What is Tax Assessment (Quit Rent)?
1. WHAT IS TAX ASSESSMENT?
Assessment rates are local taxes imposed for ownership and occupation of rateable holding situated within Council's area of jurisdiction.
2. WHO ARE THE TAX PAYERS?
Occupiers / owners of rateable holdings. If you own a house, a shop, a hotel, a service station or any other rateable holdings (even vacant lot) you are liable to pay the tax assessment rates. If you are occupying building on any land which is not held under a separate document of title or on land reserved for a public purpose you shall also be liable to pay rates.
3. WHY PAY THE TAX?
Rates are essential to assist to finance the Council's expenditure in providing public services and public facilities for the benefit of the community in the Council's area.
4. WHEN TO PAY?
The Tax Assessment is to be paid twice a year, which is :
- First ½ year – 1st January to 28th February.
- Second ½ year – 1st July to 31st August every year.
Assessment paid after the last date for payment shall be subject to a surcharge or default fee of 1% per month or part thereof.
5. WHAT HAPPENS WHEN I DON'T PAY ON TIME?
According to Akta 171, action will be imposed to you as follows:
- Notice (Form E) will be issued to you. You will need to settle payment 1 day from the date of Notice. Penalty of 2% from the arrear will be imposed to you following Seksyen 147(1).
- * if you fail, an arrest warrant will be issued to you. This warrant allows the Council to confiscate your belongings in your premises or obstructure your premises from operating, or auction your premises through Registrar of High Court following Seksyen 151. A 10% will imposed for payment of warrant.
6. HOW TO AVOID PENALTY OF COURT ACTION?
Immediately pay before 28th February or 31st August every year.
7. WHAT SHOULD I DO IF I DIDN'T RECEIVE ANY BILL?
Please come in person to Property and Valuation Unit, Kota Tinggi District Council to get your bills. Please bring:-
- Lot No or Premises No. or Land allocation;
- Account No. (if any); or
- Past bills for reference
8. WHAT IS MY RESPONSIBILITY AS A TAX PAYER?
The most important roles is to pay the tax assessment before the date.
You should :-
- To check at the Council for levy of assessment rates.
- To pay rates on time.
- To notify the Council of any change in postal address.
- To supply P. O. Box No. if available.
- To notify the Council in writing or on Form F obtainable from Council' office of change of ownership. To extend a copy of the Memorandum of Transfer or up to date Extract of Title or Sale and Purchase Agreement.
- To check at Council's office and settle any outstanding rate before change of ownership takes place.
- To give full cooperation to Council staff when they inspect holdings for rating purposes.
- To notify the Council in writing if a building has been erected without building plan.
- To complete and return Forms sent by the Council.
- To collect at the Council's office copy of the assessment bill if not received. (No waiver of default fee is granted for non-receipt of assessment bill).
9. WHAT SHOULD I DO IF I AM JUST A TENANT OF THE PREMISES?
You can provide the bil to the owner for immediate payment. If the owner fails to pay, your belongings in the presmises will be confiscated. Therefore you shoul protect yourselves by paying the rent to the Council until arrears is paid. The clause of Seksyen 151(6). Akta 171 Kerajaan Tempatan, will protect you!
10. WHY IS MY RATE DIFFERENT THAN MY NEIGHBOUR?
Assessment rates may differ depending on the:-
- Type of buildings
- Floor area
- Location
- Construction Material
- Usage
11. AM I ENTITLED FOR REBATES IF MY PREMISES IS EMPTY / NO TENANT?
If your building has no tenant or empty, you must inform the Council. You will be entitled for the rebate if you fulfill the conditions under Regulation 5 and 6 of the Local Authorities (Rating) Regulations 1997.
12. WHAT SHOULD I DO IF I WANT TO BUY A BUILT PREMISES (HOUSE / BUILDING) OR LAND?
Check with the Council for the registered name and any arrears to the premises or land in order to avoid from any regrets in the future. Seksyen 146, Akta 171 enforce that settlement any arrears are of the owner's responsibility. You are also advised to check with realty that the premises or land taxes is paid.
13. WHAT SHOULD I DO IF I HAVE CHANGED OR SOLD MY VACANT LOT / PREMISES OWNERSHIP, OR INHERIT IT?
Inform the Council with filling in Form 1 and Form J within 3 month after the change of ownership. Action will be taken following Seksyen 160(6) Akta 171 for failure to inform.
14. WHAT IF I CANNOT AFFORD TO PAY THIS SETTLEMENT?
The Council may consider payment by installments. Please come in person to Propery and Valuation Unit, Kota Tinggi District Council for appeal and consideration with our officers here. The Council is always ready and willing to consider your problems on Tax Assessment.
Difference between Quit Rent and Property Tax
WHAT IS LAND TAX?
Land Tax is tax paid by the owner to State Authorities (not Local Authorities). Land tax must be fully paid every year on 1st January and will become an arrears from 1st June.
WHAT IS THE DIFFERENCE BETWEEN TAX ASSESSMENT AND LAND TAX?
Tax Assessment, also known as Quit Rent, is paid to Local Authority and is paid every half a year. The tax assessment bill is blue in colour
Land tax is imposed to land owners and is paid to State Authorities once every year. The bill is yellow in colour.
