The Ampang Jaya Municipal Council (MPAJ) has applied to the Selangor government for the approval to conduct property re-evaluation of all properties located within its jurisdiction.
Based on a provision in the Local Government Act 1975 Section 137 (3), the re-evaluation is supposed to be carried out every five years “but the last time it was done was in 1997” since the previous application to the state government were not approved, said MPAJ acting president Abd Hamid Hussein.
He added that the re-evaluation exercise is expected to cost RM4.2 million and will likely be completed within a year or two.
Abd Hamid also explained that they wanted to carry out the exercise since some property owners are not paying based on the current value of their properties.
“Some are actually paying more while others are paying less.”
“For instance, there is a mall that used to be very popular but is now doing badly but still paying very high assessment thus finding it hard to make ends meet while in other areas, homes are being rented out for RM1,500 but paying only RM80 in assessment tax,” he noted.
Notably, landed properties will be evaluated by professional valuers while strata properties will be evaluated internally.
Meanwhile, business owners who renewed their licenses prior to 31 December will still enjoy the old rates.
“The new rates will only be applicable to new businesses and those who renew their licences next year,” said Abd Hamid.
The new rates will be based on the type of business as well as the amount of floor space it occupies.
Farah Wahida, Editor of PropertyGuru, wrote this story. To contact her about this or other stories email farahwahida@propertyguru.com.my
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