Assessment Tax

Assessment tax is a tax on properties under the Seberang Perai Municipal Council’s jurisdiction such as private homes, business properties (stores, complexes, hotels etc), industrial properties (factories, ports etc) and lands (empty without structures, agriculture lands, and land approved for array)

The assessment tax can be exempted if the building is demolised or destroyed in a fire, storm or due to other causes.

The quit rent imposed on every land is in accordance with the land titles written off by the State Government according to the provisions under the 1966 National Land Code. Meanwhile, the assessment tax imposed by the Council is in accordance with the 1976 Local Government Act.

No. There is no allocation under the Local Government Act 1976 that enables the Council to give concession on houses occupied by the owners.

The payment period for the assessment bills is as below:

1/2 Year
Payment Period
First 1st January - 28th February / 29th February
Second 1st July - 31st August

If you pay up only after the above mentioned period, that is after 28 or 29th February and 31st August, a Notice (Borang E) with amount RM10 will be charged on you on 1st March dan 1st September.

If you still don't settle the payment after 15 days receiving the Notice (Borang E), warrant of attachment will be served on you together with a RM50.00 warrant fee. The warrant gives MPSP officers power to do the following:

  • Seize (confiscate) movable properties in the building

  • Auction the building / land through auctioneers appointed by MPSP

Yes, MPSP can refuse to process the applications from the owners who don't settle the assessment arrears for the following:

  • Approval for Business License for the related building
  • Approval for Layout Plans
  • Approval for Building Plans
  • Approval for Occupational Certificates
  • Check with MPSP first to make sure there's no assessment arrears for the related properties. Checking can be done by lawyers or management agents who manage the properties.
  • Inform MPSP by filling Borang I or Borang J (Sales Notice or Change of Ownership [Sek 160, AKT 1976] ) and submit together supporting documents related to the change of ownership 3 months after the change is completed. If you fail to do this, MPSP will take legal action according to Section 160, Local Government Act. All lawyers fees incurred will be claimed by the lawyers from the property owner.
(a)
When any holding or part thereof is used exclusively :-
(i)
As public places for religious worship;
(ii)
As licensed public burial grounds or crematoria;
(iii)
For public schools;
(iv)
As public places for charitable purposes or for the purposes of science, literature or fine arts; and
(b)
Holdings are used not for pecuniary profit; and
(c)
Obtain the approval of the Planning Approval Plan (PAP) and the Certificate of Fitness for Occupation (OC) / Certificate of Completion and Compliance (CCC) for the purposes of use as stated in 13(a).
Any holding that meets all of the criteria (a) to (c) is eligible to apply for the Exemption of Assessment Tax under Section 134, Act 171.
(a)
When any holding or part thereof is used exclusively for recreational, social or welfare; and
(b)
Holdings are used not for pecuniary purposes; and
(c)
The holding shall be owned by a legitimate Association and registered with the Registrar of Societies Malaysia; and
(d)
The use of the holding is in accordance with the approval of the Planning Approval Plan (PAP) and the Certificate of Fitness for Occupation (OC) / Certificate of Completion and Compliance (CCC) for the purposes of use as stated in 14(a); and
(e)
The holding shall operate and be used for the purpose of carrying out the activities of the Association only and not used by the other parties for the other purpose.
Any holding that meets all of the criteria (a) to (e) is eligible to apply for the exemption or reduction of Assessment Tax under Section 135, Act 171.