The Citizen (Gauteng)

Joburg urged to get rates in order

VALUATIONS: PAY UP TO AVOID SERVICES CUT

- Ingé Lamprecht

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

 ?? Picture: Bloomberg ?? BATTLEGROU­ND. There seems to be an erroneous interpreta­tion of the city’s rates policy which affects residentia­l sectional title units on land zoned for business purposes.
Picture: Bloomberg BATTLEGROU­ND. There seems to be an erroneous interpreta­tion of the city’s rates policy which affects residentia­l sectional title units on land zoned for business purposes.

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