Rates collection in Manjung municipal council

Abstract

The aim of this study is to examine rates collection in Manjung Municipal Council. Local authorities in Malaysia have been given wide powers within the Local Government Act of 1976. The functions are not only mandatory functions but discretionary functions as well. Assessment rates is collected by the local authorities for the provision of services to the residents. Previous study shows that assessment rates have been the most lucrative source of revenue of local authority. However, the main income of local authority to provide services and development in the area is affected by the increase of rates arrears by house owners. In Manjung Municipal Council, the rates arrear at the end of year 2008 is RM 3.7 Million. Therefore a study is conducted to identify the problem of rates collection faced by Manjung Municipal Council. In the study, 100 questionnaires were distributed to respondents in Manjung council area. Besides, ways to improve the rates collection was indentified through interview with officer in Valuation Department in Manjung Municipal Council. As a conclusion, the objectives of this study have achieved which eight factors that influenced the rates collection and five ways to improve rates collection system and increase income of Manjung Municipal Council has been identified. From this study, the ways identified that can help local authority to overcome rates arrear problem and enhance the rates collection system are improve the way of rates collection, law enforcement, verify the address of owner of property, improve the services provided to public and improve the way to send bills and notices.