Karnataka Municipalities and Certain Other Law (Amendment) Act, 2024

The Government of Karnataka has enacted significant changes to municipal governance, the Act may be called the Karnataka Municipalities and Certain other Law (Amendment) Act, 2024.This new legislation, which received the Governor’s assent on September 5, 2024, and was published in the Karnataka Gazette Extra-ordinary on September 10, 2024, introduces crucial amendments to the Karnataka Municipalities Act, 1964, and the Karnataka Municipal Corporations Act, 1976.

1. Introduction to the Amendments

The Karnataka Municipalities and Certain Other Law (Amendment) Act, 2024, seeks to enhance the efficiency and transparency of municipal governance. The amendments address issues related to property tax assessments, land and building regulations, and enforcement mechanisms.

2. Key Amendments to the Karnataka Municipalities Act, 1964

Section 105 – Assessment Timelines

One of the most notable changes is in Section 105, Sub-section (3), which stipulates that assessments for returns submitted from the financial year 2023-24 for the past six years must be concluded within one year. This provision aims to expedite the assessment process and reduce delays in property tax evaluations.

Section 106 – Definition and Regulations of Building Sites

• Sub-section (1): The term “vacant lands” has been replaced with “vacant building sites,” aligning terminology with current urban planning practices.
• New Sub-sections (1A) and (1B):
  • (1A): Prior approval from the relevant planning authority is now required before issuing new Property Identification Documents (PID) or khata for building sites. This measure ensures that new constructions comply with the sanctioned layout plans under the Karnataka Town and Country Planning Act, 1961.
    • If the area falls under a local planning authority, approval must be obtained under Section 17 of the Karnataka Town and Country Planning Act.
    • For areas outside planning authority jurisdictions, approval must be sought from the Director of Town and Country Planning.
    • Failure to comply will result in penalties for municipal officers.
  • (1B): Property tax can now be levied on buildings or vacant lands created before the Act’s provisions. However, properties constructed on government land or lands belonging to local bodies will not be subject to this tax. The tax for such properties will be doubled for the first year and recorded separately. Importantly, this tax does not confer any rights to regularize illegal constructions.

Section 107 – Omission

Section 107, along with its related entries, has been omitted, reflecting an overhaul in how certain municipal functions are managed.

Section 143 – Defaulter Penalties

Amendments to Section 143 stipulate that defaulters must be addressed within two months from the issuance of a warrant, streamlining enforcement processes.

Section 154 – Financial Penalties

The amended Section 154 introduces fines for municipal officers who fail to collect property tax dues. The fine can be up to ₹50,000 per case, and officers may face simple imprisonment for up to 15 days.

3. Key Amendments to the Karnataka Municipal Corporations Act, 1976

Section 112A – Assessment Timelines

Similar to the Municipalities Act, Section 112A, Sub-section (3) of the Municipal Corporations Act mandates that assessments for returns from the financial year 2023-24 must be completed within one year.

Section 112B – Building Site Regulations

• Sub-section (1): “Vacant lands” has been replaced with “vacant building sites,” aligning with updated urban planning terminology.
• New Sub-sections (1A) and (1B):
  • (1A): Requires prior approval from the relevant planning authority before issuing new PID or khata for building sites. The compliance requirements are similar to those in the Municipalities Act, including adherence to layout plans and penalties for non-compliance.
  • (1B): Similar provisions for property tax apply as in the Municipalities Act, with tax levied on properties created before the Act’s commencement, doubled for the first year. Records must distinguish between lawful and unlawful properties taxed.

Section 112C – Omission

Section 112C and its related entries have been removed, indicating a shift in regulatory focus.

4. Power to Remove Difficulties

To address any implementation challenges, the Act grants the Government the power to issue orders to resolve difficulties that arise. These orders will be published in the official Gazette and laid before the State Legislature, ensuring transparency and legislative oversight.

Effective Date: September 10^th 2024