Overview of the Municipal Property Rates Act and the Implemenation within Msunduzi Municipality

The Municipal Property Rates Act is new property rating legislation that regulates the powers of a municipality to value and rate properties located within its demarcated municipal boundary.  The general basis of the valuations of a property is market value.

The Msunduzi Municipality resolved to implement the Municipal Property Rates Act (MPRA) on 1 July 2008.  This means that the city was required to prepare a new General Valuation Roll reflecting the Open Market Value of all the properties within our municipality. A mass valuation service provider with an international track record, CB Richard Ellis, was appointed to prepare the General Valuation Roll for the municipality. Data collectors, employed by CB Richard Ellis, (in consultation with ward councillors) have collected valuation data in order to establish the market value of all properties within the municipality as at 1 July 2007. This fixed date of valuation ensures that all properties are valued equitably.

We take great pride in announcing that there has been significant co-operation by rate payers with the data collection process during the past year. Rate payers within the Msunduzi Municipality have allowed the data collectors to achieve an outstanding 80% access to properties. In relation to the national norm of only 28-32% this is a great achievement. The remaining 20% of the properties were valued by the use of alternate valuation methods, accepted by prevailing legislation. The MPRA  makes provision for Computer Assisted Mass Appraisal methods for the valuation of properties. Our valuers have adopted this approach using aerial photocopy and digitizing the extent of properties and their improvements.

We would like to thank each and every rate payer for contributing towards securing an MPRA compliant valuation roll for our city. The Municipality will also like to extend their  appreciation to sectional title scheme owners. The MPRA requires that each unit within a sectional title scheme is valued and individually rated. The Body Corporates responded to our call for information for the unit holders making the municipality’s task a lot easier.

The certified General Valuation Roll will be available for public inspection from February 2008 (Watch the press for more details). This mandatory inspection process will give the public an opportunity to object to any information that may have been included or omitted from the General Valuation Roll.

FREQUENTLY ASKED QUESTIONS

What is Market Value?

Market value can be defined as the amount the property would have realized if sold on the date of valuation in the open market by a willing seller to a willing buyer.

What is the fixed date of valuation?

This is the date which a municipality will fix and to which all valuations will be aligned for the period of the General Valuation Roll

What is the effective date of the General Valuation Roll?

This is the date that can also be referred to as the date of implementation.  This is the date upon which the General Valuation Roll becomes effective.  The Msunduzi Municipality will commence rating on the newly prepared values on 1 July 2008.

We have invested heavily in our public participation programme to keep ratepayers informed on the MPRA processes. We believe that the successful data collection programme has been as a result of the exposure and orientation to the new property rating legislation which we have made available to the public.  The municipality has invited submissions and comments through various platforms such as the Rate Payers Associations, Area Based Management offices, account inserts and the various press and radio coverage.

This article is the first of series of articles to provide more information on the Municipal Property Rates Act, please watch the press for the following topics relating to the MPRA

• Community Participation


• The valuation of Sectional Title Scheme properties


• The valuation of Agricultural Properties


• The rates policy, including details of relief extended to certain categories of owners and categories of properties


• Inspection of the General Valuation Roll


• Other relevant topics

Please may we invite you to send through your requests for further topics which you may require additional information on regarding the implementation of the MPRA. Submissions can be mailed to Debbie.Prince@msunduzi.gov.za or delivered to 5^th floor Prof. Nyembezi Centre for attention Manager Real Estate and Valuations. We undertake to forward your requests to our Project Team and may publish these as additional articles.

MUNICIPAL MANAGER

RF Haswell (JP)