A Rates Notice is issued to inform the owners of the proposed annual value and rated tax to be levied.
Valuation of Rated Tax
Assessment rates imposed by Kuala Terengganu City Council in accordance with the Local Government Act 1976.
Types of Taxable Properties
Assessment Rates is imposed on the following ownership:
- residential houses
- commercial properties (shop, factory, hotel and others)
- industrial properties (factory, port and others)
Determining Rated Tax
Assessment Rate for rated properties are determined based on the following formula :
Assessment Rate = Annual Value x % Rate
- Determining "% Rate"
In general, the % rate is determined by the need of Council’s Budget Estimation or yearly cost that is borne by the council in the form of administration cost, services cost and development cost.
- Determining "Annual Value"
Annual Value = Estimation of Gross Monthly Rental x 12 months.
Gross monthly rental for residences are determined based on houses of similar type within the vicinity. Each house has a ‘rental value’ regardless if it is self-occupied, rented or left vacant due to failure to let.
Purpose of Rates Notice
According to Section 141(2), rates notices are notifications to property owners in regards to proposed annual value determined on their properties. In addition, it is to inform property owners or occupants of the rated tax that will be levied.
Objections in Regards to Rates Notice
Any persons who disagree in regards to the proposed annual value as per the Rates Notice, objections may be forwarded in writing addressed to the Kuala Terengganu City Council.
Tax Appeals Committee Meeting
Property owners who object to the proposed annual value will be allowed to represent himself/herself before the Tax Appeals Committee in the Tax Appeals Meeting to present the case in regards to the objection. If the owner is unable to attend, he/she may appoint a proxy by producing an ‘Authorisation Letter’ signed by the owner.
Notification of Objections Results
Objections results in regards to Annual Value will be notified to every rated property owners via mail.
Reappealing after Decisions are Received.
If owners are still dissatisfied with the decision made by the Tax Appeals Committee, owners may appeal to the High Court by way of initiating a motion. However, the owner needs to first pay the rated tax amount which has been determined to the Kuala Terengganu City Council. (This requirement is provisioned in the Local Government Act 1976).
Payment of Rated Tax
Owners are requested to immediately pay rated taxes once the bill is received from the MBKT Finance Department.