SOURCE OF REVENUE DIVISION , TREASURY DEPARTMENT
DO YOU KNOW?
If you are only a house/building tenant, what should you do?
You are required to submit bills to the owner for immediate payment. If the owners fails to pay the bills, your mobile assets in the buildings will be detained, therefore you can protect them by paying rents to MPK.Ps. until the arrears are settled”. Provision of Section 152 (6), Local Government Act protects you as renters.
What should you do when you plan to buy a vacant house / land?
Check beforehand at MPK.Ps. on the names registered and the arrears of the houses / lands to prevent you from regretting later. Section 146, Local Government Act 1976, stresses that all rates (arrears) are the responsibility of the current owner. You are advised to check the matter beforehand with lawyers or management agents who manage the property transactions to ensure that the arrears have been cleared by the previous owner.
If there is transfer of ownership such as buying / selling / inheriting houses, property, vacant lots, what should be done ?
Please report to MPK.Ps. by filling in the transfer of ownership notice ( Form I ) of property along with other related documents such as copies of the grant, identification card, latest tax bills which have been paid, within 3 months after the transfer of ownership. Failure to do so, MPK.Ps. can take action in accordance with Section 160 (6) of the Local Government Act, whereby you may be fined up to RM2,000.00 or imprisonment not more than 6 months or both.
If your houses / buildings are vacant without being occupied, can you get exemption / reduction from the assessment rate?
Your assessment rate may be reduced provided you give written notice to MPK.Ps. regarding the vacancy and fulfil the requirements stated under Section 162, Local Government Act 1976. You may also inform MPK.Ps. if the buildings / houses have been demolished, damaged or moved to other sites.
How to pay the Assessment Tax if you are not able to pay all at once ?
MPK.Ps. will consider so that the payments be made in monthly instalments.
WHAT IS ASSESSMENT TAX ?
Assessment tax is the tax imposed onto rateable property holdings located in the area of Kangar Municipal Council ( MPK.Ps. ) :
• Residential Houses
• Factory Property
• Commercial Property ( Shops,Hotels,Complexes And Others)
• Agricultural Land
• Vacant Land
Calculation Formula = Annual Value x Rate
PURPOSE OF IMPOSING THE ASSESSMENT TAX
To finance operational costs, management of services and developments run by MPK.Ps. for the facilities and comfort for the residents within the area of MPK.Ps. This is in line with the objectives of MPK.Ps. :
• To become the body to plan, develop, coordinate and administer the area.
• The activator for socio-economic changes and development in local areas through effective and efficient services for its residents.
How is Assessment Tax Calculated?
Assessment tax is calculated either according to the holding value based on area, type or rent which is paid for the holding.
PAYMENT
Assessment bills are issued twice a year which is:
• January for the first term bills ( Jan–Jun ) to be paid before 28 February
• July for the second term bills ( July-Dec ) to be paid before 31 August
Action of MPK.Ps. if Taxes Are Not Paid
This tax will be considered as arrears and the following actions may be taken against the holding owners:
• Notice in Form E will be issued to the holding owner by giving 15 days from the date the notice is delivered so that the arrears are paid. Additional charges of approximately 2% will be imposed according to Section 146 (1) Act 171.
If the owners still fail to pay by the end of the 15 days period, a warrant of attachment will be issued. This warrant allows MPK.Ps. to detain any movable assets found in the holding or close it from operating and auction any movable asset through the order of the Registrar of High Court. The detention warrant fee of 10% will also be imposed (Section 148 and 151 Act 171)
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Assessment tax which is not paid will be issued a payment claim notice (form E) which contains the late penalty as follows : |
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Amount of Arrears |
Penalty |
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Less than RM150.00 |
RM4.00 |
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More than RM150.00 |
RM8.00 |
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More than RM250.00 |
RM12.00 |
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More than RM600.00 |
RM10.00 for every addtional RM100.00 or a portion of it |
PENALTY FOR LATE PAYMENT
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Total Unpaid |
Penalty Imposed |
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Less than RM 100.00 |
RM2.00 |
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More than RM100.00 to RM 200.00 |
RM4.00 |
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More than RM200.00 to RM 300.00 |
RM6.00 |
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And subsequently RM2.00 for each addition of RM 100.00 or a portion of it |
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Full payment must be made within 15 days from the date the claim notice is issued. If not, a warrant of attachment will be issued and the detention costs of 10% will be imposed. This warrant allows MPK.Ps. to detain any movable asset found in the holding. If the Claim notice ( Form E ) is delivered, RM 3.00 will be imposed for each notice.
If The Assessment Tax Bills Are Not Received
Personally approach the assessment tax counters at MPK.Ps. to obtain the bills. Please give the following information :
• Name
• House number and status of the property / holding
• Account Number (if there is ; or submit old bills for reference)
To avoid any action
Assessment tax must be paid immediately before 28 (29) February and 31 August each year. Not only will you be free from legal action, but also will not be fined for being late for about 2% of the total assessment tax which is not paid within the set period.
If you wish to buy houses / lands in the area of MPK.Ps.
Check first with MPK.Ps. full names in MPK.Ps. registry, assessment tax arrears for houses / lands to avoid being regretful later. Section 146 and 160 Act 171 state that the rate (arrears) has been cleared by the real owners up to date.
If transfers of ownership of holdings happens
Please notify MPK.Ps. immediately by using Form I and J within 3 months after the sale or transfer. Failure to do so, MPK.Ps. can take action according to Section 160 (6) Act 171.
Exemption of Assessment Tax for vacant holdings
Assessment tax on vacant holdings may be exempted provided the applicants prove the following :
• Given written notice within 7 days from the date on which the vacancy occurs
• That the building is in good condition and fit for occupation
• That all reasonable efforts have been made to get a tenant
• That the requested rent is reasonable
However, assessment tax for the holding has to be paid beforehand and the owner must report the vacancy within 7 days from the date on which the vacancy occurs. Claim for return has to be made within one month after 30 June or 31 December for any of the said period (Section 162, Act 171) provided the above conditions are complied to. The owner has to notify MPK.Psif the building :
• Has been demolished or will be demolished
• Has been moved or will be moved to other places
• Has been destroyed by fire, storm or other causes
Inability to pay assessment tax all at once
If the owners are not able to pay tax / arrears all at once, please approach the Assessment Tax Division, Kangar Municipal Council, Perlis personally to discuss with the relevant officer. MPK.Ps. is ready to help to solve any assessment tax issues faced by owners of holdings in the area of MPK.Ps.