Q.
You are required to advise the owners of the following holdings in relation to the properties' assessment:-
a) Madam Aminah, the owner of a factory building located at Mukim of Kapar, Selangor has received a notice on a proposed Annual Value for her premise. She intends to object the proposed Annual Value. Explain the basis of objection that she can give. (10 marks)
b) The Persatuan Ibu Tunggal Melati has received a notice on the imposition of rates on their premise under the current re-valuation work of the local authority in their area. The association wishes to make an appeal so that their premise is excluded from being imposed the rates. Discuss this case and elaborate the matters that can be excluded from rates imposition. (15 marks)
(25 marks, 2014 Q1)
A.
See post on "Proposed revision of assessment rates explained".
a) Mdm Aminah
The Local Government Act 1976 allows a channel of 'Objection' under its section 142 - Objections.
There are five (5) basis for the objection:
(a) that any holding for which he is rateable is valued beyond its rateable value;
(b) that any holding valued is not rateable;
(c) that any person who, or any holding which, ought to be included in the Valuation List is omitted therefrom;
(d) that any holding is valued below its rateable value; or
(e) that any holding or holdings which have been jointly or separately valued ought to be valued otherwise,
may make objection in writing to the local authority at any time not less than fourteen days before the time fixed for the revision of the Valuation List.
Earlier post on this matter was verbatim here (2011 Q5).
Hence, Mdm Aminah may be able to object with the grounds below:
That the factory is rated beyond the rateable value:-
Such condition of wear and tear, over the period of years may have reduced the usability of the factory. Thus, the rateable value is no more as much as before.
That any holding valued is not rateable:-
Such that the traffic of the area had deteriorated and affected the functionality of the factory. For example, Mdm Aminah's factory is engaged in Laundry Business, and due to traffic jam at the area, the transportation of the laundry had impaired business. This impaired business viability cannot be rated.
That omission had happened:-
Such that the lease condition of the land had left with limited years and the factory is no more attractive for renewal. This is not calculated in the valuation. A deduction or adjustment is needed.
Ref:
Section 142 Local Government Act 1976, available at
http://www.agc.gov.my/Akta/Vol.%204/Act%20171.pdf
Assumptions are by own account.
b) Persatuan Ibu Tunggal Melati
The law that can be sited is the Local Government Act 1976, particularly S.134 - Exemption from Rates be allowed for when any holding or part thereof is used exclusively -
S.134(d) as public places for charitable purposes or for the purposes of science, literature or the fine arts,
and not for pecuniary profit, the State Authority may at its discretion exempt such holdings or such part thereof from the payment of any rate.
Thus, Persatuan Ibu Tunggal Melati can write to the Valuation and Property Services Department, Jabatan Penilaian dan Perkhidmatan Harta (State JPPH) for the appeal.
Key elements for consideration are:
- Charitable course
- Not-for-profit
- For public - no restriction or selection
- Furnish the annual returns to JPPH (S.140), as to indicate the area, situation, quality, use and rent thereof and to give all such information as may be necessary for the preparation of the Valuation List.
Earlier post on this is verbatim from the Act.
Other types of holdings exempted are:
- Place of religious worship
- Burial ground or crematoria
- Public school
Ref:
Section 134, Local Government Act 1976, available at
http://www.agc.gov.my/Akta/Vol.%204/Act%20171.pdf