By Emily Visser
THE more than 800 000 registered property owners in Joburg have only the rest of this week to comment on the City's new proposed rates policy. The new rates policy will come into effect in July 2008.
"For the past three months we have been soliciting comments from the public on the proposals in the draft policy. We still want to hear suggestions from the residents of Joburg," confirmed Parks Tau, the member of the mayoral committee for finance and economic development. Stressing the need for public participation, Tau said the recommendations in the draft policy were just that - recommendations. "We will seriously consider the comments we receive from the public and that's why it is important for organisations or people who may be affected by the recommendations to send us their comments. Without input from the public we will have to put our recommendations to the council for approval." The Municipal Property Rates Act of 2004 requires municipalities to apply different tariffs to the various categories of property. According to the Act, all properties valued at R15 000 or more will be charged rates according to existing zoning categories and categories of properties. Therefore, different assessment rate tariffs may be levied against different categories of property. In the past a single tariff with various rebates and remissions applied. Differential rates will apply to the following categories: business, commercial and industrial; residential property; residential property with consent use; municipal property: not rateable; municipal property: rateable; property owned by the State or an organ of State; farming land used for bona fide farming; public service infrastructure; property used for multiple purposes; agricultural holdings used for agriculture; and mining properties. Initial estimates indicate that many property owners will see a rise in their rates payments as a result of the improved rates assessment guidelines. The property boom Joburg has experienced has resulted in a sharp rise in property values over the past five years. The proposed rates policy marks the first time that properties will be valued according to the market value of the whole property as a single unit. The Act defines the market value of the property as the realistic price of a property in the open market between a willing buyer and willing seller. And what's more, the new rates assessment will also take any improvements made into consideration instead of valuing properties on the land value only.Joining up
In addition, about 155 000 individual sectional title properties would be paying rates for the first time, Tau pointed out. In the past sectional titles rates were levied against the body corporate.
But Tau stressed that many property owners would see their rates bill reduced. "The intention remains to have a threshold below which rates won't be levied and all indications are that there are a significant number of properties that will be exempt from rating and a significant number of properties that will be paying rates for the first time."
The policy stipulates that automatic relief from rates will no longer apply. Instead, organisations or individuals who qualify for a rebate will have to make a written request for the rebate to be applied to their property. The draft rates policy suggest pensioners who own properties worth more than R500 000 and/or have an income of more than R5 000 a month will not qualify for a rebate. This is still open for discussion.
Some categories or groups owning and occupying residential property that qualify for rebates are:
- Non-pensioners with proof of annual income falling below the limit determined by the council from time to time;
- Residents dependent on a state social security grant;
- Organisations that, in the opinion of and to the satisfaction of the council, care for the aged that own property that is used for that purpose;
- Owners of property in the inner city which was re-zoned for residential purposes subsequent to 1 July 2001;
- Religious communities in whose name property is registered and used primarily as a place of public worship;
- And owners of heritage sites declared as such, among others.
PO Box 1450
Johannesburg
2000 Commment can also be faxed to 011 381 9642. However, correspondence by email is preferred. Send this to ratespolicy@joburg.org.za. Enquiries can be directed to the City's rates and taxes directorate by phoning its call centre, Joburg Connect on 011 375 5555 and selecting the option for rates policy.
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