The government of Karnataka proposes a bill to tax unapproved buildings’ property.

BENGALURU: On Monday, the Karnataka government introduced two crucial bills in the legislative assembly aimed at increasing revenue and preventing 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 Karnataka Municipalities Bill, presented by Urban Development Minister BS Suresh (Byrathi), proposes fines of up to Rs 50,000 and a 15-day imprisonment for officials who fail to collect property tax dues.

“Any officer or employee of the municipality who fails to collect property tax dues under the assessment of property tax or any financial causes to the municipality shall be fined up to Rs 50,000 in each case and may also be punished with simple imprisonment for 15 days,” the bill states.

The bill also empowers municipalities to levy property tax on unauthorized buildings at double the rate for the first year. However, buildings illegally erected on government land or controlled by local bodies or government organizations are exempt from property tax.

Penalties have been introduced for officials who issue property identification numbers or khata for unlawfully formed plots and buildings.

The bill allows municipalities to levy and collect property tax from buildings constructed in violation of building bylaws or in unauthorized layouts.

These properties will be taxed at double the rate for the first year, with only the property tax being levied in subsequent years. However, the collection of property tax “does not confer any right to regularize the violation made, or title, ownership or legal status to such building or vacant land.”

The second bill, introduced by Water Resources Minister DK Shivakumar, seeks to increase the penalty for water theft to Rs 2 lakh from Rs 1,000 and the imprisonment term to two years from one year.

It 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 that causes damage to its stability or safety.

Users of irrigation water who intend to drill or dig wells or create storage ponds within 500 meters 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.