MUNICIPAL RATES - ARE WE AT RISK - DON'T BE - CHECK YOUR VALUE

MUNICIPAL RATES - ARE WE AT RISK - DON'T BE - CHECK YOUR VALUE

Category FINANCE

It is of critical importance that property owners in Pretoria (Tshwane) take note of the fact that notice has been given by the City of Tshwane Municipality in terms of Section 49(1)(a)(i) of the Local Government: Municipal Property Rates Act, 2004, (Act No. 6 of 2004), as amended, hereinafter referred to as the "Act", that the Valuation Roll for the period 1 July 2020 to 30 June 2024, is open for public inspection at the offices of the Municipality from 26 February 2020 to 5 May 2020.

What is the purpose of the valuation roll?

The purpose of the valuation roll is to assess municipal valuations of all immovable property (asset) types, including residential, commercial, industrial and specialized properties.

These municipal valuation amounts will be used as the basis to calculate property rates on your property which will be charged for the next 4 years.

What does this mean for you as a property owner?

This is an opportunity for you as a property owner to ensure that your property valuation is calculated correctly as this valuation, together with the applicable tariff, will determine your property tax. It is absolutely critical that you make use of this opportunity.

We are all aware that most municipalities in South Africa is in dire striates financially mainly because of the utter lack of competence in financial management relevant to these departments and largely because of the governments inability or unwillingness to deal with aspects such as corruption, nepotism and the like.

The fact that Tshwane has been placed under administration on 5 March 2020 (See article: https://www.dailymaverick.co.za/article/2020-03-05-tshwane-placed-under-administration-elections-within-90-days/ ) also has not been a positive attribute to the process to follow.

If your property is over-valued by the municipality which is very likely given the fact that there are thousands of properties to be assessed, you'd be liable to pay the inflated property tax that will be allocated to your property for the next 4 years thus effective from 1 July 2020 until 30 June 2024.

Spot checks on some assets in just our portfolio has indicated that Tshwane is of the opinion that some assets are worth 50% more than their current value despite the fact that the South African economy is in a general decline.

An inflated or over-stated value of your property's value has a prominent impact on your monthly cash flow.

How do I know what the new value of my asset is according to Tshwane?

Visit Tshwane's website at http://www.tshwane.gov.za/sites/residents/Services/Pages/PropertyValuations.aspx and click on the tab for "General Valuations Roll".

You'd be expected to enter your stand number of the legal description of your asset and to click on the search button.

The result would be the newly assessed value of your property according to the City of Tshwane.

Upon entering the legal description of your asset and clicking on the "search"tab, your newly assessed value will be displayed.

How do I know what the currently assessed value of my property is?

Each property owner will receive a monthly City of Tshwane bill either by means of Print or by means of electronic distribution such as email. Some residents also opt to merely log into their account at https://www.e-tshwane.co.za/eTshwane/ to retrieve their liability thus avoiding the unnecessary print and "saving a few trees" whilst doing so 😊

Refer to your municipal bill which will now depict the new value as well as the previous assessment.

What must I do if the value outlined by Tshwane is not accurate?

If you are uncertain about the municipal value of your property or would like to dispute the value indicated, you can visit the link hereto: http://www.tshwane.gov.za/sites/residents/Services/Pages/PropertyValuations.aspx to download the prescribed form relevant to your asset.

The public notice issued by Tshwane is an invitation in terms of Section 49(1)(a)(ii) of the Act to lodge an objection in respect of any matter relevant to the roll.

Such objection lodged must be in relation to a specific individual property and not against the roll - the objection forms for all different property types available at the link supplied.

It is probable that you'd have to employ the services of an independent and professional property valuer (not a real estate agent) to determine the accurate municipal value of your property.

Such a valuer will compile a valuation report which must be included in your objection to substantiate the amended municipal valuation.

Closing date for objections is 12:00 on Tuesday, 5 May 2020 - no late objections will be considered by the Municipal Valuer or the Valuations Appeal Board.

It is also critical to note that the Municipality will not give consideration to any objection unless it is brought about on the prescribed forms as available above.

Conclusion

In todays time of excessive taxes and spiraling costs, it is important to take note of opportunities to render input in order to potentially save.

By scrutinizing the value of your property portfolio in accordance with the currently available valuation roll, you could ensure that every rand of hard earned earnings is accounted for.

Cognizance hereof would ensure that you are not subjected to excessive rates payments for the next 4 years.

Whilst we're in motion of scrutinizing our asset portfolio, spare some thought also to rebates offered to pensioners and lower income groups.

Take note of rebates offered to specific lower income groups;

Pensioners also qualify for exemptions and rebates relevant to their age groups and income levels. Refer to the Property Rates Policy issued 1 July 2019.

Author: Johann Cronje - Principal