The State Government of Karnataka vide its gazette notification dated 19th January 2021 has published the Karnataka Municipalities (Amendment) Ordinance, 2021 to amend the Karnataka Municipalities Act, 1964.
The ordinance amends section 101 which deals with description and class of property tax in which under sub-section 3 the Municipal Council shall, fix the property tax at such percentage of the taxable capital value of the buildings having regard to the location, type of construction of the building, nature of use to which the building is put, age of the building and such other criteria as may be prescribed, Provided that, the vacant land appurtenant to the building, up to one thousand square feet shall be exempted and more than one thousand square feet shall be levied with property tax on vacant land.
Further section 102A, which specifies the enhancement in the property tax, has been substituted as follows:
Notwithstanding anything contained in section 101 (description and class of property) and 102 (method of assessment of property tax) the property tax assessed and levied under either provision shall be assessed in the year of revision of guidance value of property under section 45B of the Karnataka Stamps Act, 1957. The property tax shall stand enhanced by three percent for every financial year in which no revision of guidance value is made.
