VALUATION ROLLS
A GVR contains valuations of ALL properties in a municipality and is produced every three years. An SVR only contains a selection of properties and is produced at least once a year. The properties that are selected for valuation on an SVR have undergone changes which affect their valuation.
Properties are selected in terms of section 78 of the Local Government: Municipal Property Rates Act (Act 6 of 2004) and can include properties that:
- have been incorrectly recorded in the GVR as a result of a clerical or typing error;
- have been recently included into the municipality;
- have been subdivided or consolidated;
- have category changes;
- have undergone a substantial increase or decrease in market value;
- must be revalued for any other exceptional reason;
- were incorrectly omitted from the GVR;
- were valued substantially incorrectly in the last GVR.
The date of implementation of the new values will be indicated on the notices sent out to property owners. These dates will differ from property to property.
This is a date set by the municipality to which all values relate. The values must reflect the market value of the properties in accordance with the market conditions which applied at that date.
PROPERTY RATES
The Municipal Property Rates Act is national legislation which has been introduced in order to provide nationwide uniformity, simplicity and certainty as well as to take into account the historical imbalances and rates burden on the poor.
- To regulate the power of a municipality to impose rates on property
- To make provision for municipalities to implement a transparent and fair system of exemptions, reductions and rebates through their rating policy
- To make provision for fair and equitable valuation methods of properties
- To make provision for an objections and appeals process to the market valuations
- To ensure people are rated in a fair and equitable manner
Property will now be valued on the market valuation, in relation to the price that a willing buyer and willing seller agree on the individual units within a sectional title complex will now be rated and each unit will receive its own rates Bill. More flexibility in rating different categories of property
Property must be valued at market value, which is the amount the property would have realised if sold on the date of valuation in the open market by a willing seller to a willing buyer.
Municipalities need a reliable source of revenue to provide basic services and perform their functions. Revenue from property rates is used to fund services that benefit the community as a whole. These include: constructing and maintaining streets, roads, sidewalks, street lighting, and storm drainage facilities; building and operating clinics, parks, recreational facilities and cemeteries beaches, libraries and the administration of the municipality.
Rates are paid by all owners of property whether residential, commercial, sectional title unit owners and even the Government Institutions.
Property rates are calculated on the value of the property. The Property Rates Act requires that this value must be the “Market Value”. Rates are calculated by multiplying the market value of immovable property by a cent amount in the Rand which is determined from the budget.
CONTESTING MUNICIPAL VALUATIONS
When a municipality publishes a valuation roll, the roll will be open to the public to lodge formal objections. The City will then assess the merit of your objection and you will be notified in writing of the outcome. The corresponding rates account will be adjusted accordingly with the decrease or increase as per the outcome.
You are entitled to appeal against the objection decision if you believe you have good grounds to base your appeal. The appeal will be heard by an independent appeal board. Information on how to lodge an appeal will be included in the objection decision notice when it is posted and emailed to you.
The period for submitting an appeal opens on the day that the objection decision notice is posted to the property owner and/or objector. You will then have 30 working days to submit an appeal.
Section 52 of the Act states that an objection decision must be automatically submitted for a review by the Valuation Appeal Board (VAB) when the difference between the objection decision value and the original value objected against is greater than 10%.
Properties which are subject to a section 52 review are automatically selected to be submitted to the VAB for review, irrespective of whether there is an appeal form submitted by the owner/objector. The referral of the Section 52 review to the VAB does not require for a form to be completed by the owner/objector.
It is, however, recommended that owners/objectors who disagree with the objection decision should submit an appeal on the prescribed appeal application form to enable them an opportunity to personally address the VAB in respect of their valuation.
The period for submitting an appeal opens on the day that the objection decision notice is sent to the property owner and/or objector. You will then have 30 days to submit an appeal.
All appeals must be submitted to the Valuation Appeal Board (VAB), who must make a decision regarding the value of the property. A hearing will be scheduled where you will be allowed to present your appeal to the VAB.
Due to the current pandemic, all VAB hearings are being conducted remotely via Skype for Business until further notice. Owners and objectors who have submitted appeals will receive notification about the date and time of their remote VAB hearing.
The decision of the VAB is final whereupon both the City and the appellant are bound. The City has no authority to amend of revoke a decision taken by the VAB.
Should either the City or the appellant wish to dispute the decisions made by the VAB, the only legal remedy is to institute review proceedings in the High Court in terms of the Administrative Justice Act, 3 of 2000.