The Directorate of Municipal Administration established in Karnataka vide GO. No: HUD 58 MNY 1980 dated: 04.12.1984 to oversee the affairs of the City Corporations and Urban Local Bodies (ULBs) of the State except Bruhat Bangalore Mahanagara Palike (BBMP).
The history of urban local self-governing bodies (commonly called Municipalities) in Karnataka State dates back to more than a century. Based on the population Urban local bodies are classified into various categories like City Corporations, City Municipalities, Town Municipalities and Town Panchayats. The Municipal bodies are now governed by the provisions contained in Karnataka Municipalities Act, 1964 (for City Municipalities, Town Municipalities and Town Panchayats) and Corporation Act, 1976 (for Corporations).
The Government of Karnataka has reconstituted the municipalities according to the 74th Constitutional Amendment Act. The towns have now been classified based on the population and other criteria as Town Panchayat (Population 10,000 to 20,000), Town Municipal Councils (Population 20,000 to 50,000) City Municipal Councils (Population 50,000 to 3,00,000) and City Corporations (Population 3.0 lakhs and above). Accordingly, at present there are 10 City Corporations, 59 City Municipal Councils, 116 Town Municipal Councils and 94 Town Panchayats in the state. Government has created Notified Area Committees (NAC) to provide municipal services for specified areas like industrial areas and presently there are 4 NAC in the state.
In order to discharge Obligatory and Discretionary functions notified in the Act, Municipalities have been vested with the powers to levy certain taxes and fees and in-spite of this State Government also transfers a portion of its general revenues to the urban local bodies. The main sources of income for the municipalities are derived from (a) taxes on building and lands, (b) user charge for water supply (c) license fee for regulating the building construction activities and fee from other trade license (d) taxes on advertisement (e) duty on certain transfers of property. The municipalities can also raise loans from Central and State Governments and other Financial Institutions to meet the expenditures under capital heads of accounts.
Source: DMA, GoK.