Property Hunter Magazine Property Hunter Magazine Issue 50 - January 2014 | Page 63

Hike in Assessment Rate Myth Busted by Chur Associates Bandar Tun Razak MCA Division Against Assessment Rate Hike The concept behind this definition is of a hypothetical landlord renting out the land and buildings to a hypothetical tenant who makes use of the land and buildings. abolishment and reduction of several subsidies as well as the implementation of Goods and Services Tax by 2015, the public will be greatly burdened,” he told reporters at his office in Wisma Mirama, Jalan Wisma Putra. In fact, the amount of assessment payable per annum is based on the formula below:- Chew said the valuation amount in the notice was also not clearly explained. Proposed Annual Value X Rate of Assessment = Assessment payable per annum Pursuant to section 142(1) of LGA, whoever disagrees with the Proposed Annual Value may lodge an objection in writing to the Property Management and Valuation Department of DBKL on or before 17.12.2013 on the ground that any land or building which is rateable is valued beyond its rateable value. In a scenario; Mr Lim and Ms Teresa are the owners of a bungalow house in Taman Seputeh, Kuala Lumpur. Recently, they received a letter from Kuala Lumpur Town City Hall (“DBKL”) namely, Notice of Revision of the Valuation List. When they received the notice, they are flabbergasted, thinking they are required to pay up to a “proposed annual value” of RM36,000.00 (as shown in the sample letter above). Is it true? What can they do? MYTHBUSTED False. The amount stated in the Notice of Revision of the Valuation List is the Proposed Annual Value. “Annual value” is defined in Local Government Act 1971 (“L