Amendment status not verified — confirm the current text below against the official source.
Description and class of tax on buildings or land or both.-(1) A tax on buildings or land or both shall be levied by the Corporation, by way of a resolution, at such rates not exceeding, ten percent of the 1[taxable capital value]1,- (a) for residential buildings,- (b) for commercial buildings (c) for vacant land (2) The rate of tax on buildings or land or both determined by the Corporation by resolution under sub section (1) shall stand enhanced every year by five percent. (3) The tax on buildings or vacant land or both shall be paid by the owners of such property. The tax on buildings or vacant lands or both shall be subject to the prior payment of the land revenue, if any, due thereon to the Government as a first charge upon the said buildings or vacant lands or both and upon the movable property, if any, found within or upon such buildings or lands and belonging to the person liable to such tax. (4) Notwithstanding anything contrary contained in this Act, subject to such exemptions provided under this Act and such rules as may be prescribed, the property tax of all buildings or vacant lands or both situated within the city of Bruhat Bengaluru Mahanagara Palike area shall be levied every year in the following manner. 1[(5) The property tax shall be levied by the Bruhat Bengaluru Mahanagara Palike by resolution passed at such percentage not more than ten percent of the taxable capital value of a building, vacant land or both. The taxable capital value of a building, vacant land or both shall be calculated by multiplying the corresponding “unit area value” with the total built-up area of a building, vacant land or both for ten months, minus the depreciation of three percent per year depending on the age of a building. The property tax assessed and levied under this 67 section, once notified by the Government, shall stand revised as and the property, building or land value revised by notification under section 45B of the Karnataka Stamp Act, 1957 (Karnataka Act 34 of 1957) by the Government. Explanation: For the purpose of this section, “Unit Area Value” means the guidance value of the property or the land published under section 45B of the Karnataka Stamp Act, 1957 (Karnataka Act 34 of 1957) and with respect to the building standing on a plot it shall mean the value of building as may be assessed based on the per square foot construction cost minus the depreciation at the time of assessment: Provided that, no such “unit area value” shall come into force unless it is previously published in the official Gazette for the information of the persons likely to be affected and an opportunity is provided to make representation or suggestions, if any, in this regard: Provided further that, subject to such condition and in such circumstances as may be notified, the Chief Commissioner, Bruhat Bengaluru Mahanagara Palike, may, in lieu of the tax under sub-section (2), fix any lumpsum amount as annual tax, irrespective of zonal classification, in respect of,- (a) a built-up area having less than 300 sq.ft., in a slum area declared as such by the Karnataka Slum Clearance Board or the Chief Commissioner, Bruhat Bengaluru Mahanagara Palike; (b) an area used as parking area in a non-residential building and being charged for its use by the owner or the occupier: and (c) any other class of building or structure as he deems fit. Provided also that, the depreciation shall be capped at a maximum of sixty percent. Provided also that, the vacant land shall be assessed at a rate not less than 0.025 percent (rupees twenty five per lakh) and not more than five percent of the taxable capital value of the land. Provided also that, after the taxable capital value based property tax system is brought into force and there is no revision of the values of the properties or land under section 45B of the Karnataka Stamp Act, 1957 (Karnataka Act 34 of 1957) in a year, the property tax shall stand enhanced by five percent every such year. Provided also that, as and when the Government notifies value of land and building under section 45B of Karnataka Stamp Act, 1957 (Karnataka Act 34 of 1957) the revised property tax rates based on the new revised value of properties or land shall be calculated and compared with the prevailing property tax rates and the higher of the two shall be adopted.]1