The Karnataka Government on September 14, 2021 has issued the Karnataka Municipalities and certain other Law (Second Amendment) Bill, 2021 to further amend the Karnataka Municipalities Act, 1964 (Karnataka Act 22 of 1964) and the Karnataka Municipal Corporations Act, 1976 (Karnataka Act 14 of 1977).
Amendments made in the Karnataka Municipalities Act, 1964 (Karnataka Act 22 of 1964)
• In section 94, which specifies Taxes which may be imposed, in sub-section (1), sub-clause (b), after word following taxes word “FEE” has been inserted, namely:
with the sanction of the Government and at rates not exceeding those specified in 1 [Schedules I, III, IV, VI and VII;] may levy any one or more of the following taxes OR FEES.
• In section 94, which specifies Taxes which may be imposed, in sub-section (1), sub-clause (b), sub-clause (xiii) , after word tax, words “OR FEES” has been inserted, namely:
a tax OR FEES on advertisements (other than advertisements published in newspapers) erected, exhibited, fixed or retained upon or over any land, building, wall, hoarding, frame, post or structure or upon or in any vehicle or displayed to public view in any manner whatsoever visible from a public street or public place (including any advertisement exhibited by means of cinematograph):
• In Section 133,which specifies Prohibition of advertisements without written permission of municipal council, in Sub-section (1) and (2) after word tax, words “OR FEES” has been inserted, namely:
No advertisement shall, after the levy of the tax OR FEES under section 94 has been determined upon by the municipal council, be exhibited, erected, fixed or retained upon or over any land, building, wall, hoarding, frame, post or structure or upon or in any vehicle or shall be displayed in any manner whatsoever in any place within the 1 [municipal area] without the written permission of the municipal council, granted in accordance with bye-laws made under this Act.
(2) The municipal council shall not grant such permission if, -
(i) the advertisement contravenes any bye-laws made under this Act; or
(ii) the tax OR FEES, if any, due in respect of the advertisement has not been paid.
Amendments made in the Karnataka Municipal Corporations Act, 1976 (Karnataka Act 14 of 1977)
• In section 103, which specifies, taxes which can be imposed, clause (b) has been substituted, namely:
“with the sanction of the Government and at rates not exceeding those specified in 1 [Schedules III, IV, 2 [x x x] and VIII], levy any one or more of the following taxes or FEE”
• In section 103, which specifies, taxes which can be imposed, clause (b) Sub-clause (6) has been substituted, namely:
“a tax OR FEE on advertisement”
• In section 134, which specifies Tax on advertisement, in heading after tax “OR FEES” has been inserted, namely:
“Tax or FEE on advertisement”
• In Section 135, which specifies, Prohibition of advertisements without written permission of Commissioner , in section (1) & (2) after the word tax, word OR FEE has been inserted, namely:
(1) No advertisement shall, after the levy of the tax or FEES under section 134 has been determined upon by the corporation, be erected, exhibited, fixed or retained upon or over any land, building, wall, hoarding or structure within the city or shall be displayed in any manner whatsoever in any place without the written permission of the Commissioner.
(2) The Commissioner shall not grant such permission if,-
(i) the advertisement contravenes any bye-law made by the corporation; or
(ii) the tax or FEES, if any, due in respect of the advertisement has not been paid.
• In section 139, which specifies, Collection of tax on advertisement, after words tax, word OR FEES has been inserted, namely:
The Commissioner may farm out the collection of any tax OR FEES on advertisement leviable under section 134 for any period not exceeding one year at a time on such terms and conditions as may be provided for in the bye-laws.
It is considered necessary to amend the Karnataka Municipalities Act, 1964 (Karnataka Act 22 of 1964) and the Karnataka Municipal Corporations Act, 1976 (Karnataka Act 14 of 1977) to provide the power to the urban local bodies to levy fee for granting permission for erecting outdoor advertisements within their jurisdiction so that the urban local bodies do not incur loss of revenue, as the advertisement tax has been subsumed under the Goods and Services tax.
[Bill 31 of 2021]
