Faced with widespread dissatisfaction over the new property valuation and hike in assessment rates of up to 100%, local authorities in Johor say the increase is long overdue and essential in keeping services running. Five out of 16 local councils in the state have undertaken property valuation exercises, leading to adjustments in the assessment tax rate. Four councils – Johor Baru City Council (MBJB), Kluang Municipal Council (MPK), Pengerang Municipal Council (MPP) and Pasir Gudang City Council (MBPG) – have already sent out notices on the increase, while Iskandar Puteri City Council (MBIP) will be announcing it soon.
Johor Baru mayor Datuk Noorazam Osman said he took note of ratepayers’ concerns but explained that property valuation was needed in areas such as Johor Jaya and Ulu Tiram, which MBJB took over after redelineation in 2016. “These two areas have not been evaluated for about 15 years, which is why there are cases where the rate rises up to 100%,” he said. Homeowners making a beeline to lodge their objections against the increase in assessment tax, at Menara MBJB in Johor Baru.
He added that the objection period started on Sept 21 and was supposed to end on Oct 22. However, Noorazam said MBJB had decided to extend the deadline until the end of the month for people to file their objections. Local councils use revenue from assessment tax to carry out maintenance and beautification works in their jurisdiction. “So far, fewer than 1% of total property owners in the city centre have come forward to lodge their objections on the matter following the notice on Sept 21. “We have about 350,000 property owners in the MBJB jurisdiction, and so far only 1,100 owners have lodged complaints since we issued the notice about the new valuation rates,” he told StarMetro.
Those who want to object to the new valuation should also provide a private estimation of their property so that the city council could conduct a re-evaluation process, he added. Noorazam says fewer than 1% of Johor Baru property owners have lodged objections so far.
Noorazam said MBJB’s actions were in accordance with the law and approved by the state government. “If they (property owners) cannot afford to pay a lump sum, we will allow them to pay monthly instalments until next year, as long as they pay,” he said, stressing that the city council did not intend to place extra burden on the people. He highlighted that there were cases of housing areas where owners paid only RM600 in assessment tax a year but charged tenants RM2,500 in rental each month. “MBJB has also recorded tax arrears of more than RM200mil from property owners who have yet to settle their dues as of September this year,” he said.
Asman Shah says last valuation done in Pasir Gudang was 10 years ago. “Our commitments are increasing every year in terms of providing better public amenities and we do not want to end up like Birmingham City Council which was declared bankrupt. “We hope that the public can understand this,” he added. In September, Birmingham City Council, which governs the second biggest city in the United Kingdom, declared itself effectively bankrupt after failing to settle equal pay claims.
When contacted, Pasir Gudang mayor Datuk Asman Shah Abd Rahman said the last valuation carried out in the area was 10 years ago. “Under the law, a new valuation list for the purpose of reassessment needs to be done once every five years,” he said. He elaborated that excess funds collected would be used to maintain and upgrade public facilities such as roads, drains and other infrastructure. Zihan says Pengerang’s new tax rate was deferred due to the Covid-19 pandemic.
He stressed that the city council understood that the public was facing an economic crisis. “Although the value of properties have risen, the new rate imposed by MBPG is still modest, and if a new valuation list is not implemented now, there will be a huge gap, which will be a bigger burden for the people in the future. “The value of properties will continue to increase. This valuation was done by registered valuers licensed under Finance Ministry,” he said. He added that there were more than 98,000 property owners in Pasir Gudang.
Asman Shah said the reassessment of properties started in 2020 and was completed in 2022. “We have gazetted a notice of a new valuation list on Oct 19, which has been published in the newspapers on Oct 21. “The objection period is until Nov 14,” he added.
Meanwhile, MPK president Azurawati Wahid said the assessment tax collected from ratepayers would eventually go back to them in the form of services as well as infrastructure upgrades and construction. “The revenue will be used by the council to ensure cleanliness, trim grass as well as curb infectious diseases through cleaning activities. “Ratepayers will also benefit from MPK’s efforts to build, repair and maintain public facilities and infrastructure such as roads, streetlights, drainage systems, parks, recreational areas and multipurpose halls,” she said.
She added that the revenue collected would also go towards landscaping works and tree planting activities to provide more shade and aesthetics for Kluang folk. Azurawati also said that MPK had set up an area at the foyer of its building for ratepayers to submit their appeal in writing from now until Nov 1. “Every appeal that fits the criteria will be checked by the council’s property valuation dispute hearing committee after the appeal period ends,” she added.
MPP president Zihan Ismail told StarMetro that the council initially planned to impose the new tax rate in 2020 but postponed it due to the Covid-19 pandemic. “In general, MPP currently has 19,230 property holders and we have introduced a tax rate of 0.06% for residential areas and 0.45% for industrial areas. “Since we issued the notice on Oct 5, we have only received 74 objections to the new rate, out of the total of 19,230,” she said.
She further said that property owners who objected to the rate would be called in for further discussion. The objection period is from Oct 5 until Nov 2, she added. Meanwhile, MBIP mayor Datuk Mohd Haffiz Ahmad assured that any rate increase would be reasonable and not burden the people. “It has been almost 10 years since the previous property valuation exercise and there is bound to be an increase in the value of the properties. “I will ensure the burden on the people will be minimal. “In the end, the tax money collected will be for them,” said Mohd Haffiz.
