Section 105 of THE KARNATAKA MUNICIPALITIES ACT, 1964

property tax under this Act shall submit every year to the Municipal Commissioner or the Chief Officer, as the case may be or the officer authorised by the Municipal Commissioner or the Chief Officer in this behalf (hereinafter referred to as authorised officer), a return in such form, within such period and in such manner as may be prescribed:

Provided that, if the owner or occupier who is liable to pay tax files his returns and also

pays the property tax which is due within one month from the date of commencement of the financial year he shall be allowed a rebate of five percent on the tax payable by him.

1[Provided further that, for the financial year 2020-2021 if the owner or occupier who is liable to pay tax files his returns and also pay tax which is due within one month from the date of commencement of the Karnataka Municipalities and Certain Other Law (Amendment) Act, 2021 he shall also be allowed a rebate of five percent on the tax payable by him.

↩1.Inserted by Act 07 of 2021 w.e.f. 19.02.2021

Provided also that, in case property tax is paid in full in the financial year 2020-21 before the commencement of the Karnataka Municipalities and Certain Other Law (Amendment) Act, 2021, the rebate so allowed shall be adjusted in payment of tax for the future years.]

1. (2)Before any owner or occupier submits any return under sub-section (1) he shall pay in advance full amount of the property tax payable by him on the basis of such return and shall furnish along with the return satisfactory proof of payment of such tax and the tax so

payable shall for the purposes of this Act be deemed to be the property tax due from such

owner or occupier for the purpose of Chapter VII. After the final assessment is made the amount of property tax so paid shall be deemed to have been paid towards the property tax finally assessed.

1. (3)If the Municipal Commissioner or the Chief Officer, as the case may be or the authorised officer is satisfied that any return submitted under sub-section (1) is correct and complete, he shall assess the property tax in accordance with the provisions of this Act and

the rules made thereunder and shall send a copy of the order of assessment to the owner

or occupier concerned. Assessment under this sub-section shall be concluded within one year from the date of submission of return under sub-section (1).

¹[Notwithstanding anything contained in this sub-section the assessment made under this sub-section for any return submitted under sub-section (1) for the last six financial years, commencing from the financial year 2023-24, shall be concluded within one year.]

↩1.Inserted by Act 43 of 2024 w.e.f. 10.09.2024.

1. (4)If any owner or occupier fails to submit a return as required under sub-section (1) ¹[or fails to pay in advance full amount of property tax as required under sub-section (2)]

submits an incomplete or incorrect return, the Municipal Commissioner or the Chief Officer,

as the case may be or the authorised officer, shall cause an inspection of the

²[vacant land and building] and may also cause such local enquiry as may be considered necessary, and based on such inspection and information collected, he shall assess the property tax and

↩1.Inserted by Act 31 of 2003 w.e.f. 16.6.2003.

↩2.Substituted by Act 31 of 2003 w.e.f. 16.6.2003.

send a copy of the order of assessment to the owner or occupier concerned.

1. (5)When making an assessment of tax under sub-section (3) or (4), the Municipal

↩1.Substituted by Act 31 of 2003 w.e.f. 16.6.2003.

¹[(a) at the rate of two per cent per month of the amount of property tax assessed and due in case of failure to pay amount of property tax due and to submit a return] ;

1. (b)not exceeding two times the amount of difference between the tax assessed and the tax paid along with his return in the case of submitting knowingly an incorrect or incomplete return. ¹[(c) One hundred rupees in case of faliure to submit return after payment of property tax in full]

↩1.Inserted by Act 31 of 2003 w.e.f. 16.6.2003.

1. (6)The owner or occupier may either accept the property tax assessed and the penalty

if any, levied or send objections to the Municipal Commissioner or the Chief Officer, as the

case may be, or the authorised officer within a period of thirty days from the date of receipt of a copy of the order under sub-section (3) or (4).

1. (7)The Municipal Commissioner or the Chief Officer, as the case may be, or the authorised officer shall consider the objections and pass such order either confirming or revising the assessment of such tax and penalty if any, within a period of sixty days from the date of filling objections and a copy of the order shall be sent to the owner or occupier concerned.
2. (8)The property tax shall be paid by the person primarily liable within ninety days after

the commencement of every year,

¹[If default is made in making payment the person liable to pay shall pay a penalty at the rate of two percent per month of the amount of tax remaining unpaid after the expiry of the period]

↩1.Inserted by Act 31 of 2003 w.e.f. 16.6.2003.

↩2.Inserted by Act 07 of 2021 w.e.f. 19.02.2021

²[Provided that, for the financial year 2020-2021, the property tax shall be paid by the person primarily liable, within one month after the commencement of the Karnataka Municipalities and Certain Other Law (Amendment) Act, 2021.]

1. (9)In order to facilitate filing of return by an owner or occupier of any ¹[building or vacant land] and assessment of property tax the Municipal Council shall from time to time issue guidelines for determining the taxable capital value and property tax payable thereon.”

↩1.Substituted by Act 31 of 2003 w.e.f. 16.6.2003.