Introduction
Assessment Tax is a tax imposed on all ownerships and rateable properties that are within the administrative areas of Shah Alam City Council (MBSA).
The Act
Power to impose the Assessment Tax is in accordance with the provisions of the Local Government Act 1976 (Act 171) under Section 127 that allows Shah Alam City Council to impose rates on the ownerships that are within the administrative areas of MBSA.
How The Annual Valuation Determined?
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Annual Value is Annual Rental Gross Estimation that is reasonable is expected to be obtained from year to year of the related ownership if rented.
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VALUATION = GROSS RENTAL ESTIMATION PER MONTH X 12 MONTH
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Ownership Category
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:
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Residence (Double Storey Terrace House)
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Building Area
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:
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143.85 psf
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Rent Estimation psf
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:
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RM 4.85 psf
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Annual Gross Rental Estimation
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:
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143.85 psf x RM 4.85 psf = RM 697.67
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Rent Estimation
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:
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RM 700.00 x 12
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Annual Valuation
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:
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RM 8,400.00
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Rate |
:
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4%
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Tax Assessment per year
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:
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RM 336.00
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Tax Assessment per-term |
:
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RM 168.00
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For Vacant Land, the Annual Value is determined based on 10% of the market price of the land. It is based on Section 2 of the Local Government Act 1976 (Act 171).
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Ownership Category
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:
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Residence (Single House)
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Building Area
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:
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10,000 sq. ft.
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Market Value psf
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:
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RM 40 psf
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T.K. Rate (Residence)
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:
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3.5%
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Market Value
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:
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10,000 sq. x RM 40.00 psf
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Annual Value
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:
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RM 400,000.00 x 10% = RM 40,000.00
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Tax Assessment per year
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:
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RM 40,000.00 x 3.5% = RM 1400.00
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Tax Assessment per term
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:
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RM 700.00
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Rate
The current rate structure that is being enforced is a rate that is varied based on types of use. The rates that have been approved for the year 2014 are as follow: -
|
Building |
Vacant Land |
| 4.0 |
3.5 |
| 3.5 |
3.5 |
| 5.0 |
5.0 |
| 7.0 |
6.5 |
| 7.5 |
7.0 |
| 2.0 |
1.0 |
| - |
3.5 |
Reduction of Tax Assessment for the Disabled (OKU).
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The rate of the DISABLED is only applicable when the request is received from the owner of the DISABLED.
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However, based on the decision of the State Executive Council (11th/2013) dated 20 March 2013, the State Executive Council has approved the reduction of 50% Tax Assessment to owners of disabled who own and reside on residential house only.
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Procedure for reduction of tax assessment for the disabled is as follow:
| i. |
Application is made in written form via using the Reduction of Tax Assessment Application Form for disabled people which is available and to be submitted to the Department of Property Valuation and Management by hand, email, fax or mail. Example of such form is at Appendix 2. |
| ii. |
Department of Property Valuation and Management will conduct site visit to the land property to verify that the property is occupied by the applicant and is not intended for rental purpose. |
iii.
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iii. Each application must be renewed each year by:
Application Period
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Decision
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Submitting the application form before February 28 of each subsequent year.
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Eligible for a reduction per year
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| iv. |
Valuation and Property Management will present the application at a meeting of the Finance Committee for approval. Adjustment of all Assessment fee reduction will be done by the DISABLED Finance Department through the jurnal process for affected accounts after receiving a memo from the Department of Valuation and Property Management (i.e. upon approval by the meeting of the Finance Committee).
Download
Assessment Tax Verification Form 
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Payment Period
Assessment Tax must be paid twice a year, that are on: -
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First Term - January 1 until February 28
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Second Term - July 1 until August 31
Default Compliant Action
If the tax assessment is not paid within the specified periods, the following actions can be taken against you:-
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Notice of Fine Form
According to Section 147 (1) Local Government Act 1976, penalty notice in E Form will be issued for you to make payment of the arrear within 15 days. The penalty imposed is RM20.00.
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Warrant (Form F)
If within 15 days you still fail to pay the arrear, the warrant of detention in F Form will be issued by 4% of the total arrear.
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Inventory (Form G)
The issuance of warrant allows MBSA to conduct inventory / list in G Form regarding all movable properties held in the properties / premises that being valued with the total arrear. If within 3 days the arrear is not paid, the property will be seized and sold through a public auction.
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Hold and sell property (H Form)
If the amount of the arrear is more than the movable property, H Form will be pasted in a place that is easily being seen on the property and a civil action at the High Court for an order of sale will be conducted.
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Legal Actions
Court action to auction the immovable property based on the provisions of Section 15 Act 171 will be conducted by lawyers of Council Panel.
All legal costs and the costs of the action will be borne by the owner and part of the arrear.
Payment Method
Assessment Tax payment for can be made as follow: -
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Council Payment Counter
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G Floor Main Counter, Wisma MBSA.
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Wisma MBSA Drive-in Counter.
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Sungai Buloh Branch Office
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Kota Kemuning Branch Office.
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Local Authorities
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Land / District Office
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Local Agency
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Post Office - Selangor, Kuala Lumpur & Putrajaya
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Tenaga Nasional Berhad - Shah Alam (Before / on the payment due date)
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Telekom Malaysia Berhad - Shah Alam (Before / on the payment due date)
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Banks
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Bank Simpanan Nasional - Cash
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Ambank - Cash
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Affin - Cash And Cheque
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Agro - Cash And Cheque
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Bank Muamalat - Cash And ATM
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Bank Rakyat - Cash And ATM
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Bank Islam - Cash, ATM And Cheque
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Credit Card
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Charge Card
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American Express
Diners Club
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Standing Instruction
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Bank Portals / Agency
Download
Confirmation Of Assesssment Form
Contact
Mohd Ashar Bin Kasim,
Majlis Bandaraya Shah Alam,
Department Valuation and Property Management,
Majlis Bandaraya Shah Alam,
Finance Department
Lif A, Tingkat 21, Wisma MBSA, Persiaran Perbandaran,
40000 Shah Alam, Selangor.