Dismissing recent media reports claiming property rates – linked to a new valuation roll – would soar in 2008, City spokesperson, Virgil James, says the City still has to implement a rates policy in keeping with the Local Government Municipal Property Rates Act that was approved by parliament in 2004.
Currently rates are based on land value only. The Act now makes provision for rates to be charged on the improved municipal value of the property. Changes in the rates "will only be known once the City has implemented a rates policy", James says.
"Changes in rates can only be implemented once certain processes have been completed. The public has to participate in the process and this may take time before the property rates act can be implemented," says James.
According to Irvine Florence of the City's department of finance: "The new legislation requires that assessment rates are to be levied based on the market value of land plus improvements.
"This also means the present rate-in-the-rand of 11,9 percent is going to reduce – but we cannot tell by how much it is going to reduce.
"All this will be determined after the rates policy has been approved and implemented," Florence says.
Some residents may see their property rates increase, while others may pay less, depending on the value of improvements. "The assessment rates won't be identical," says Florence.
In terms of the new legislation, owners of sectional title apartments - instead of body corporates – will pay property rates directly to the City.
According to James, "This means a bigger tax base for the City and translates into better service delivery."
The City derives 24,8 percent of its revenue from electricity, 20,7 percent from water, 20,7 percent from property rates, 20 percent from operating and capital grants, 3 percent from refuse removal and 1,4 percent from fines and licences.
Article courtesy of City of Johannesburg website (www.joburg.org.za).
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