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Top valuer advises softly softly approach on Rates Bill   Article Date :21 Jun 2002 Report from outgoing South African Institute of Valuers president Phillip de Sylva The government has been lauded for its approach to the Local Government Property Rates Bill 2000, which was gazetted on 4 August 2000, but has still not been enacted. The praise comes from outgoing South African Institute of Valuers (SAIV) president Phillip de Sylva, in his address to members at the Institute's June 6 AGM in Port Elizabeth. De Sylva says, "the legislation will probably have a dramatic effect on municipal treasury's and the property market in general when it come to pass.... it may also have a profound and possibly crippling impact on the agricultural and mining sectors if not handled sensibly." "For these and other reasons, the government should be commended for not rushing the legislation," says De Sylva, who forms part of the professional consortium assisting the government in analysing the impact of the proposed legislation will have on municipalities. He believed a thorough and responsible approach was being given the review of the legislation and looked forward to the publication of the next bill during the early part of 2003. However, he expressed personal concerns about the profession's capacity to undertake market valuations of the entire country as well as the ability of municipalities to cover the costs of valuations. "I have even raised questions about valuation methodology and suggested that municipalities be given the additional option of Annual Value. He reiterated his concerns made public last year: "that we must not under-estimate the rating valuation challenge to be faced once this legislation becomes a reality. There is a dire shortage of municipal valuers in this country and we are in effect also being presented with a golden opportunity to promote our profession. Turning to capital gains tax, De Sylva believed the anticipated need for valuers services had yet to engulf the profession as many property owners were still procrastinating in obtaining valuations. He predicted there would be an unprecedented demand for their services in 2003 as the 30 September deadline loomed. He noted that the Institute of Estate Agents (IEASA) had made an application to the SAIV for the creation of a special category to be created for their registration to undertake capital gains tax valuations. "This issue has yet to be resolved and is being closely monitored by the SAIV." Current SAIV membership was 1 314, which was down slightly on the previous year's 1 334 members. Article: 18 June 2002 RodneyHayter The Property Professional On-line Edition 46 email: hayter@icon.co.za CLICK HERE TO RETURN TO THE MAIN NEWS PAGE