Info on Property Rates Bill Local Government
The above act was promulgated in August 2000. Various organizations including the Institute of Estate Agents South Africa submitted comments iro this act to the Minister for Provincial & Local Government, Mr. F.S. Mufumadi. As a result of these submissions, the particular portfolio committee headed by Mr. Yunnis Carrim, has succeeded after 2 years of debate to finally submit the amended Bill to Parliament where it was vigorously debated on 19 February 2004 by the various political parties and passed by Parliament. In summarizing this Bill, the following has reference to us property owners;- * The basis for rating will be the market value of our property i.e. land and improvements at a uniform rate. * Places of worship will be excluded, * Welfare organizations, independent schools and conservation bodies will not be excluded. * Owners of sectional title units will have to pay rates directly to their municipalities, as body corporates will not be responsible anymore. I endorse the introduction of a single system of valuation based on the principles of market value, but I have some concerns about the scope of the project and the limited number of qualified valuers available to undertake the huge task of inspecting each property i.e. houses, flats, simplexes, duplexes vacant pieces of land and then completing a thorough valuation. I also have concerns about the punitive effect that the valuation of improvements will have on the rates payable by property owners in general. Improving and maintaining a property will be rewarded with a penalty. There will be no correlation between services received from the municipality and the rates charged. This will be a disincentive to property investment and property ownership and property maintenance, particularly in the rental market. Should you want more information iro this rates bill which will be introduced soon by local government please feel free to contact Arnold Nel at 082 901 5549.
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