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1. Definition of Assessment Tax and who is subject to pay it

What is Assessment Tax?

  • Assessment tax or quit rent is generally levied on all holding property located within the jurisdiction of the Bachok District Council. It is a tax for the municipal services provided directly for the owners of the properties, as provided for under the Local Government Act 1976, ACT 171.

What is the basis used in levying assessment tax on a specific property?

  • There are two gauges used under the provisions of the Local Government Act 1976 which are "annual valuation" and "additional valuation". The use of these two measures of assessment lies at the discretion of the Local Enforcement with the agreement of the State Authorities.

Who has to pay assessment tax?

  • Owner of the holding property
  • Tenant (as per tenancy agreement)

Why is assessment tax levied?

  • Holding properties are subject to assessment tax if located within the jurisdiction of the Local Authorities, as provided for under the Local Government Act 1976.
  • Part of state taxation levied on residents falls within the responsibility of the Local Authorities.

2. Categories of property which are taxable and exempted from tax:

What are types of holding properties which are subject to assessment tax?

  • Under Section 2 of the Local Government Act 1976, holding properties include land and/or building, owned jointly or independently, including joint and partitioned lots. These include;

    * Residential homes
    * Shop houses
    * Factories
    * Cinemas
    * Hotels
    * Petrol Stations
    * Other premises both temporary and permanent

What are the holdings (property) exempted from assessment taxes?

  • Public areas for prayers
  • Licensed burial grounds and public crematoriums
  • Public schools
  • Public areas for the purpose of charity or for science, literature or fine arts.
  • In other words, these are holdings (property) which are not meant for business.