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Local laws Karnataka Directorate of Municipal Administration Karnataka Municipal Corporations Act, 1976

Amendment in Karnataka Municipal Corporations Act, 1976

18-Feb-2021 | NO: DPAL 07 SHASANA 2021

Directorate of Municipal Administration, Karnataka has enforced Karnataka Municipal Corporations (Amendment) Act, 2021. Key Highlights of which are as follows:
1. Amendment of section 108- Property tax shall be levied in case of :
a) residential building and buildings other than commercial at such percentage of minimum 0.2% (rupees two per thousand) and not more than 1.5% (rupees fiftteen per thousand) of taxable capital value of the building.
b) Vacant land at 0.2% (rupees two per thousand) and not more than 0.5% (rupees five per thousand) of taxable capital value of the land.
c) Other provisions for Vacant land i.e. sub clauses (i), (ii) and (iii) have been ommitted.
2. Amendment of Section 109- Changes have been made in the method of assessment of property tax in which prevailing market guidelines will be taken for taxable capital value of land and taxable capital value of the building will be 25% of the prevailing market value guidelines instead of 50% of prevailing market value guidelines.
3. Amendment of Section 109A- The property tax shall stand enhanced by 3% for every financial year in which no revision of guidance value. Earlier it was enhanced by 15%. Municipal Corporation may enhance property tax upto 5% instead of 30%.

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