The State Government of Karnataka vide its notification dated 1st February 2021 has published the Karnataka Municipalities (Second Amendment) Act, 2021 to further amend the Karnataka Municipalities Act, 1964.
Through this amendment, the government has enhanced the property tax to 30% in which no revision of guidance value is made, Provided that, the Municipal Council may enhance such property tax up to 5% for every financial year and different rate of enhancement may be made to different areas and different classes of buildings and lands.
The property tax shall be levied in case of,-
(a) Commercial building at such percentage not being less than 0.5 percent, not more than three percent of taxable capital value of the building.
(b) residential building and buildings other than commercial at such percentage not being less than 0.3 percent and not more than one per cent of taxable capital value of the building.
(c) vacant land measuring not above one thousand square meters, at not less than 0.1 per cent not more than 0.5 percent of taxable capital value of land.
Further, the percentage so fixed may be different in different areas and for different classes of buildings and lands.
