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Property Assessment
General
Property assessment, also known as assessment rates is a form of
taxation imposed by the Municipal Council of Penang Island on all
properties in the Municipal Council of Penang Island area which is
based on the 'Annual Value' and the Annual 'Percentage Rate'.
Assessment rates must be paid twice in a year i.e. in January and July.
An example of how assessment rates is calculated:
Annual Value of Property - RM3,000
Annual Percentage Rate - 10%
Assessment rates of property is - RM3,000 x 10% = RM300 per annum or
RM150 every 6 months
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 Annual Rates for year 2006 is as follows:
| |
Type of Property
|
Area 1
Percentage Rate
|
Area 2
Percentage Rate
|
| 1. |
Industrial |
13.50%
|
13.50%
|
| 2. |
Commercial |
10.30%
|
10.30%
|
| 3. |
Landed (Residential) |
8.30%
|
8.30%
|
| 4. |
Strata (Residential) |
7.50%
|
7.50%
|
| 5. |
Low Cost (Residential) |
7.00%
|
7.00%
|
| 6. |
Associations / Kongsi |
7.00%
|
7.00%
|
| 7. |
Development (Vacant Land) |
4.50%
|
1.70%
|
| 8. |
Agricultural (Vacant Land) |
0.00%
|
1.00%
|
| 9. |
Hotel |
13.50%
|
13.50%
|
| 10. |
Small Industry (Agricultural) |
6.80%
|
6.80%
|
Effective Date of Assessment
Assessment is imposed on a building a month after the date of issue of
the Occupation Certificate by the Council or from the date of
occupation of the demised building whichever is the earlier.
For vacant lands, the land assessment will be imposed from the date of
approval of the planning permission or a date deemed fit by the
Council.
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.
Objection Against
Property Assessment
Under Section 141 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:-
- That any holding for which he is rateable is valued beyond
its rateable value;
- That any holding valued is not rateable;
- That any person who, or any holding which ought to be
included in the Valuation
List is omitted therefrom;
- That any holding is valued below its rateable value, or
- That any holding or holdings which have been jointly or
separately valued ought to
be valued otherwise.
Remission / Refund
of Rates
Remission or refund of rates as provided in Section 162 of the Local
Government Act, 1976 is applicable where a building is not occupied and
no rent is payable. In such a case, the Municipal Council of Penang
Island may order that a portion of the rates be refunded or remitted.
Conditions For The Application Of Remission / Refund of
Rates
- The building is unoccupied and no rent is payable for a
period exceeding 1 month after the expiry of the relevant half year,
i.e. before 31 January / 31 July.
- Notice in writing has been given to the Valuation
Department, Municipal Council of Penang Island within 7 days of the
commencement of the vacancy.
- Applications for remission / refund of rates must be sent
not later than 1 month from the date of expiry of the relevant half
year, i.e. before 31 January / 31 July.
- Show proof that the building is in good repair and fit for
occupation.
- Reasonable efforts have been made to obtain a tenant, for
example, by using the services of a real estate agent or advertising in
the newspapers or displaying a 'For Rental' sign at the building.
Process Of Application, For Remission / Refund of Rates
- Submit a notice in writing to the Director of Valuation,
Municipal Council of Penang Island in respect of such vacancy within a
period not exceeding 7 days.
- If the Department is satisfied about the building's
eligibility, an application form for remission / refund of rates (RAC
3) will be sent to the applicant.
- The applicant should complete the form together with an
official receipt and return it to the Department not exceeding a month
from the dates 30 June / 31 December.
The Responsibility
of A Ratepayer
- Give a notice to the Municipal Council of Penang Island
regarding the transfer
or change of ownership of the property liable for assessment.
- Give a notice to the Municipal Council of Penang Island
regarding new
or demolished buildings or any extension or alteration to the building.
- Complete and return forms sent by the Municipal Council of
Penang Island.
- Allow the employees of the Municipal Council of Penang
Island to make
an inspection of the property for assessment purposes.
Late Payment Penalty
Imposed on Arrears of Rates
|
Item
|
First Half
|
Second Half
|
| Bills posted: |
1 JANUARY
|
1 JULY
|
| NOTICE CHARGES issued: |
1 MAC
|
1 SEPTEMBER
|
| How Notice Charge is imposed |
|
|
1% on current assessment (Code 1)RM1.00 -
RM100.00 subject to a minimum charge of RM1.00;
2% on current assessment (Code 1) exceeding RM100.00
|
|
|
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WARRANT FEE imposed:
|
|
| First Warrant (for arrears of RM200.00 and
above) |
Fixed 15 days from the date of
postageof bill notices |
| Second Warrant (for arrears RM200.00 less
than RM200.00) |
1 MAY
|
1 NOVEMBER
|
| How Warrant Fee is imposed |
|
|
10% on amount [current Assessment (Code) +
Notice) of RM1.00 - RM100.00]
20% on amount [current Assessment (Code 1) + Notice] exceeding RM100.00
|
|
|
| *Note: Cent not taken into
consideration |
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