The Department of Parliamentary Affairs and Legislation Secretariat, Karnataka, has, through a Gazette Notification dated 21st December, 2020 issued the Bruhat Bengaluru Mahanagara Palike Act, 2020 (“BBMP Act”) in order to provide for an independent legislation for the purposes of improving decentralization, integration of public participation at various levels of municipal governance and to ensure efficient decision making by the Bruhat Bengaluru Mahanagara Palike.
The provisions of the Act will come into force on such date as the State Government may, by notification, appoint on this behalf.
Please note that the provisions of the Karnataka Municipal Corporations Act, 1976 pertaining to the Bruhath Bengaluru Mahanagara Palike has been repealed through the BBMP Act.
Key Takeaways:
1. Taxes:
(a) The Corporation has the power to impose the following taxes at rates not exceeding those specified in the BBMP Act-
• A tax on buildings or vacant land or both situated in the jurisdiction of the corporation.
• A tax on profession, trades, callings and employments.
• A tax on entertainments and amusements.
• A duty on certain transfers of property in the form of additional stamp duty.
• Any other taxes which may be assigned by law for the assessment and collection by the Corporation.
[“Corporation” means the Bruhath Bengaluru Mahanagara Palike established in accordance with the provisions of this Act]
2. Levy of Cess:
The corporation may, in addition to the tax levied under this Act, levy and collect the following cesses namely:-
• Infrastructure cess at such rate but not exceeding ten percent as notified by the Government, which may be prescribed on every motor vehicle suitable for the use on roads within the city and different rates may be prescribed in different classes of motor vehicles;
• Solid waste management cess at such rate but not exceeding ten percent of the property tax as notified by the Government, on every owner or occupier of land or building or both in the city for the purpose of collection, transportation and disposal of solid waste and different rates may be prescribed in different classes of lands or buildings or in different areas;
• Levy Urban Transport Cess at such rate as notified by the Government
3. The BBPM Act also provides the description and class of tax on buildings or land wherein it is mentioned that tax on buildings or land or both will be levied by the Corporation, by way of a resolution, at such rates not exceeding, ten percent of the taxable annual value,-
(a) for residential buildings,
(b) for commercial buildings
(c) for vacant land
Please note that the tax on buildings or vacant land or both will be paid by the owners of such property. The tax on buildings or vacant lands or both will 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. The provisions regarding payment of property tax and the demand of for the payment of tax and recovery of taxes has also been provided.
5. Fee on advertisement.-
Every person who erects, exhibits, fixes or retains, upon or over any land, building, wall or structure any advertisement or who displays any advertisement to public view in any manner whatsoever, in any place whether public or private, has to pay on every advertisement which is so erected, exhibited, fixed, retained or displayed to public view, a fee calculated at such rates and in such manner and subject to such exemptions, as the corporation may, with the approval of the Government, by resolution determine.
6. Entertainment Tax:
The BBMP Act has provisions of levy of entertainment tax wherein entertainment tax will be levied and collected by the Corporation over any ticket based entertainment, non-ticket based entertainment and televised entertainment.
7. The BBMP Act covers provisions regarding public streets, owner’s obligation when dealing with land as building sites, making of new private streets etc.
8. The BBMP Act provides for the establishment of the of Bruhat Bengaluru Mahanagara Palike and about its constitution and elections and also has provisions regarding:
• Corporation officers and servants and their appointments and conditions of service
• Powers and functions of the Corporation
• Proceedings of the Corporation and standing committees
• Power of the Corporation to declare certain services as essential services.
• Properties of the Corporation-
9. The following properties will belong to the corporation unless specifically owned and controlled by the Government:
(a) All public parks, playground and open spaces reserved for ventilation; and (b) All public lamps, lamp post apparatus connected therewith appertaining thereto, all gates, markets, slaughterhouses, manure and refuge depots and public buildings of every description.
All properties specified above and not specifically owned and controlled by the Government will belong to the corporation and be subject to such direction, management and control of the corporation.
10. Maintenance of the property register:
(a) The Chief Commissioner has to maintain a property register of the corporation, which will consist of a list of immovable properties under the ownership, control or management of the corporation, location and such other details as may be specified.
(b) The zonal commissioner has to maintain a property register of the concerned zone, comprising details of such immovable property and update such list periodically and convey to the Chief Commissioner that such updation may be carried out in the property register of the corporation.
Source: Department of Parliamentary Affairs and Legislation Secretariat
