A Khata & B Khata

On 16-1- 2007, the State Government constituted the BBMP by merging seven CMCs, 1 TMC and some villages with the
erstwhile BMP. At the time of merger, the BMP was collecting property tax on the basis of Annual Rental Value under the
optional Self Assessment System, whereas the CMCs, TMC were collecting tax under the capital value system under the
provisions of the Karnataka Municipalities Act, 1964 and the villages were collecting tax under the Karnataka Panchayat
Raj Act, 1993. Following the merger, it was felt necessary to bring in a uniform property tax policy in the entire BBMP
area. Therefore, the Karnataka Municipal Corporations Act, 1976 was amended on 5th March 2009, by inserting a new
section 108A, to provide for collection of property tax on the basis of unit area value. The new section 108A gives the
detailed process for the assessment of property tax for such properties. Now, when this was done, the BBMP came
across a problem. They found that several constructions were unauthorized, in the sense that they were constructed on
agricultural land that was not converted, or were built in violation of building bylaws, or no occupancy or completion
certificates had been issued (The last mentioned circumstance was mostly in respect of group housing colonies,
apartment complexes etc. ). Now this posed a problem for the BBMP. The fact was that strictly speaking, such properties
were unauthorized. But at the same time, they were enjoying the common facilities of the BBMP. Now if they were allowed
to escape the property tax net, then they were benefiting! So in order to ensure that all buildings are to be enumerated for
property tax, regardless of other problems regarding whether they are authorized under any other law, a suitable provision
was made under sub section 3 of Section 108A, that the BBMP may levy and collect the property tax even from a building
constructed in violation of the provisions of the building byelaws or in an unauthorized layout or in a revenue land or from
a building occupied without issuance of occupancy or completion certificate (except buildings constructed illegally in
Government land, land belonging to any local body, any statutory body or an organization owned or controlled by the
Government). The property tax collected from such building is to be maintained in a separate register. This is the B
register, and the Khata issued under this register is the B Khata. As soon as the intervening irregularity is made up, for
example, you get the occupancy certificate, or the non agricultural occupation of land is regularized, your Khata is
transferred to the A Khata register. Of course, Section 108 A also very clearly states that the levy and collection of
property tax under sub-section (3) does not confer any right to regularise violation made, or title, ownership or legal status
to such building and such buildings shall always be liable for any action for violation of law in accordance with the
provisions of this Act or any other law. Slightly long winded, but I hope this answers your question!