Bengaluru: The Karnataka Legislative Assembly on Monday approved a Bill that seeks to regulate outdoor advertising across the state while allowing municipal bodies to collect fees from hoardings and billboards.
The Karnataka Municipalities and Certain Other Laws (Amendment) Bill, 2026, introduced by Urban Development and Town Planning Minister B S Suresha, gives municipal councils and corporations the authority to charge advertisement fees for displays placed within their jurisdiction.
Speaking in the Assembly, Suresha said the measure is intended to curb the growing number of unauthorised hoardings and ensure that the revenue generated from outdoor advertising flows to local bodies.
He noted that many advertising boards have been installed without any tax payment. The government plans to remove such unauthorised displays and bring advertising spaces under a tender-based system so that municipalities can monetise them.
Under the amended provisions, anyone installing or displaying advertisements on buildings, land parcels, walls, hoardings or other structures within municipal limits will have to pay a fee. Local bodies will decide the applicable rates through resolutions, though these will fall within minimum and maximum limits set by the state government.
The law also introduces a mandatory approval mechanism. Advertisers must obtain written permission from the commissioner of the relevant municipal council or corporation before putting up advertisements. Permissions may be denied if the proposed display violates municipal regulations or if the required fee has not been paid.
To strengthen enforcement, municipal authorities will have the power to remove or dismantle illegal advertisements. Officials may first issue a notice to the property owner or occupier asking them to take down the unauthorised display. If the notice is ignored, authorities can enter the premises and remove the structure themselves.
Violations will attract penalties. In cases where advertisement fees or fines remain unpaid, interest at 18% per annum will be charged from the date the amount becomes due until it is settled. Municipalities will also be allowed to recover outstanding dues using procedures similar to property tax recovery, including the seizure and sale of advertisement materials.
Suresha clarified that the rules will apply across different types of locations, including government land, private property and structures owned by individuals. While boards installed on personal property cannot be forcibly removed if they comply with regulations, the owners will still have to pay the prescribed municipal advertisement tax.
He added that advertisements placed on government land will be regulated through a tender process, with the successful bidder required to pay the amount fixed by the authorities.
The legislation also provides retrospective validation for advertisement-related taxes, cess and fees previously collected by municipal bodies, stating that such collections will remain valid even if earlier challenged through court orders.
However, certain categories of advertisements will be exempt. These include notices related to municipal meetings, as well as advertisements connected with elections to legislative bodies and election candidates.
According to the minister, regulating the outdoor advertising ecosystem could unlock revenue worth hundreds of crores for municipal bodies across Karnataka.
