However, no new properties can be added to this tax regime after the commencement of this amendment.
Penalties and Additional Changes
The amendment deletes Section 107, which previously dealt with penalties for unlawful buildings. It also increases the payment period for property tax demands to two months under Section 143 and permits municipalities to recover property tax and rent arrears through the Deputy Commissioner under Section 154.