Meaning of Property Tax

Property Tax or Assessment Tax is a tax imposed on every rateable holding including vacant land within the jurisdiction of Johor Bahru City Council (MBJB), in accordance with the authority granted under the Local Government Act 1976 (Act 171). It is a tax imposed on property owners who own properties such as:

Residential

Terrace houses, semi-detached houses, detached houses, townhouses, flats, apartments, condominiums, shop houses and others.

Commercial

Shops, shop offices, serviced apartments, shopping complexes, cinemas, offices, hotels, petrol stations, recreation centres and others.

Industrial

Terrace factories, semi-detached factories, cluster factories, detached factories, workshops and others.

Agricultural

Oil palm plantations, vegetable farms, flower gardens and others.

Vacant Land

Agricultural lots, residential lots, industrial lots, development land and others.

Issuance of Property Tax Bills

Property Tax Bills are issued and must be paid twice a year:

Consequences of Late Property Tax Payment

You will receive the following penalty notices if you fail to pay your Property Tax on time:

1. Reminder Letter will be issued and must be settled within 15 days from the date the notice is posted/delivered.

2. If still unpaid, a Notice (Form E) will be issued and must also be settled within 15 days.

3. If payment is still not made, seizure of movable property within the building will be carried out, or auction of the property (for properties without movable assets such as vacant land) through the High Court Registrar as provided under Section 151 of Act 171.

Charges for Notices

Receipt of Property Tax Bills

Property Tax Bills are sent based on the registered correspondence address of the owner (developer or previous owner) recorded in the existing MBJB database system.

If you do not receive the Property Tax Bill, you may print it through the online application by registering via MyBill in the MBJB portal:

https://apl.mbjb.gov.my/mybill

If the billing address differs from your residential address, you must visit the MBJB portal at www.mbjb.gov.my to obtain the Application Form for Address Change Notification (P-03) and submit it to the Valuation Department, MBJB Tower for updating your mailing address.

Property Tax Payment Methods

Online Payments

• JOMPAY (Property Tax Only – Biller Code 4317)

• e-khidmat

• PBTPay

• JOHORPay

• Maybank

• CIMB Clicks

• HSBC

• Pos Online

• Bank Rakyat

• Bank Simpanan Nasional

• AmBank

Cash or Debit/Credit Card Payments at:

• MBJB Tower Office

• MBJB Branch Office Jalan Dato Onn

• MBJB Branch Office Johor Jaya

• Permas Jaya Branch Office

• UTC Galeria @ Kotaraya

Property Tax Payment Kiosks

• MBJB Tower Office

• Jalan Dato Onn Office

Payments at External Agency Counters

• Pos Malaysia

• BSN

• Bank Rakyat

Mobile Counter

• e-NOBAS mobile counter (schedule available on the MBJB website)

Payment by Post

Money Order / Postal Order / Bank Draft must be made payable to:

“Datuk Bandar, Majlis Bandaraya Johor Bahru”
and crossed “For Payee’s Account Only.”

Please include:

• Name

• Identity Card Number

• Payer’s Address

• Property Tax Account Number

Before making payment, ensure that the Title Number, PT/Lot Number and ownership details are correct.

Starting 25 October 2020, MBJB no longer accepts cheques (personal/company) for all services and bill payments.

Amendment of Rateable Value

Amendments to the rateable value of a holding may be made if there are physical changes to the property, such as:

• Building extensions

• Building demolition or fire damage

• Land acquisition affecting land size

• Other related changes

Any amendment will be notified to the owner via notice under Section 144 of Act 171, stating the revised value, effective date of the new property tax, and the deadline for submitting objections.

Property Tax Objections

Under Section 142 of Act 171, property owners who are dissatisfied with the valuation amendment may submit a written objection within the stipulated period for reasons such as:

• The holding has been valued higher than the rateable value

• The holding should not be rateable

• A holding has been omitted from the Valuation List

• The holding has been undervalued

• The holding has been jointly or separately assessed when it should be assessed differently

The owner will be invited to attend a hearing session and must bring a valuation report prepared by a private valuation company to support the application.

Application for Transfer of Ownership

This notice informs the Council that a change in property ownership has occurred due to sale and purchase or inheritance.

• Form I – Transfer due to sale or inheritance

• Form J – Transfer due to death

Registration must be done through the PMO Online Transfer System:

http://johor.ekhidmat.my

Failure to register within the stipulated period may result in a fine not exceeding RM2,000, imprisonment not exceeding six (6) months, or both, under Section 160 of the Local Government Act 1976.

Documents Required for Upload in PMO

• Copy of Identity Card for each owner (individual) OR Form 9/13 (company)

• Copy of one of the following ownership documents:

  • Land title with the latest owner’s name (if issued)

  • Temporary Title with original owner’s name and Form 14A (if title not yet issued)

  • Sale and Purchase Agreement (front page, page 1 and First Schedule only) for flats/apartments/condominiums without strata titles

• Registration fee: RM50.00 per transaction

Action if You Purchase Auctioned Property

Ensure that the latest Property Tax Bill is verified with the court conducting the auction, as any outstanding property tax will be deducted from the auction sale price under Section 268 of the National Land Code.

Property Tax Refund / Remission

You may apply for a refund/remission if the building is vacant and unoccupied but still in good condition for occupation.

Remission eligibility is subject to Section 162 of the Local Government Act 1976.

Application forms and conditions can be obtained from the MBJB Valuation Department.

Property Tax vs IWK Charges

Property Tax and IWK charges (sewerage charges) are different.

• Property Tax is imposed by the Council under the Local Government Act 1976.

• Sewerage charges are imposed by Indah Water Konsortium Sdn Bhd (IWK) under the Water Services Industry Act 2006.

Property Tax funds municipal services and public facilities within MBJB’s administrative area, while IWK charges cover maintenance of sewerage systems.

For enquiries regarding IWK charges, please contact Indah Water Konsortium Sdn Bhd directly.

Property Tax vs Building Maintenance Fees

Property Tax and building maintenance fees are different.

• Maintenance fees are used only for maintaining shared facilities within the residential building.

• Property Tax is used to fund public infrastructure and municipal services across Johor Bahru City, such as:

  • Road repairs

  • Recreational facilities

  • Infrastructure development and maintenance

  • Cleanliness management

  • Public health services

Your Responsibilities as a Property Owner

• Pay Property Tax before the due date

• Check with MBJB whether your property has been assessed for Property Tax

• Inform MBJB if your correspondence address changes

• Notify ownership changes by registering a transfer application (Form I/J) through the online system at http://johor.ekhidmat.my

• Settle any outstanding Property Tax before ownership transfer

• Inform the Council if the building has been renovated or demolished

• Cooperate with Council officers during property inspections for tax purposes

• Inform the Council if buildings are constructed without approved plans

• Complete and return any forms issued by the Council

• Check the Property Tax Bill through MyBill on the MBJB portal if you do not receive the bill
  (No penalty exemption will be given for failure to receive the bill)