The Municipal Property Rates Act allows for different property rating categories, which include "privately owned towns serviced by the owner".

"We are of the view that this category must be incorporated in the revised Draft Rates Policy to assist developers and end land owners of such estates who are essentially being taxed twice on the same property. This should allow a different rating and rebate where all services and infrastructure has been independently installed and thereafter maintained by the developers. These include roads, sewage plants, storm water drainage, water and refuse removal," says Tsakane Shilubane, legal services manager for South African Property Owner's Association (SAPOA).

Under the current City of Johannesburg (COJ) Draft Rates Policy, these developments are subject to full rates, despite non-provision of maintenance and services.

"We're calling on the COJ to revise and improve its Draft Rates Policy in order to better serve the rights and interests of property owners in the area. The COJ's apparent limited capacity to process requests timeously has resulted in long delays, particularly with the issuing of clearance certificates. This affects all stakeholders in the property buying and selling cycle and these procedures therefore need urgent revision," says SAPOA CEO Neil Gopal.

SAPOA's 21-page feedback document to Council cites the challenge of "open market value" for properties, where council's "mass valuation approach" has compromised property owners by disproportionate "actual values" attributed to many properties. In some cases valuations have increased by between 1000% to 5000%. SAPOA believes that a market value approach should rather be applied.

"SAPOA also objects to the fact that property owners who have been issued over-inflated rates have to pay these rates until such time that the objection process has been finalised. We propose that where a new valuation is substantially higher than the previous evaluation, the owner be exempt from paying the new rates until such time that the objection is resolved," Gopal said.

SAPOA is also concerned with the Council's delays in handling objections and appeals regarding valuations. "Recent reports suggest that up to 40% of objections were still outstanding, and with Council's 20 April 2009 deadline, it's unlikely this will be completed," says Shilubane.

The issue of multiple purpose usage in sectional title schemes is another amendment that SAPOA welcomes, however Gopal says that owners of sectional Title dwelling units are concerned that commercial property rates, which are higher than residential rates, are being applied, where a mix of commercial and residential accommodation is catered for. "SAPOA believes that in order to be fair, the actual usage should be the criteria to determine the appropriate rate for a property with multiple usage," he adds.

Although SAPOA welcomes the proposed changes whereby individual owners of Sectional Title units, or the responsible Managing Agent, should apply to the Council for the residential property rates tariff for those sections used solely for residential purposes, there are some concerns. "SAPOA believes that it is unfair that the re-instatement of the residential rate should only be effective from the date that Council is satisfied the property is used for residential purposes only."

As part of its mandate to look after the property rights of its members, SAPOA holds regular meetings with the COJ and has also proposed a meeting with the City to discuss the Draft Rates Policy document and to request that the COJ extend the deadline for comment on business tariffs.

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