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The Karnataka government has tabled a bill to impose property tax on unauthorised buildings

Synopsis

The Karnataka government introduced two bills to enhance revenue and prevent water theft. The Karnataka Municipalities Bill, 2024, imposes fines of up to INR 50,000 and 15-day imprisonment for officials failing to collect property tax and double tax on unauthorised buildings. The Karnataka Irrigation Bill increases water theft penalties to INR 2 lakh and two-year imprisonment, requiring government permission for drilling near canals. These amendments aim to improve compliance and resource management, ensuring better adherence to regulations and preventing illegal activities, thus enhancing accountability and contributing to the state's development and sustainability.

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The Karnataka government introduced two significant bills in the legislative assembly this month, aiming to enhance revenue and prevent water theft. The Karnataka Municipalities and Certain Other Law (Amendment) Bill, 2024, and the Karnataka Irrigation (Amendment) Bill are designed to hold officials accountable for lapses in property tax collection and curb water theft from irrigation canals.

The municipalities bill, presented by Urban Development Minister BS Suresh (Byrathi), seeks to impose fines of up to INR 50,000 and imprisonment for 15 days on officials who fail to collect property tax dues. According to the bill, "Any officer or employee of the municipality who fails to collect property tax dues under assessment of property tax or any financial causes to the municipality shall be fined up to INR 50,000 in each case and may also be punished with simple imprisonment for 15 days."

Additionally, the bill empowers municipalities to levy property tax on unauthorised buildings at double the tax rate in the first year. However, buildings illegally erected on government land or land controlled by local bodies or government organisations are exempt from property tax. The bill introduces penal provisions against officials who issue property identification numbers or khata for unlawfully formed plots and buildings.

Municipalities are authorised to levy and collect property tax from buildings constructed in violation of building bylaws or in unauthorised layouts. These properties will be subject to "double the tax payable for the first year, and only the property tax shall be levied for the subsequent years." However, this collection of property tax "does not confer any right to regularise violation made, or title, ownership or legal status to such building or vacant land."

The second bill, introduced by Water Resources Minister DK Shivakumar, aims to increase the penalty for water theft to INR 2 lakh from INR 1,000 and extend the imprisonment term to two years from one year. The bill defines violations such as piercing or cutting canals or pipes, inserting a pipe by piercing or cutting a canal, or installing a machine or any other equipment in the canal, causing damage to its stability or safety.

Irrigation water users intending to drill or dig wells or create storage ponds within 500 metres of a canal must seek government permission. Existing groundwater users within this proximity to lift irrigation systems or canals have six months to register their operations under the new guidelines.

These amendments highlight the government's effort to improve compliance and resource management. By imposing stricter penalties and clearer guidelines, the government aims to ensure better adherence to regulations and prevent illegal activities that compromise infrastructure and resource allocation.

The introduction of these bills underscores the government's commitment to addressing inefficiencies and illegal practices in the collection of property taxes and the use of irrigation water. This move is expected to enhance accountability among officials and deter illegal activities that undermine municipal and irrigation systems.

In conclusion, the Karnataka government is taking decisive steps to strengthen its regulatory framework with these new bills. By imposing stricter penalties and clearer guidelines, the government aims to ensure better compliance and resource management, ultimately contributing to the state's overall development and sustainability. Interested parties are encouraged to stay informed and comply with the new regulations to avoid penalties and contribute to the state's progress.

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