Kadar (Cukai Taksiran atau Cukai Pintu)

• General

  Rate or assessment tax or gate tax is a tax imposed on all holdings (property) to enable PBT to provide services to all holding owners within its administrative area.

  Assessment tax is charged on all types of holdings whether it is land erected with buildings/structures or vacant land. The power to impose rates is in line with the provisions of the Local Government Act 1976 (Act 171) under Section 127 which allows MBPP to impose rates on holdings located within the Council's administrative area.

  Assessment tax is charged on all holdings within the MBPP area based on the 'Annual Value' and Annual 'Percentage Rate'. Assessment tax must be paid twice a year in January and July.

• Annual Value

  The annual value of a holding, as defined in Section 2 of the Local Government Act, 1976, is the estimated annual rent at which the holding might reasonably be expected to let with the owner paying the cost of repair, insurance and other expenses necessary for the maintenance of the holding

• Annual Percentage Rate

  The percentage rate is fixed annually by the Council according to its financial needs. Once the rate percentage is approved by the Council, it is retained for the whole year and no appeal may be made against it.

  The New Annual Rates, effective from 1 January 2020 is as follows:

  No.	Type of Property	New Rates 2020
  1.	Landed Residential	6.00%
  2.	Landed Residential - Low Cost/Low Medium Cost	5.00%
  3.	Flat Residential - Low Cost/Middle Class	5.00%
  4.	Apartment/Kondominium	5.80%
  5.	Commercial	9.00%
  6.	SOHO	10.00%
  7.	Service Apartment	10.00%
  8.	Industrial	12.00%
  9.	Hotel	14.70%
  10.	Associations/Kongsi	7.00%
  11.	Development Land (City)	4.00%
  12.	Development Land (Urban)	2.00%
  13.	Agricultural Land	0.50%
  14.	Golf Club/Horse Racing Club	14.70%

• Rateable Area

  For the purpose of assessment, the Council has divided its area of administration into two. Area One covers the area within the City of George Town and Area Two covers the area outside the City of George Town.

• Holdings Charged of Tax Assessment

  Assessment Tax is charged on all types of real estate whether it is land erected with buildings/structures or vacant land.

  Referring to the interpretation under Section 2, the Local Government Act 1976 has provided for an assessment tax to be levied on any land:

  (i) which is partly occupied or partly has any construction on it;

  (ii) which is vacant, unoccupied or without any construction on it;

  (iii) on which there is an unfinished building; or

  (iv) on which there is a building that has been certified by the local authority as abandoned or bad or unfit for human habitation.

  A building will be subject to assessment tax one month after the date of the Certificate of Completion and Compliance (CCC) or Certificate of Occupancy (OC). For vacant land, assessment tax is charged from the date of planning permission approval or a reasonable date as determined by the Council.

• Objection Against Property Assessment

  Under Section 142 of the Local Government Act, 1976, any person aggrieved with the assessment imposed may make objection in writing within a period of one month from the date of the Assessment Notice. Objections may be made on the following grounds:-

   

  a.	That any holding for which he is rateable is valued beyond its rateable value;
  b.	That any holding valued is not rateable;
  c.	That any person who, or any holding which ought to be included in the Valuation
  d.	That any holding is valued below its rateable value, or
  e.	That any holding or holdings which have been jointly or separately valued ought to be valued otherwise.

   

• Assessment Tax Exemptions and Reductions

  Referring to Section 134, Local Government Act 1976 (Exemption from Rates) has stated that when a holding or any part thereof is used solely:

  • As a public place for prayer (House of Worship)

  • As a licensed public cemetery or crematorium

  • For public schools

  • As a public place for charitable purposes or for the purposes of science, literature or fine arts and not for financial gain

  Section 135 of the Local Government Act 1976 allows an exemption or reduction of the rate to be given if the holding or part of it is used for welfare, social or recreational purposes with no intention of gaining money, the State Authority may at its discretion, exempt the holding or part of the holding from the payment of all or any rate or may reduce any rate charged on the holding or part of the holding.

• Transfer Of Ownership And Name Change

  When a proportional holding is sold or transferred, it is the duty of the seller or transferor and the buyer or transferee within three months after the sale or transfer of ownership to give notice using Form I (transfer of ownership/ change of name) to MBPP.

  When the owner of a proportional holding dies, it is the duty of the intestate heir through inheritance or otherwise to give notice of this to the MBPP within one year after the death by using Form J (transfer of ownership due to death).
  
  The form can be downloaded from the website
  (https://www.mbpp.gov.my/en/muat-turun-borang).

• The Responsibility of A Ratepayer

  a.	Give a Notice to M.B.P.P. about the transfer or conversion of ownership of real estate subject to assessment tax.
  b.	Give a Notice to M.B.P.P. about new buildings or demolished buildings or any additions and amendments to his house.
  c.	Complete and return the forms sent by M.B.P.P.
  d.	Allow the employees of M.B.P.P. to make an inspection of the property for assessment purposes.
  e.	Meet with the Bahagian Kutipan Hasil if the assessment tax bill is not received in January/July every year.
  f.	Pay the assessment tax bill for the first half of the year before February 28 and the second half of the year before August 31 each year.

• Late Payment Penalties to Be Charged for Arrears of Assessment Tax

  Perkara	Separuh Tahun Pertama	Separuh Tahun Kedua
  Bills posted:	1 JANUARI	1 JULAI
  NOTICE CHARGES issued:	1 MAC	1 SEPTEMBER
  How Notice Charge is imposed:

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  WARRANT FEE imposed:

  How Warrant Fee is imposed