MALAYSIA - September 2016

DBKK REVALUATION OF RATING AREAS SOON ...... 1 STATE NEW PROPERTY ASSESSMENT RATES ‘A POLICY, NOT A DISCOUNT’...... 2

DBKK revaluation of rating areas soon

The Kota Kinabalu City Hall (DBKK) will carry out a Revaluation Exercise for all rateable properties located within its Operation Area (Rating Area). It is in accordance with Section 74 of the Local Government Ordinance 1961 (modified 1996). DBKK Valuation Department Director, Lifred Wong said the areas will cover Tanjung Aru, Kepayan, Sembulan, Kota Kinabalu, Luyang, Bukit Padang, Kolombong, Nountun, Likas, Kuala Inanam, Inanam, Manggatal, Kuala Manggatal, KKIP, Karambunai, Telipok and Sepanggar. He said among others, the purposes of carrying out the revaluation exercise are to update various particulars related to ownership, land title deed, the properties/buildings, correspondence addresses and to exclude properties that are no longer in existence due to redevelopment or acquisition or expiry of its lease term. He said the Revaluation Exercise also aims to include missing properties or new properties or premises which have been modified or extended into the valuation list, so that the cost burden for services rendered by DBKK would be shared evenly by all the relevant parties. "The Revaluation would also enable standardisation of property values according to the current market conditions. This revaluation exercise is also in line with the advice and recommendation made by Federal Audit Department. "In order to complete the valuation exercise within a short period of time, DBKK has appointed seven valuation firms - CH Williams, Talhar & Wong (Sabah) Sdn Bhd, Smiths Gore Sabah, Taylor Hobbs, Rahim & Co International Sdn. Bhd, Knight Frank Malaysia Sdn Bhd, JS Valuers Property Consultants (E.M) Sdn Bhd and VPC Alliance (Sabah) Sdn. Bhd. to carry out the revaluation exercise," he said. Lifred said these companies personnel have been given letter of authorisation to carry out this updating exercise. Properly owners, occupiers, rate payers are requested to give full cooperation to them and at the same time to request these personnel to produce the letter of authorisation from DBKK when they inspect their respective properties. He said should there be any doubt on any of these personnel that are inspecting their properties, they should call Tel: 521800 ext. 720 (Lifred Wong), ext. 715 (Abby Mae Joe), ext. 717 (Sharfini Abd. Karim), ext. 719 (Michael Lojitan), ext. 719 (Abdul Wahid Malim) or ext. 719 (Catherine Fong). The exercise has started on Sept 1 and is expected to complete by the middle of next year. Once the re-Valuation exercise is completed, Lifred said a complete and up-to-date valuation list will be prepared for all the rateable properties. The updated valuation list will then be opened to member of the public, especially property owners during office hours, to inspect and verify the details. Thereafter, in accordance with Section 78 of the Local Government Ordinance, 1961, any person wishing to object to any valuation or particulars appeared in the updated valuation list or any other objection related to their properties appeared in the updated valuation list shall then give written notice to DBKK.

"Such objection will be considered by a Rating Appeals Tribunal which is formed in accordance with Section 79 of the Local Government Ordinance 1961," he said.

International Property Tax Institute IPTI Xtracts- The items included in IPTI Xtracts have been extracted from published information. IPTI accepts no responsibility for the accuracy of the information or any opinions expressed in the articles. P a g e | 2

State new property assessment rates ‘a policy, not a discount’

KUCHING: The new assessment rates announced prior to the May 7 state election this year are here to stay, says Assistant Minister for Local Government Datu Penguang Manggil.

Explaining further, he said the new rates counted as ‘a policy’, and not a ‘mere discount only effective for this year’.

“Whatever that had been announced, continues to stand and be effective until further directive from the government,” he told The Borneo Post.

When contacted, Second Finance Minister Dato Sri Wong Soon Koh – the then-Local Government and Community Development Minister – also gave the same assurance, stressing that the rates were not ‘a special discount treat for Sarawakians for 2016 only’.

“It’s a new policy based on the (state) cabinet’s decision – it is permanent. It is here to stay, no doubt about it,” he said.

Both Wong and Penguang were responding to queries by a reader of The Borneo Post, who went to Kuching South City Hall (MBKS) a month ago to pay her assessment fees and was told that the reduced rate was ‘only a discount’ offered to residents for this year.

“I was told by the MBKS personnel behind the counter that the reduced assessment rates were discounts given to the residents. It is not a policy, and for the time being, the discounts would only be valid for this year. The personnel said they were not sure about next year.

“What they said was in contrary to what I read on the newspaper. The way it was announced, it was as if the new assessment rates were a new policy of the state government, not a discount to please the voters because state election was around the corner.

“It would be so disappointing if the assessment rates announced were discounts for 2016 only,” claimed the reader.

On April 27 this year, when addressing reporters at a dialogue in the old State Legislative Assembly complex here, Chief Minister Datuk Patinggi Tan Sri Adenan Satem announced that the government had reduced the residential property assessment rates to help the people cope with the rising cost of living.

He added that the government had calculated the potential loss in revenue, but maintained that it could afford the subsidy.

The next day, Wong revealed via a circular the nine tiers of annual assessment rates for residential rateable holdings, which would receive between 10 to 90 per cent reductions.

Wong said the reductions applied to those paying between RM700 and RM50.01 annually, while those paying RM50 and below would have their assessment fees waived.

The new policy had been well received by many quarters as they would enjoy between 30 and 70 per cent reductions in assessment fee payment.