If assessment-rate percentage drops, why can total payments still rise?

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Total payments can rise even when the assessment-rate percentage drops
Total payments can increase when the premise assessment value (X) rises enough to outweigh the lower assessment tax percentage (Y). The assessment rate is calculated by multiplying X by Y, so a significant jump in X can lead to a higher overall amount even if Y falls. In Kajang, homes were reassessed dramatically upwards, and the overall payment was higher despite the tax percentage dropping from 7.7% to 4%.
The assessment rate formula links X and Y
The assessment rate is calculated by multiplying the premise assessment value (X) by the assessment tax percentage (Y). That means the final quantum depends on both numbers, not only on the percentage rate. If X increases substantially, it can produce a higher result even when Y decreases.
Kajang saw a large reassessment of home values
In Kajang, homes were reassessed dramatically upwards, with the example given stating that one residence’s assessment value was almost three times higher. This increase in X is described as large enough to outweigh the drop in Y from 7.7% to 4%. As a result, residents were told they would pay more in 2023.
A lower tax percentage does not automatically mean lower bills
The situation is framed as “both things” being true: the tax percentage can drop while the effective tax rate and payment outcome can still go up. The key condition is that the increase in X outweighs the decrease in Y. In the columnist’s example, RM88 was cited as the amount that would be “more” in 2023, even with the reduced percentage.
Officials restated the “no increase” position while reassessment changed outcomes
Selangor Local Government Exco Ng Sze Hann restated that the state would not increase tax rates, and Mentri Besar Amirudin Shari backed the restatement. The argument presented is that these statements can be consistent with the payment outcome because reassessment changes the premise assessment value (X). Therefore, the percentage drop alone does not determine what residents ultimately pay when reassessment raises X.

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If assessment-rate percentage drops, why can total payments still rise?

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