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Local laws Karnataka Directorate of Municipal Administration Karnataka Municipalities Act, 1964

Amendment in Karnataka Municipalities Act, 1964

18-Feb-2021 | NO: DPAL 06 SHASANA 2021

Directorate of Municipal Administration, Karnataka has enforced Karnataka Municipalities (Second Amendment) Act, 2021. Key Highlights of which are as follows: 1. Amendment of section 101- 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 of taxable capital value of the land.Words ' measuring not above one thousand square meters' have been ommitted. c) Other provisions for Vacant land i.e. clause (d) and (e) have been ommitted. 2. Amendment of Section 102- 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 102A- 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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