Municipal Property Rates Act
The new Municipal Property Rates Act No. 6 of 2004 came into effect on 2 July 2005. This Act regulates the power of a municipality to value and rate immovable properties within its boundaries and must be implemented by all municipalities within four years.
The Act provides for the revaluation of all properties within the municipal area. Revaluations should happen at least once every four years and the law states that the rate levied must be based on the market value of the property i.e. the amount the property would have realised if sold on the Date of Valuation in the open market by a willing seller to a willing buyer.
While providing uniformity and simplicity, the Municipal Property Rates Act aims to undo historical imbalances and relieve the rates burden on the poor.