Johor folk need not worry, says MB
JOHOR BARU: Best methods are being looked into to ensure the increase in property assessment for five local authorities will not be a burden, says Datuk Onn Hafiz Ghazi (pic).
The Johor Mentri Besar said the state had received public feedback about the increase and was sensitive as well as concerned about the people’s welfare.
“Therefore, based on the feedback from various parties, the state will examine and consider the best methods and rates so that it does not burden any party especially in the challenging economic conditions and rising cost of living,” he said in a statement posted on his Facebook page here yesterday. The new property assessment for the Johor Baru City Council (MBJB), Iskandar Puteri City Council (MBIP), Pasir Gudang City Council (MBPG), Kluang Municipal Council (MPK) and Pengerang Municipal Council (MPP) takes effect on Jan 1, 2024.
Property tax or assessment tax, which had not been increased in Johor since 2013, is a tax imposed on each proportional holding including vacant land within the local council area in accordance with the powers granted under the Local Government Act 1976 (Act 171).
Last Saturday, state housing and local government committee chairman Datuk Mohd Jafni Md Shukor said the hike in assessment for property owners was due to the increase in the property value over the past decade.
He added the last time local councils in Johor – with the exception of the Kulai Municipal Council (MPKu) – conducted a property valuation and tax (rate) adjustment was in 2013.
“MPKu managed to carry out a review of property valuation and assessment rates in 2019, before the Covid-19 pandemic. The remaining 15 local councils have yet to carry out the procedure, but they were supposed to do it in 2021.
“Due to the Covid-19 situation at that time, the state government decided to postpone the review so as to not add burden to property owners.
“By right, the process has to be conducted once every five years, but we are now about nine years behind schedule. As such, some councils are now carrying out the process as they are legally required to do so under the Local Government Act 1976 (Act 171),” he told The Star.
The new assessment will be based on valuations done in 2020, he said.
Mohd Jafni added that despite the increase in the amount of assessment that property owners have to pay, the new rate imposed by local councils would actually be lower or remain the same in most cases.
“There is a misunderstanding among many. They feel that the government (local council) is imposing a higher taxation rate, but in actual fact, the rate is low.
“But because the value of the properties has gone up by three to four times, the amount of tax they have to pay goes up as well,” he said.
