Assessment Tax

General information on assessment tax (city tax / gate tax) of Tanah Merah District Council, provided by the Valuation and Property Management Division.

JomPAY
Biller Code
61762
Ref-1
Tax Bill No.
Ref-2
Phone number (without area code)

Pay via internet banking: Pay Bill → JomPAY. Other methods: e-Payment.

What is assessment tax?

Assessment tax / city tax / gate tax is a tax imposed on all properties or land in the Tanah Merah District Council area.

The power to impose assessment tax is in line with the provisions of the Local Government Act 1976 (Act 171) under Section 127, which allows the Council to impose rates on properties within its administrative area.

Types of properties subject to assessment tax

  • Residential buildings
  • Commercial buildings (shops)
  • Commercial buildings
  • Industrial (factories)
  • Special properties
  • Agricultural land / vacant land

Duration and payment method

Assessment tax is levied annually but payments are divided into instalments.

InstalmentDurationPay on / before
FirstJanuary – June1/1 – 28/2
SecondJuly – December1/7 – 31/8

Payment method

  • Tanah Merah District Council Revenue Counter
  • Tanah Merah District Council Mobile Counter
  • Cheque or money order payable to “TANAH MERAH DISTRICT COUNCIL PRESIDENT” or “TANAH MERAH DISTRICT COUNCIL”
  • JomPAY: log in to internet banking, select Pay Bill → JomPAY, enter the amount, Biller Code 61762, Ref-1 (Tax Bill No.) and Ref-2 (Phone number without area code)

If the bill does not arrive at your premises, obtain the assessment tax bill at the Tanah Merah District Council Office.

Annual value and tax calculation

Annual Value is the “reasonable annual rental estimate” expected to be obtained from the property if it were let, with the landlord paying repairs, insurance, maintenance and all rates and public taxes.

Annual Value = estimated monthly rent × 12 months

  • The amount of assessment tax is a percentage rate (%) on the Annual Value.
  • The Annual Value is set by the Valuation and Property Management Department, MDTM.
  • The percentage rate is set by the State Government of Kelantan and no appeal can be made against it.

Example calculation

Annual Value RM 4,800 × 8% rate = RM 384.00 per year
or RM 192.00 every 6 months

Properties that can be exempted (Section 134, Act 171)

The State Authority may, in its discretion, exempt the following properties or any part of them from paying rates:

  • Places of worship (public places for prayer)
  • Licensed public cemeteries or crematoria
  • Public schools
  • Public places for charitable, scientific, literary or fine arts purposes and not for profit

Amendments and objections to Annual Value

The Valuation and Property Management Division may at any time amend the Valuation List if:

  • A new building is constructed
  • A building is altered, changed, demolished / rebuilt, or other improvements made to the rated property so that its value increases
  • A property is omitted from the Valuation List
  • A building or part of it is demolished, or other work done so that its value decreases
  • New title rights are issued
  • Changes to the rated property due to planning laws that increase or decrease the Annual Value

A Notice of Statement of Amendment to the Valuation List under Section 144, Act 171 will be sent to the owner to inform them of the new Annual Value.

Objection

Owners who receive the notice have the right to object to the valuation within the period specified in the notice, in writing to the Council. Objections that are admissible will be heard at the Property Valuation Objections Committee Meeting. Objections can only be made on the following grounds:

  • Property is assessed MORE than it should be
  • Property should not be assessed
  • Property is omitted and not assessed
  • Property is assessed LESS than it should be
  • Property is assessed separately / jointly that should be assessed otherwise

Empty and unoccupied properties (Section 162, Act 171)

Assessment tax is still levied even if the building or house is empty. However, the owner can apply for a remission for the period of vacancy by giving written notice to the Council within seven (7) days from the date the building is vacated.

The owner must also complete the Owner / Occupant Statement Form accurately and within the specified period.

Notice of change of ownership / sale (Section 160, Act 171)

Form I — change of ownership

When you buy a house, building or land in the Tanah Merah District Council area, inform MDTM within 3 months of the date of sale or change of ownership by filling out Form I at the Valuation and Property Management Division counter, so that the notice and bill are addressed to the new owner.

Include

  1. Agreement letter
  2. Copy of title / title extract
  3. Copy of sale and purchase agreement letter
  4. Copy of explained tax bill
  5. Copy of identification card

Form J — owner deceased

When the property owner dies, the heir or similar must inform MDTM within 1 year after the death.

Include

  1. A copy of the death certificate
  2. A copy of the ownership certificate / land title
  3. A copy of the sale and purchase agreement
  4. A copy of the explained tax bill

The processing fee for changing the owner's name is RM 30.00. The name is updated after all arrears are settled.

Change of postal address and tax confirmation

Notify the Valuation and Property Management Division if you wish to change your postal address for the delivery of the assessment tax bill, by letter, email or by visiting the Council to fill out a form. This service is free.

The application for tax confirmation by a lawyer's office, individual or company is subject to a processing fee of RM 10.00.

Valuation and Property Management Division
Tanah Merah District Council, 17500 Tanah Merah, Kelantan
Tel: 09-955 6026 / 09-955 6023 ext. 106 · Fax: 09-955 6826