Karnataka Municipal Amendment Bill, 2026 proposes advertisement fee regime, mandatory permissions, stricter enforcement and validates past levy and recovery of advertisement charges

The Government of Karnataka has introduced the Karnataka Municipalities and Certain Other Law (Amendment) Bill, 2026 (“Bill”) to amend the Karnataka Municipalities Act, 1964 and the Karnataka Municipal Corporations Act, 1976 (“Principal Acts”). The Bill seeks to overhaul the regulatory framework governing advertisements within municipal and corporation limits by shifting from a tax-based regime to a structured fee-based system, strengthening enforcement mechanisms and validating past levies and recoveries..

Key Proposals:

1. The Bill proposes to replace the existing tax/fee framework on advertisements with a formalised “advertisement fee” regime, payable on all advertisements displayed on land, buildings, structures or in public view, with rates to be determined by municipal authorities subject to Government-prescribed limits.
2. The Bill proposes that no advertisement can be displayed, erected or retained without prior written permission of the municipal council or Commissioner, and such permission will be denied where applicable bye-laws are violated or prescribed fees remain unpaid.
3. The Bill proposes strengthened enforcement powers enabling authorities to remove or demolish unauthorised advertisements, including entry into premises, issuance of notices and recovery of removal costs from owners or occupiers.
4. The Bill proposes imposition of interest at the rate of 18% per annum on delayed payment of advertisement fees or penalties, along with additional penalties and fines for unauthorised advertisements, which may be recovered on the spot.
5. The Bill proposes that payment of penalty or fine will not regularise unauthorised advertisements, and such advertisements will continue to be liable for immediate removal or demolition.
6. The Bill proposes alignment of recovery mechanisms for advertisement dues with property tax recovery procedures, including issuance of demand and show cause notices and recovery through coercive measures such as seizure and sale of materials.
7. The Bill proposes deletion of existing schedules prescribing advertisement tax rates and removal of provisions relating to collection of advertisement tax, thereby consolidating the regime under the new fee-based framework.
8. The Bill proposes to empower authorities to prescribe detailed conditions for grant, renewal, suspension or withdrawal of advertisement permissions through byelaws.
9. The Bill proposes retrospective validation of levy, assessment and collection of advertisement-related taxes, fees, cess and related charges, including actions taken by authorities, and bars claims for refund of such amounts.

Source:  Karnataka Gazette