Why are Kajang residents facing higher assessment rates despite verbal pledges against increases?

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Kajang residents are paying more because the assessment tax percentage was cut, but property assessment values were raised much more sharply.

Kajang residents are facing higher assessment rates in 2023 because the council reduced the tax percentage from 7.7 per cent to 4 per cent, yet reassessed homes upward by a much larger amount. In the columnist’s case, the home assessment value rose to almost three times its previous level, so the lower percentage did not offset the bigger valuation. The result is a higher effective tax bill even though Selangor officials said rates would not be increased.
The key calculation is the assessment value multiplied by the tax percentage

The assessment rate is calculated as premise assessment value, or X, multiplied by assessment tax percentage, or Y. When Y falls from 7.7 per cent to 4 per cent, the bill would normally ease, but that only works if X stays the same or rises modestly. In Kajang, the increase in X outweighed the drop in Y.
The April 11, 2022 notice points to a higher payment in 2023

The council’s notice dated April 11, 2022, said residents would face a higher assessment charge in 2023. The columnist said the effective tax rate would go up and that Kajang residences were to pay more. In one example, the extra amount was RM88 in 2023.
Selangor leaders said rates would not rise, but residents still face a bigger bill

Selangor Local Government Exco Ng Sze Hann and Mentri Besar Amirudin Shari said the state would not increase tax rates. That statement is consistent with the lower 4 per cent percentage, but it does not change the fact that reassessed property values were pushed up sharply. For residents, the practical outcome is still a larger payment.
The same method could be used in other councils

The concern raised is that if this Kajang move works, it could be repeated in the other 11 councils in Selangor. The council president had earlier said each residence unit was charged 62 sen per day, or RM225.10 a year, which was described as lower than the RM1.33 a day spent by MPKj for maintenance works. That comparison was used to justify the idea that more revenue may be needed, even as residents are told rates are not being increased.

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Why are Kajang residents facing higher assessment rates despite verbal pledges against increases?

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