SHAH ALAM: The Selangor government has approved a 25% increase in assessment rates for all local councils, effective Jan 1, 2025, despite public outcry.
Local government committee chairman Datuk Ng Suee Lim said there is a need to update outdated property valuations and improve local government services.
While the state government had initially allowed the local councils to propose rate increases within a 25% cap, ratepayers filed objections.
Ng acknowledged their concerns but said the state government had carefully considered each case.
“We went beyond and investigated 287,000 objections and validated 230,000 of them,” he said.
He added that many local councils have been using decades-old valuation rates, leading to significant undercharging.
“For example, the Sabak Bernam District Council still uses the 1986 rate, followed by Kuala Langat Municipal Council (37 years), while the other nine local councils are using the yearly rates of more than 20 years (ago),” Ng said during a briefing on the assessment rates at Wisma Dewan Negeri Selangor here yesterday.
While the 25% cap might seem steep, Ng said property owners will still benefit from a 75% discount.
He cited the example of an apartment owner who currently pays RM100 per year, adding that with the new valuation, the annual rate would be RM200.
However, due to the cap, the actual increase will only be RM25, bringing the total to RM125, Ng said.
He added that the state government had postponed the implementation of new rates since 2019, taking into account several factors including the economic situation.
“This step (new rates) is taken to ensure greater compliance and effective enforcement in the field of assessment and public service in line with the Local Government Act 1976.
“This is based on new property values that must be prepared and completed by all local councils every five years.”
When asked about the various costs the local councils incurred that influenced the assessment hike, Ng cited solid waste management as one of the reasons.
“At the moment, KDEB Waste Management has a seven-year cleaning contract for each local council.
“Before, the minimum wage was RM900. Now, it’s RM1,700.
“When we signed the contract, we could not put the old price.
“When it comes to the cost for waste management at the local councils, this comprises about 40% of their expenditure.
“We also need to consider the cost for tipping fees and enforcement operations for illegal dumping,” Ng said.
He also said the new rates would boost the revenue of local councils’ by RM355mil annually, adding it will be used to improve infrastructure and public services like tree maintenance and drainage cleaning.
With the extra revenue, Ng said he will advise local councils to update their short- and long-term plans on their websites.
He also announced continued assessment exemptions for all low-cost housing in the state, like Rumah SelangorKu, which involved about RM60mil.
Ng also said they provided targeted exemptions for traditional villages in Selangor, and for 2024, a total of 2,849 have been exempted.
