New Johannesburg rates system to be implemented next year
From July next year, new property rates will come into effect, which will cost the city council R18m to implement. This is part of a national standardised rating system in terms of the new Municipal Property Rates Act.
The new rates system requires that all municipalities rate property on the combined value of land and improvements and is the most extensive change to the taxation system of local government in recent years. Only the value of the land was used to assess city property owners in the past.
In future, residential, commercial, industrial, agricultural and government property will be taxed. Sectional title owners will have to pay rates individually.
Rate hikes would be phased in over three to four years to lessen the effect and phasing would be extended to private schools and those paying rates for the first time.
According to Parks Tau, mayoral committee member for economic development, the city is not planning to increase rates by more than the inflation and certain categories of properties would receive rebates or exclusions, such as those belonging to pensioners, public benefit organisations and homes where the value was below a specified amount.
According to Johannesburg City manager Mavela Dlamini, the city is using a range of methods to evaluate properties, from inspections to aerial photography, building plans and an analysis of sales transactions within a suburb to track market trends. Property will be re-evaluated every four years by the council.
Tau said that the city did not want to discourage residents from investing in property and would be sensitive to large increases in rates. According to him, improvements to property are investments that attracted higher selling prices in the long term.
The residents of Johannesburg will get two opportunities to make submissions on the new rates, the first will be next month when they can submit comments on the draft rates policy for the city which can be fount on the city website and at People’s Centres in Johannesburg. They will have 90 days to comment.
The second opportunity will come in February, when residents will have 90 days to inspect the general valuation roll, which will be used for determining rates payable, and will be able to object to the Valuation Appeal Board. According to the city council, residents would have received notification of the value of their property before February next year.
Original Article: Businessday, June 2007
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