Rates & Property Valuations
Are your rates going up if there is a revaluation?
The total amount of rates collected each year is part of a budget process, which budget generally increases by around the annual inflation rate each year.
The amount that each property owner pays is determined by the value of his property in relation to the other properties in the municipal area.
If all properties showed the same increase from the old values to the new, then all would reflect a similar rates increase at around the rate of inflation.
What is the Municipal Property Rates Act?
The Municipal Property Rates Act is national legislation which empowers municipalities to raise rates based on property valuations.
What is the Purpose of the Municipal Property Rates Act?
To regulate the power of a municipality to impose rates on property.
To make provision for municipalities to implement a transparent and fair system of exemptions, reductions and rebates through their rating policy.
To make provision for fair and equitable valuation methods of properties.
To make provision for an objections and appeals process to the market valuations.
To ensure people are rated in a fair and equitable manner.
The property values are used to determine property rates (tax).
What are the main features of the Municipal Property Rates Act?
Property valuations will be based on their respective market valuations.
The individual units within a sectional title complex are rated separately and each unit will receive its own rates bill.
More flexibility in granting relief to the poor, medically boarded persons and pensioners.
More flexibility in rating different categories of property.
What should I do if I am unhappy with the valuation?
Should you feel that your property has been over or under valued, you may lodge an objection. In doing so, you must submit your value and provide motivation and market evidence to support such claimed value. Comparing your municipal valuation with your neighbours properties does not imply that your property valuation is wrong, and cannot be used as motivation for valuation. Sometimes, those neighbours may have lodged similar objections because their values were too low or high.
More information is available on the Durban.gov website.
http://www.durban.gov.za/Online_Tools/vroll/Pages/faq.aspx
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