Karnataka Assembly passes Bill to regulate hoardings, allow levy of advertisement fees

The Karnataka Legislative Assembly has passed the Karnataka Municipalities and Certain Other Laws (Amendment) Bill, 2026, aimed at regulating outdoor advertisements and enabling municipal bodies to levy and collect fees on hoardings and billboards across the state.

The Bill was moved by Urban Development and Town Planning Minister B. S. Suresha and adopted by the Assembly on Monday.

The legislation empowers municipal councils and corporations to levy an advertisement fee on any person who erects, exhibits, fixes or displays advertisements on land, buildings, walls, hoardings or other structures within municipal limits. The fee will be determined by local bodies through a resolution, subject to minimum and maximum rates prescribed by the state government.

The Bill mandates that advertisements in municipal areas can only be displayed after obtaining written permission from the concerned municipal council or corporation commissioner and after payment of the prescribed fee. Permission will not be granted if the advertisement violates municipal by-laws or if the fee has not been paid.

The amendment also authorises municipal authorities to remove or demolish unauthorised advertisements. Officials may issue a notice directing the owner or occupier of the land or structure to remove such advertisements, failing which authorities can enter the premises and remove them.

Unauthorised advertisements will attract penalties and fines, and delayed payments of advertisement fees or penalties will incur interest at 18% per annum until the dues are cleared. Authorities may recover dues in a manner similar to property tax recovery, including seizure and sale of advertisement materials if necessary.

The Bill provides exemptions for advertisements related to public meetings of municipalities or corporations, elections to legislative bodies, and candidature in such elections.

It also validates earlier levies and collections of taxes, cess or fees by municipalities and corporations, stating that such actions will be considered lawful notwithstanding any court judgment, decree or order to the contrary.

During the discussion in the Assembly, Suresha reportedly said the legislation aims to curb unauthorised hoardings and ensure revenue flows to local bodies. He noted that many boards have been installed without paying taxes and that the government intends to bring them under the tender process so that revenue can accrue to municipal bodies.

It is reported that according to the minister, advertisements placed on government land, private land or on a person’s own property would all be subject to taxation, though boards placed on one’s own property cannot be forcibly removed.