Implementation of the Municipal Property Rates Act

Property Valuation
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 from its effective date.

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 rates 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.

In terms of Section 31 of the Local Government: Municipal Property Rates Act, 2004 (Act No. 6 of 2004), hereinafter referred to as the "MPRA", the Msunduzi Municipality wishes to advise that a General Valuation Roll is being prepared in terms of the "MPRA", with an effective date  : 1 July 2009, and a Date of Valuation : 2 July 2008.

Additionally, the Msunduzi Municipality wishes to confirm that; it has rescinded its previous decision to commence with the levying of rates based on a new General Valuation Roll prepared in terms of the MPRA and which would have come into effect from the 1 July 2008.  Therefore rates being levied for the 2008/2009 financial year are still being levied in using the "old" General Valuation Roll prepared in terms of the Local Authorities Ordinance.

As prescribed in the MPRA, the public will be afforded an opportunity to inspect and object to specific individual property listed in the General Valuation Roll currently being prepared. The General Valuation Roll will be made available for public inspection and objection at certain Municipal offices and on the municipal website: www.msunduzi.gov.za. It is anticipated that that the new Valuation Roll will be available for inspection during February 2009. The public are requested to watch the press for details.

Property Rates
Properties will be revalued and effective 1 July 2009, the rates payable by property owners will be based on the updated market value of their property.

Generally, rates increase every year by the rate of inflation. The new system will not necessarily mean that rates will increase, nor does it necessarily mean the municipality will be collecting a larger sum of money. The amount each property owner pays is determined by the market value of his/her property.

The rates payable by of individual property owners will only be known once the entire valuation exercise is complete, and the rates tariffs have been determined during the budget process, which will take place in early 2009. The revenue received from property rates benefits all ratepayers, and is used to fund essential services, infrastructure costs, health and social needs of communities.

Previously, Sectional Title complexes were rated as a whole and the Body Corporate or managing Agent would determine each individual's contribution. In contrast, an important provision of the new Act requires that each individual sectional title unit be separately valued and rated. Again, the rates payable will be based on the market value, of the individual sectional title unit, as at the Date of Valuation.

It is essential that communities proactively and constructively engage with the municipality on valuation and rating issues. The public will be invited to comment on the Draft Rates Policy which will be published later this year (2008). Please watch the press for details.

For enquiries please call: 033 3922296

RF Haswell (JP)
Municipal Manager

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