{"id":7469,"date":"2013-11-19T17:15:04","date_gmt":"2013-11-19T09:15:04","guid":{"rendered":"http:\/\/www.imoney.my\/articles\/?p=7469"},"modified":"2024-04-17T14:40:31","modified_gmt":"2024-04-17T06:40:31","slug":"are-you-prepared-for-the-new-assessment-fees","status":"publish","type":"post","link":"https:\/\/www.imoney.my\/articles\/are-you-prepared-for-the-new-assessment-fees","title":{"rendered":"Are you prepared for DBKL’s new assessment rates?"},"content":{"rendered":"
Are you prepared for the new assessment fees?<\/p><\/div>\n
DBKL’s new assessment rates proposed recently had home owners in Kuala Lumpur in an uproar with increase from 100% to 200%.\u00a0The proposal to double assessment rates for city house owners effective on January 1, 2014 has left many owners miffed and vexed.<\/p>\n
When Ibrahim Alias, a third generation Kampung Baru resident received a notice from DBKL, he was stunned that his assessment fees will be the same rate as properties in Kuala Lumpur City Centre (KLCC).<\/p>\n
\u201cFrom paying RM504 annually, I will have to fork out four times more or RM2,172 from next year,\u201d said Alias to The Star<\/i>.<\/p>\n
The justification for the shocking proposal is due to the rising property prices, which many members of the public argue is not a valid justification.<\/p>\n
Titiwangsa MP Datuk Johari Ghani was quoted in another report by The Star<\/i> that City Hall must justify the increase as it was drastic.<\/p>\n
\u201cTake Kampung Baru for instance, some home owners have told me that their assessment rates have doubled and even tripled.<\/p>\n
\u201cI don\u2019t understand why, since Kampung Baru 50 years ago and today is still the same,\u2019\u2019 he said.<\/p>\n
So, what does DBKL use the assessment fees collected for? According to the DBKL\u2019s website, assessment fee (or Cukai Taksiran<\/i>\/Cukai Pintu<\/i>) is the tax imposed by DBKL on private property such as homes, business property, industrial and vacant land located within the Federal Territory of Kuala Lumpur for:<\/p>\n If you are property owner, you will be receiving statements from DBKL on assessment fees due twice a year.<\/p>\n The current rates for assessment tax according to property category are as follows:<\/p>\n * Source: http:\/\/www.dbkl.gov.my<\/a><\/p>\n For example:<\/p>\n The annual value is based on the market valuation of your property. Some properties may be smaller but is located in a prime location; hence, the assessment fee will be higher.<\/p>\n As assessment fees are based on the market valuation of your property, which has been steadily increasing, especially in the urban areas, your assessment fees will fluctuate.<\/p>\n If you have also received the notice from DBKL on the new proposed rate and are perplexed with the new figure, here is a formula to calculate the rate of your new assessment fee.<\/p>\n Using the above example, if this year\u2019s annual value for your house is RM5,000, your assessment fee will be RM450 for 2013. However, if the annual value for next year is proposed to be RM12,000, then your assessment fees will be affected too.<\/p>\n For example:<\/p>\n In the notice from DBKL, you will be informed of the proposed annual value of your property and you will be able to calculate the percentage of increase using the above calculation.<\/p>\n Unfortunately for the above groups of people, they are feeling the pinch of the increment the most because they are not reaping the benefits of the increase in market value\u00a0<\/b><\/p>\n Is there a way out?<\/b><\/p>\n Unfortunately, as property owners we all need to pay assessment fees every year. As the new rates in the notice from DBKL are just proposed rates for 2014, members of the parliament will be responding to the proposal and a win-win approach will hopefully be decided on by December 17, 2013.<\/p>\n Federal Territories Minister Datuk Seri Tengku Adnan Tengku Mansor said an increase in assessment rates for properties in Kuala Lumpur is necessary because property prices have skyrocketed.<\/p>\n \u201cFor your information, the increase will definitely happen, but there will be different rates. We\u2019re forced to do this because the rates have not increased for 21 years,\u201d he said in the Dewan Rakyat.<\/p>\n Property prices in the Klang Valley have spiked in recent years, prompting the federal government to increase the real property gains tax in Budget 2014 to curb speculation.<\/p>\n Want to know more about other fees and charges to own a property? Check out our infographic on Malaysian home buying fees and charges <\/b>here<\/b><\/a>.<\/b><\/p>\n Still wondering if you are ready to take the plunge and purchase your first property? Find out if you are financially ready <\/b>here<\/b><\/a>.\u00a0<\/b><\/p>\n","protected":false},"excerpt":{"rendered":" The proposal to hike assessment rates effective next year has left many owners miffed. Find out what the proposed increment is like. <\/p>\n","protected":false},"author":1,"featured_media":7477,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[216],"tags":[],"class_list":["post-7469","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-updates"],"acf":[],"yoast_head":"\n\n
<\/span>How is assessment fee calculated?<\/span><\/h2>\n
<\/a><\/p>\n
<\/p>\n
<\/span>What is the proposed increment for my property?<\/span><\/h2>\n
<\/a><\/p>\n
\nHow will it affect you?<\/b><\/p>\n<\/a><\/p>\n