Assessment rate in Ipoh reduced to 10% - The Sun Daily

1 Jan 2010

IPOH, Dec 31, 2009 : 

From tomorrow, flat, apartment and condominium owners here will only have to pay assessment rate of 10%. 

Mayor Datuk Roshidi Hashim said the new rate would take effect on the first day of 2010 following a decision by the state government recently.

Hence, he hoped the owners of such premises would not be confused with the old assessment tax rate stated in their bills received earlier. 

"All bills issued by the Ipoh City Council before this showed an assessment tax rate of 16%. The charge will be amended to the new rate of 10%  when the owners come to settle their bills," he told reporters after chairing the council meeting here today. 

Meanwhile, Roshidi said the the arrears in assessment as at November this year had increased by RM1.98 million to RM48.63 million, compared with RM46.65 million for the corresponding period last year. 

Hence, he said, the council would intensify efforts to collect the arrears aggressively in 2010 to achieve the state government's target to collect at least half of the total arrears.

Houseowners in Ipoh to pay between 10% and 276% effective from July 1 - The Star

Jun 29 by Manjit Kaur

RATEPAYERS in Ipoh are fuming mad after they received notices from the Ipoh City Council on the higher assessment rates imposed.

The new assessment rates were fixed after an exercise to revaluate properties was carried out.

The council had revised the rates just last year, where residential ratepayers were required to pay 16.5% compared to the previous rate of 16%.

Canning assemblyman Wong Kah Woh said residents living in Taman Cempaka and Desa Cempaka near here had informed him about the matter a few days ago.

He said that about 3,000 households in both the areas had received the notices, and were very unhappy, as there was an increase of between 10% and 276% in their assessment rates.

“I was told that about 16,000 ratepayers in both the areas, Tambun and Tanjung Rambutan have received such notices since last week.

“I hope the local government will freeze and cancel the exercise, as with the Goods and Services tax and development charges imposed on ratepayers, the hike is not helping to reduce the burden of the people.

“So the council at this juncture should not increase the assessment rates by way of revaluation of the properties, and burden the people further,” he added.

Wong said Ipoh had the highest assessment rate after Kuching compared to nationwide.

Chin Nyuk Voon, 50, from Desa Cempaka said he currently paid RM286.28 in assessment, but with the revaluation of his property, he would be required to pay RM1,079.10.

The insurance agent said he was shocked when he received the notice, because there was an increase of 276%.

Chow Wai Kuan, 39, meanwhile, said before she received the notice she used to pay RM257.40, but was now required to pay RM633.60.

“I have two school-going children, monthly expenditure and various bills to settle.

“We don’t come from a rich family background, and the increase in the rates is drastic,” added Chow who works in a bank.

Senior citizen Chong Soek Ying, 72, from Taman Cempaka said she used to pay RM16.50 in assessment but that the notice now stated she was required to pay RM405.90.

“Where are my husband and I are going to get so much of money to pay the exorbitant hike in the assessment rate.

“We are old people, and we need money for our medical bills. We can’t afford to pay so much in assessment,” she said.

Datuk Bandar Datuk Harun Rawi said the council had issued notices for the amendments made to the annual assessment to a total of 19,193 property owners.

He said the revaluation of the properties in the city was carried out this year, and that the council found several factors that led to the amendments made.

The factors, he said included the revaluation of the yearly assessment from a previous vacant plot of land to a building being constructed there, enforcement carried out on new extensions and illegal renovations, and change in status for property owners.

He said the revaluation exercise was carried out in Tanjung Rambutan, Taman Perpaduan, Tambun and Taman Cempaka.

“The exercise was carried out in 67 residential areas, and to date 16,409 notices have been sent out to the property owners.

“Such an exercise was carried out for the first time after a very long period, and it was also in line with Section 144 (1) of the Local Government Act 1976, which allows revision on property at all times,” he added.

Harun said the difference in the amount varies from one property owner to another, based on the checks carried out at the relevant sites by the council officers.

He said the enforcement date for the amended yearly assessment was effective from July 1.

“Ratepayers can use the proper channel to voice out their objections.

“The council has set up an objections committee for those who are unhappy with the revised rates,” he added.

Ipoh council defends hike in assessment rates - The Malaysian Insider

27 June 2015  BY ISTA KYRA SHARMUGAM

The Ipoh City Council (MBI) is standing by its revision of the annual assessment rates despite a recent outcry against the hike.

Mayor Datuk Harun Rawi said the revised rates were targeted at property owners who had carried out renovations or new construction.

"For example, land lots that were previously empty will obviously have a revised annual assessment rate if a structure has been built on it.

"The same goes for those who carry out renovations or extensions on their property," he said.

He said the revaluation exercise was also a form of enforcement on owners of residential and commercial premises who carried out illegal renovations or converted the use of their premises from its original designation.

"The exercise has been carried out in Tanjung, Perpaduan, Tambun and Taman Cempaka.

"To date, a total 19,193 lots, from 67 residential neighbourhoods, are involved in the exercise," Harun said.

He added that under the city bylaws under Section 144 (2) and the Local Government Act 1976, MBI was required to issue notices on revised annual assessment rates when there was a difference in the annual value.

"A total of 16,409 notices have been issued in the most recent revaluation exercise that has not taken place in years.

"By right, the bylaws allow for the exercise to be carried out at anytime," he said.

Harun said different properties would have different rates based on the checks carried out by MBI.

The assessment rates take effect from July 1.

"Those with any objections are welcome to address their issues with the MBI objections committee," he said.

He said a written complaint could also be submitted based on the deadline specified in the new assessment rates notice.

Property owners can submit their complaints at Level 4 at MBI's Assessment and Property Management Department or contact 05-2083 309 for more information.

The Malaysian Insider had earlier reported that residents in Taman Cempaka, Ipoh, were against the latest hike in assessment rates which had more than doubled for some of them.

Canning assemblyman Wong Kah Woh said he had received numerous complaints last week, after notices on the increased annual rates were issued to property owners in the city.

Wong said the increase generally varied from 10% to 150%, but some people had been charged more than 200%.

Forum On Assessment Rates In Ipoh - Ipoh Echo

1 March 2014 By A. Jeyaraj

Ipoh City Watch (ICW) organised a forum to discuss ‘Issues of Assessment Rates’ which was held at the Open University Malaysia. In his opening address, Associate Professor Dr Richard Ng, Chairman, (ICW) said that in view of the concern voiced by residents on the increase of the assessment rates for 2014 imposed by Majlis Bandaraya Ipoh (MBI), ICW decided to invite  speakers from different backgrounds to speak on the issue.

The first speaker Dato’ Chang Ko Youn was the former State Exco Member for Local Council and is currently the Advisor of Party Gerakan Malaysia. He said that the sources of income for local councils are federal grant, state grant and internal sources like assessment, licence and parking fees. This income is spent on development costs and operating costs which are mainly salary for staff. The assessment is based on a percentage of the annual rental value of the property. At 16.5%, Perak has the highest rate in Peninsula Malaysia for residential property. The rates vary for different sectors. The rate is based on the valuation done in 1982. The authority to fix the rate is with the state government, pursuant to Local Government Act 1976. The local authority can carry out evaluations every five years, however, this is not done due to the high cost of doing so. He informed the gathering that during his term as Exco for Local Council he did not allow MBI to increase the rates.

Chang also said that local councils throughout the world are not financially independent and need grants from the federal government. He quoted the case of the bankruptcy of Detroit City in USA.

The second speaker was Howard Lee Chuan How, ADUN Pasir Pinji and Youth Secretary, DAP Malaysia. Howard said that the assessment rate is based on the highest and best rental value of the property and the state has the right to set the value. The rate must be fair and based on the ability of the person to pay. He queried the rationale to increase industrial property rate from 10% to 16.5%. The former Mayor has said that increase in rates would improve services, an assumption which Howard doubted. 

Howard informed the gathering that as per MBI Finance Report, during 2011 and 2012, RM32 million and RM34 million in assessments were not collected respectively. He questioned whether the increase was to make up for this shortfall. Are the law abiding ratepayers being over taxed to compensate for those not paying? With the current increase in cost of living, is this the right time to increase assessment rates?

The third speaker was Burhanuddin Maamor from the Department of Valuation and Property Management from MBI who said that since assessment rates were based on 1982 valuations, they were out of date. The Local Government Act allows the state to impose a maximum rate of 35% for assessment. There are more than 200,000 properties out of which about 180,000 are residential and about 5,000 are industrial. So as not to burden the majority, the residential rate was increased by 0.5% only. He informed that in 1987 the industrial rate was reduced from 16% to 10% and now it is back to the old rate. The rates are based on built-up areas and many house owners prefer to make unauthorised extensions so as to avoid paying the council.

Burhanuddin said that MBI operates a balanced budget in that its expenditure is within its income. Due to increasing expenses, if the rates are not increased, MBI would have to close down.

During question time, an industrialist (who only wanted to be known as Lee) commented that the increase in rates is making it difficult for them to operate their business. During 2013 they received a backdated assessment while also bearing the additional cost of minimum wages. This year the tariff on electricity has gone up. Some businesses may have to close down as a result.

Chan Kok Sun, a retired government auditor said that Ipoh depends on industries for its progress and revenue. We should not kill the goose that lays the golden egg. He compared the actual assessment rate of similar terrace houses in Shah Alam and Ipoh and said that Ipohites were paying RM100 more. The rental income in Shah Alam is RM1,400 and in Ipoh RM500. Businesses should have been given advanced notice so that they can prepare their cash flow and avoid problems.

On the question of what efforts are being taken to collect outstanding assessments, Burhanuddin said that there is a special unit in his department whose staff work seven days a week to collect the outstanding amount. He added that the provision of seizing the property for non-payment is seldom enforced. Meetings are held with those who cannot afford to pay and instalments plans are worked out with them.

Burhanuddin said that the new rates have been gazetted and must be de-gazetted if they are to be revised. Participants felt this is not a problem and can be done.

When asked whether this is the right time to increase rates, Howard felt that it is not. He said that MBI must reduce wastage and be more prudent. A manufacturer cannot keep on increasing the price of his products due to the increase in manufacturing costs. MBI cannot keep on increasing their rates to cover their costs.