Equitable property tax system needed for older homes


SELANGOR local councils are re-evaluating all properties, with some councils having started this in 2022.

The local authorities claimed that the last re-evaluation was done more than 10 years ago.

They say that, in-line with their standard procedure, a review based on current value of properties is due.

I received the notice on the assessment increase on June 13 and was given until July 4 to submit my feedback.

This is very short notice and grossly unfair to residents.

I live in Petaling Jaya, Selangor, and my house, which was purchased at around RM100,000 more than 40 years ago, is now valued above RM1mil.

Owners of such homes in PJ built around that time are mostly retired people surviving on pensions or EPF.

Any increase in mandatory rates would be a further burden to them, especially in the current economic situation.

The local councils should instead consider ways to reduce the financial burdens of these residents.

It is not their fault that the house they purchased 40 years ago has appreciated over the years.

Bear in mind that most of them are owner-occupants.

We understand that local councils need to collect assessments to finance maintenance of services such as street lamps, roads and rubbish collection.

What I don’t understand is –why don’t they have a fixed rate on the assessment?

Different local councils charge different assessment rates ranging from 2% to 8%.

Maybe local councils should come up with a new system of calculating the assessment tax by factoring in the age of the property and owner occupancy.

The councils could still maintain their re-evaluation of properties but they should charge a fixed rate of, say, 4%.

Then, for properties more than 20, 40 and 50 years old, a discount of 20%, 40% and 50% respectively could be given for the assessment tax.

The existing simplicity in working out the assessment rates is not friendly to Selangor residents.

Our government should also consider the well-being of all citizens.

WONG SOO KAN

Petaling Jaya

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