Joburg urged to get rates in order
VALUATIONS: PAY UP TO AVOID SERVICES CUT
Owners whose properties were incorrectly classified are struggling to have the errors rectified.
Erroneous interpretation of the city’s rates policy.
Owners of sectional title residential properties, that were incorrectly classified as businesses during the City of Joburg’s recent valuation process, may face an uphill battle to get this corrected and have little choice but to pay their outstanding bills to avoid having services cut.
The problem seems to be due to an erroneous interpretation of the city’s rates policy and affects residential sectional title units on land zoned for business purposes.
The city’s Sihle More notes the highest permissible zoning determines which category is applied. Where property is used for residential purposes, but zoned for other purposes, the owner may apply that residential rates be levied.
Yet the Municipal Property Rates Act defines residential property as “a property included in a valuation roll … in respect of which the primary use or permitted use is for residential purposes …”
And the city’s 2018-19 rates policy states: “All rateable property will be classified in a category and … rated based on the category of the property from the valuation roll which is based on the primary permitted use of the property.”
While owners could object against the new valuation roll before its July implementation, owners (like me) who didn’t realise their property had been categorised as a business, may have been shocked by their July bill.
The valuation of my small residential sectional title unit rose roughly 18%, but because it was recategorised as a sectional title business, the rates bill jumped from R406 to R1 296. Despite calling the call centre in late July and applying for residential rates – and a month later applying for a high density residential rebate – I received a R3 972 bill on October 4. This despite paying total rates of R1 406 between July and September.
On October 4, the city notified me that unless I pay the outstanding amount immediately, my services would be cut off and legal action instituted.
Ben Espach of Rates Watch says the city may cut off a resident’s services even where an appropriate amount has been paid. Where owners have objected, and unless in arrears, their accounts have been flagged and they may continue to pay an amount equal to their previous rates bill, and the city won’t threaten legal action or cut off services.
But this is not the case for those who found incorrect categorisation after the deadline.
One could allow the legal process to run its course, but services will likely still be cut off before a court date is arranged, Espach adds. In these instances, requesting that residential rates be applied is probably an owner’s best bet, but this may still be a slow process and only provide a temporary solution as the incorrect categorisation will remain a problem with the valuation process.
Using an external rates specialist to remedy the classification can cost anything from R1 700 to R5 200 and take months to complete, without guaranteed success.
Some may have been shocked by their July bill