With reference to Town and Country Planning Act, 1976 (As amended), calculate the Development Charge of the following;
(a) Ali proposed to develop a housing scheme of 400 residential units on his 10 acres plot of land. The local plan indicated that the development density in that area is 60 persons per acre. The Development Charge payable is RM6,000 per unit. (10 marks)
(b) Raju proposes to construct a shop-office with a floor area of 560 square metre on his Lot 2334 Mukim Kapar which a land area of 130 square metres. The plot ratio in the vicinity is 1:2.5. The Development Charge payable is RM60.00 per square metre. (10 marks)
(c) Christina proposed a development of a petrol station on Lot 335, Mukim Petaling. The category of land use is building and express condition states as residential. The local plan indicates that the lot is zoned for commercial use. The development charge for change of land use is at 30% of the increase in market value. (5 marks)
(25 marks, 2015 Q4)
(22-23.09.2015)
A.
(More readings go here - How to calculate Development Charge?)
(a) Ali 400 residential units, 10 acres, 60 persons per acre. RM6,000 per unit.
Generally, the number of inhabitants in a residential unit is taken to be 5 persons (reference to Ismail Yusof*). Hence, 400 residential units would have 2,000 residents. This is a density of 200 persons per acre (2,000/10).
This is an increase in density (ketumpatan) from 60 to 200 per acre.
In other words, allowable numbers of units in 10 acres is 60 x 10 = 600.
The excess is 2,000 - 600 = 1,400 persons
This is converted back to units: 1,400 / 5 = 280 units in excess
This 280 units will be levied development charge 280 x RM6,000 = RM1,680,000.
Ref:
Ismail Yusof. PELAKSANAAN CAJ PEMBANGUNAN DI DEWAN BANDARAYA KUALA LUMPUR. Available at
http://ismailyusof.blogspot.my/2006/05/pelaksanaan-caj-pembangunan-di-dewan.html
(b) Raju 560 sqm on 130 sqm land, plot ratio 1:2.5, RM60 per sqm.
560 sqm / 130 sqm = 4.3; which means the new plot ratio is 1:4.3 instead of 1:2.5, the excess plot density needs to be accounted for development charge.
The extra sqm is 560 - (130 x 2.5) = 560 - 325 = 235.
Development charge required to be paid = 235 sqm x RM60 per sqm = RM14,100.
(In fact, there are variations between States on the percentage of excess value to be taxed for development charge. The general rate is 30% of the increase in value in Selangor and KL, where as as low as 20% to 15% in Suburban States like Kedah and as low as 10% in Kelantan)
(c) Christina petrol station from residential land, zoned for commercial, 30% of increased market value.
There is a change of use or Category of use from 'Residential' to 'Commercial' (petrol station).
The new value of the land is to be ascertained by a registered Valuer or JPPH valuation report and such new value is compared to its current value.
The increase in value is charged a percentage - here 30% as Development Charge payable by Christina.
An example is extracted from Klang Municipal Council below for better understanding.
Ref:
Caj Pemajuan, Majlis Perbandaran Klang. Available at,
http://www.mpklang.gov.my/c/document_library/get_file?uuid=a42f9dc7-1dcd-4eae-bce4-15750ab37bc5