Q.
a) Explain with adequate examples why a property is subject to development charge? (16 marks)
b) What is the main different development charge under the Kuala Lumpur City Hall and the rest of the local authorities? (4 marks)
(25 marks, 2018 Q6)
A.
a) Development Charge under Town and Country Planning Act, 1976 appeared in earlier posts:
b) Development Charge under Federal Territory Planning Act, 1982 appeared in earlier post:
Before answering this question, there are a few terminologies for revision:
- density means the intensity of use of land reckoned or expressed in terms of the number of persons, dwelling units, or habitable rooms, or any combination of those factors, per unit area of land;
- plinth area means the proportion of the area of any lot to be covered by building;
- plot ratio means the ratio between the total floor area of a building and the area of the building plot - between surveyed boundary lines;
The major difference:
40. (1) Where a local plan or an alteration of a local plan effects a change of use, density, plot ratio or floor area in respect of any land so as to enhance the value of the land, a development charge at the prescribed rates shall be levied in respect of any development of the land commenced, undertaken, or carried out in accordance with the change.
Compared it to
Section 32 of the Town and Country Planning Act, 1976,
32(1) Where a local plan or an alteration of a local plan affects a change of use, density, or floor area in respect of any land so as to enhance the value of the land, a development charge shall be levied in respect of any development of the land commenced, undertaken, or carried out in accordance with the charge.
they are similar, apart from the difference on "plot ratio".
[It looks like Federal Territory Kuala Lumpur has included "Plot Ratio" whereas the parent legislature TCPA 1976 does not have "Plot Ratio". This is particularly the matter because KL is highly concentrated with skyscrapers. Hence, Plot Ratio (total floor area : land area) would be a measure of how many floors of building is being constructed. The higher the skyscraper, the higher is the Plot Ratio. For higher Plot Ratio, the developer has to pay higher development charge.]
Ref: