Hikes due to incorrect 2013 valuations – mayor
JOBURG mayor Herman Mashaba has defended the controversial property valuations as a necessary process.
He said the municipal valuation roll was, among others, the result of incorrect and undervalued properties in the 2013 roll.
He was responding to a huge outcry from property owners about some of their properties facing increases of up to 1 000%.
The 2013 roll had proved to be flawed, he said. At the time, many objections were received, but thousands of cases of undervaluations were not addressed.
“The correction of these valuations in the 2018 roll is a necessity and has led to some reports of massive increases. Where errors have been made, I will see to it that the city is responsive and caring in our approach to correct the problem,” he said.
There had been a five-year gap between the two valuations.
“Unfortunately, the increases have raised a great deal of alarm, which I deem necessary to address. The narrative seems to suggest that the city, through the new roll, is forcing residents out of their hard-earned money to address a revenue crunch. Nothing could be further from the truth. This process is run independently from the city, and cannot be influenced by the city,” he added.
The implementation of the general valuation roll is a legislated process that takes place every four years, with prescribed steps which need to be followed. In the case of the City of Joburg, a one-year extension was granted. “Joburg is a city of choice for many. It is a major economic hub on the continent, which offers many who flock here the potential for a better life. The knock-on effect is the high demand for property and, in a space of high demand and limited supply, prices are likely to increase over a fiveyear period,” the mayor noted.
Property sales are taken into account in areas where values have declined, increased or remained stagnant due to the state of the property market and the economy.
The new roll showed the average increase for 879 000 properties was 30% over the five-year period. The property values were as follows:
4.61% of properties decreased. 10.44% of properties increased between 0% and 20%.
40.71% of properties increased between 21% and 40%.
30.65% of properties increased between 41% and 60%.
7.99% of properties increased between 61% and 80%.
2.23% of properties increased between 81% and 100%.
3.38% of properties increased by more than 100%.
Improvements in the new roll include the appointment of additional valuers and a service provider to ensure the quality of the new roll.
Residents have 45 days to lodge objections, 15 days more than the legal requirement of 30 days.
“It is our commitment to provide the best possible public services, facilities such as clinics and libraries, grow the economy through improved infrastructure, improve access to housing, and take care of the most vulnerable members of our society.
“To do this, the city raises funds by levying rates against property values. Every effort has been made to derive additional revenue from efficiencies, rather than increasing its rates and service charges,” said Mashaba.