Tuesday, July 26, 2011

Quit Rent and Assessment

What is Quit Rent? This is a government tax on the land you owned or building sitting on the land you occupied. This is a feudal land tax system inherited from the British. Basically, it is a rent paid to the government for the use of the land. That is the reason it is called QUIT RENT.

Assessment is a local government(Municipal) tax on each and every household. Each house has one door, so in the Malaysian context is called DOOR TAX (Cukai Pintu). This is a tax imposed by the local (municipal) government, such as DBKL, MBPJ, MBSJ, MPAJ, MPSA. The tax is collected for the provision of services like garbage collection, street lighting, drainage, road and landscape maintenance, sewage, health and environment control. 


On top of this, the business operators have to pay a long list of licence fees to the Municipal government.Some business has up to twenty (20) licences to pay. So, the saying goes, "Malaysian local governments are blood suckers".

Quit Rent is tax by the State government. This is billed yearly and must be paid before the end of May of each year.

The Assessment is billed by the respective Municipal government of the areas. The tax is billed semi-annually. The first half year bill must be paid before the 28 February and the second half year bill is due before the 31 August. 

Penalty is imposed by both the state and municipal government for late payment of Quit Rent and Assessment.

The collective Quit Rent for Suria Kinrara is computed by Sentosa Restu in the attachment below.
This is the bill for the whole Komplek Suria Kinrara
This is share among all the owners based on the area of your unit.

This computation of Quit Rent and Assessment apportionment is done by Mr. Gan of Sentosa Restu. Not very perfect but acceptable.  Final figure looks reasonable.



This is the MPSJ bill for January to June 2011
The management company, FFMS, has billed every owner the Quit Rent amount correctly. But the Assessment for 2011, FFMS has billed owners for the full year, while MPSJ has only billed for first half year.

FFMS has no authority to bill the owners for the full year Assessment, when MPSJ bill every six month. Moreover, for the second half year from July to December 2011, MPSJ will bill each and every owner individually  Just wait for their bill to come, pending review of owners' protest.

So, the Assessmment billed by FFMS should be RM34.00 and NOT RM68.00. Please ensure that the management company credit back the RM34.00 to your account.

Another reminder to owners, FFMS has wrongfully bill the owners for RM60.00 for the car park access card. They have no right to collect this sum. This car park access card system is sanctioned by the Court, to be provided to owners in lieu of the LAD forgone earlier.


The assessment and the car park access card was charged to your account in April 2011 and offset against your first maintenance payment of RM580.00, upon your collection of the keys.









2 comments:

ira said...

why do we have to pay quit rent when the house was under construction? did you pay the amount totalling 1k++ during the handover? it has the quit rent for several years.

Anonymous said...

Very detail n clearly explained with real case example.

Thanks a lot !

From
a property management student