Tax Assessment

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, in accordance with the powers granted under the Local Government Act 1976 (Act 171). This tax is imposed on property owners who own the following types of properties:

Residential

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

Commercial

Shops, shop offices, serviced apartments, shopping malls, cinemas, offices, hotels, petrol stations, recreational centres, and others.

Industrial

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

Agricultural

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

Vacant Land

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

PROPERTY TAX CALCULATION

There are two main components in the calculation of Property Tax: Annual Value and Rate.

The Annual Value is based on the market value of your property (land value including buildings, if any) at a specific valuation level approved by the State Government. The Annual Value currently used is based on the market value as at the year 2013.

The Rate is the percentage imposed on your property value as Property Tax payable, based on the formula below:

Annual Value × Rate (%) According to Type of Holding = Assessment Tax

TAX RATE PERCENTAGE

Johor Bahru City Council has set different rates according to the type of holding as follows:

EXISTING MBJB AREA

NEW AREAS RESULTING FROM RE-DEMARCATION

ISSUANCE OF PROPERTY TAX BILLS

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

CONSEQUENCES OF LATE PAYMENT OF PROPERTY TAX

You will receive penalty notices as follows if payment is overdue:

1. A Reminder Letter will be issued, and payment must be made within fifteen (15) days from the date the notice is posted or delivered.

2. If payment is still not made, a Notice (Form E) will be issued, and payment must be made within fifteen (15) days from the date the notice is posted or delivered.

3. If payment still fails, seizure of movable property will be carried out on movable assets within your building, or auction of immovable property for properties without movable assets such as vacant land, through the Registrar of the High Court, pursuant to Section 151 of Act 171.

Charges for Notices

RECEIPT OF PROPERTY TAX BILLS

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

If you do not receive the Property Tax Bill, you may print it via the online application by registering through the MyBill link on the MBJB portal:
https://apl.mbjb.gov.my/mybill

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

METHODS OF PROPERTY TAX PAYMENT

Online Payment

• 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 Payment at:

• MBJB Tower Office

• MBJB Jalan Dato Onn Branch Office

• MBJB Johor Jaya Branch Office

• Permas Jaya Branch Office

• UTC Galeria @ Kotaraya

Property Tax Payment Kiosks:

• MBJB Tower Office

• Jalan Dato Onn Office

Payment at External Agency Counters:

• Pos Malaysia

• BSN

• Bank Rakyat

Mobile Counter (e-NOBAS)

Schedules are available on the Johor Bahru City Council website.

Payment by Post

Money Order / Postal Order / Bank Draft must be made payable to “Datuk Bandar, Majlis Bandaraya Johor Bahru” and crossed “Account Payee Only”. Please state the payer’s name, identification card number, payer’s address, and Property Tax Account Number. Ensure the Title Number, PT/Lot Number, and ownership details are valid and accurate before making payment.

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

REVISION OF ANNUAL VALUE

Revisions to the Annual Value of a holding may be made if there are physical changes to the property such as building extensions, demolition, fire damage, land acquisition resulting in land size changes, and others. Any revision will be notified to the owner through a notice under Section 144 of Act 171, stating the updated Annual Value, effective date of the new Property Tax, and the deadline for objections.

PROPERTY TAX OBJECTION

Under Section 142 of Act 171, owners who are dissatisfied with the valuation revision may submit a written objection within the stipulated period based on any of the following reasons:

• The holding has been assessed at a value higher than the rateable value;

• The holding assessed is not rateable;

• The holding has been omitted from the Valuation List;

• The holding has been assessed at a value lower than the rateable value;

• The holding assessed jointly or separately should have been assessed otherwise.

Owners will be invited to attend an objection 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 serves as a declaration by the property owner that there has been a change of ownership due to sale and purchase or inheritance. Transfer of ownership due to sale or inheritance must be made using Form I, while transfer due to death must be made using Form J.

You must register the Transfer of Ownership (Form I/J) via the PMO Online Transfer System at
http://johor.ekhidmat.my

Failure to do so within the stipulated period may result, upon conviction, in a fine not exceeding RM2,000.00 or imprisonment for a term not exceeding six (6) months, or both, as provided under Section 160 of the Local Government Act 1976.

Documents Required to be Uploaded in PMO:

• One copy of Identification Card for each owner (individual) or Form 9/13 (company);

• One copy of any of the following Title Documents:

  • Grant with the latest owner’s name (if available); or

  • Provisional Title with the original owner’s name and Form 14A (if Grant not yet issued); or

  • Sale and Purchase Agreement (front page, page 1, and First Schedule only) for flats/apartments/condominiums where Strata Title has not been issued;

• Registration fee of RM50.00 for one ownership transfer transaction in the PMO system.

ACTIONS WHEN PURCHASING AUCTION PROPERTIES

Ensure that the latest Property Tax Bill is referred to the court conducting the auction process, as outstanding Property Tax arrears will be deducted from the auction sale price in accordance with Section 268 of the National Land Code.

PROPERTY TAX REFUND / REMISSION

You may apply for a Property Tax refund or remission if your building is UNOCCUPIED/VACANT and remains in a good condition suitable for occupation. You are eligible for remission if you meet the conditions under Section 162 of the Local Government Act 1976. Application forms and conditions can be obtained from the Valuation Department, MBJB.

PROPERTY TAX VS IWK CHARGES

Property Tax and IWK Charges (sewerage charges) are two different matters. The authority to impose Property Tax is granted to the Council under the Local Government Act 1976 (Act 171), while the authority to impose sewerage charges is granted to Indah Water Konsortium Sdn Bhd (IWK) under the Water Services Industry Act 2006.

Property Tax is used to cover expenses in providing municipal services and public facilities to property owners throughout the Johor Bahru City Council administrative area. IWK charges are used to cover the maintenance costs of sewerage systems in your septic tank.

Any complaints or enquiries related to IWK charges must be directed directly to Indah Water Konsortium Sdn Bhd. MBJB is unable to respond to matters related to IWK charges due to differing statutory powers.

PROPERTY TAX VS BUILDING MAINTENANCE FEES

Property Tax and building maintenance fees are two different matters. Maintenance fees are used solely to maintain common residential areas of your property. Property Tax, on the other hand, is used to cover the cost of public facilities and municipal services throughout the Johor Bahru City Council area, such as road repairs, recreational facilities, infrastructure provision and maintenance, cleanliness management, health services, and others.

YOUR RESPONSIBILITIES AS A PROPERTY OWNER

• Pay Property Tax before the payment deadline;

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

• Inform MBJB of any change in correspondence address;

• Notify MBJB of any change of ownership by registering a Transfer of Ownership (Form I/J) through the online application at http://johor.ekhidmat.my;

• Attend the Council office and settle any outstanding Property Tax arrears (if any) before ownership transfer takes place;

• Notify the Council in writing if your building has been renovated or demolished;

• Cooperate with Council officers when the holding is inspected for Property Tax purposes;

• Inform the Council in writing if a building has been erected without approved building plans;

• Complete and return any forms issued by the Council;

• Check your Property Tax Bill via the MyBill link on the MBJB portal if you do not receive the bill (no penalty exemption will be given on the grounds of non-receipt of the Property Tax Bill).