Assessment Tax

ASSESSMENT TAX

​​Introduction​

Assessment Tax is a tax imposed on all ownerships and ratable 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?

  1. 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.

    VALUATION = GROSS RENTAL ESTIMATION PER MONTH X 12 MONTH


     ​ ​​CALCULATION EXAMPLE OF TAX ASSESSMENT

    Ownership Category

    ​:

    Residence (Double Storey Terrace House)

    Building Area

    ​:

    ​143.85 psf

    Rent Estimation psf

    ​:

    ​RM 4.85 psf

    Annual Gross Rental Estimation

    ​:

    ​143.85 psf x RM 4.85 psf = RM 697.67

    Rent Estimation 

    ​:

    ​RM 700.00 x 12

    ​Annual Valuation 

    ​:

    RM 8,400.00

    Rate

    ​:

    ​4%

    Tax Assessment per year

    ​:​

    ​RM 336.00

    Tax Assessment per-term​

    ​:

    ​RM 168.00​

                     
  2. 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).

    CALCULATION EXAMPLE OF VACANT LAND (RESIDENCE) TAX ASSESSMENT 

    ​Ownership Category

    ​:

    Residence (Single House)

    Building Area

    ​:​

    10,000 sq. ft.

    Market Value psf

    ​:

    ​RM 40 psf

    T.K. Rate (Residence)

    ​:

    3.5%

    Market Value

    ​:

    10,000  sq. x RM 40.00 psf

    ​Annual Value

    ​:

    RM 400,000.00 x 10% = RM 40,000.00

    Tax Assessment per year

    ​:

    ​RM 40,000.00 x 3.5% = RM 1400.00

    Tax Assessment per term

    ​:

    ​RM​ 700.00​

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: -

Types of Ownership​

​Rates​(%)
​Building​Vacant Land
Residence (Landed)​4.0​3.5
Storeyed residence​3.5​3.5
Serviced Apartments​5.0​5.0
Trade​​7.0​6.5
Industry​7.5​7.0
Agriculture​2.0​1.0
Vacant Land For Development​-​3.5

Reduction of Tax Assessment for the Disabled (OKU).

  1. The rate of the DISABLED is only applicable when the request is received from the owner of the DISABLED.

  2. 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.

  3. 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.

    ​iii. Each application must be renewed each year by:

    ​Application Period

    Decision​

    Submitting the application form before February 28 of each subsequent year.

    Eligible for a reduction per year

    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).​

Pa​​yment Period

Assessment Tax must be paid twice a year, that are on: -

  • First Term - January 1 until February 28 
  • 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:-

  1. 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.

  2. 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.

  3. Inventor​​y (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.

  4. ​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.

  5. 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: -

  1. Council Payment Counter

    • G Floor Main Counter, Wisma MBSA. 

    • Wisma MBSA Drive-in Counter. 

    • Sungai Buloh Branch Office ​

    • Kota Kemuning Branch Office.

  2. Local Authorities

    • All payment counters of the City Council / Municipal Council / District Council in Selangor State.

  3. Land / District Office

    • All Land /  District Offices in Selangor State

  4. Local Agency

    • Post Office - Selangor, Kuala Lumpur & Putrajaya

    • Tenaga Nasional Berhad - Shah Alam (Before / on the payment due date) 

    • Telekom Malaysia Berhad - Shah Alam (Before / on the payment due date)

  5. Banks

    • ​​Bank Simpanan Nasional - Cash

    • Ambank - Cash

    • Affin - Cash And Cheque

    • Agro - Cash And Cheque

    • Bank Muamalat - Cash And ATM

    • Bank Rakyat - Cash And ATM

    • ​​Bank Islam - Cash, ATM And Cheque​​​

  6. ​​​​Credit Card

    • ​Visa

    • Master Card

    • American Express

  7. Charge Card

    • Diners Club

  8. ​Standing Instruction​

    • American Express Auto Billing

    • OCBC Direct Debit 

    • CIMB Bank Direct Access 

    • Maybank Autopay

    • Citibank Auto Debit 

    • Hong Leong Bank American Express Autopay

  9. Bank Portals / Agency​

    ​Download​

    ​​Confirmation Of Assesssment Form       borang pengesahan cukai taksiran

    Contact

    Mohd Ashar Bin Kasim,
    Majlis Bandaraya Shah Alam,

    Department Valuation and Property Management,
    Lif B,​ Level 2, Wisma MBSA, Persiaran Perbandaran,
    40000 Shah Alam, Selangor.

    ​No. Tel​​​​​:​​​03 - 5522 2769/ 2754/ 2753/ 2751
    ​No. Fax​:​​​03 - 5513 8511
    ​Email​:penilaian@mbsa.gov.my​​​