Rates

Jurisdiction
South Africa · Lesedi
Date
17 October 2018
Language
English
Type
Legislation
Download
Download PDF (217.5 KB)
Taxonomies
Lesedi
South Africa

Rates By-law, 2018

The Municipal Manager of Lesedi Local Municipality hereby publishes in terms of Section 13 of the Local Government Municipal Systems Act, 2000 (Act 32 of 2000) read with Section 162 of the Constitution of the Republic of South Africa, 1996 (Act 108 of 1996) the Lesedi Local Municipality Rates By-Law (reviewed).

Preamble

WHEREAS: Section 3 of the Local Government: Municipal Property Rates Act, 2004 (No 6 of 2004) (MPRA) determines that a municipality should adopt a rates policy in accordance to the determination of the Act.(1) Section 229 91 of the Constitution of the Republic of South Africa authorizes the municipality to impose rates on property and surcharges on fees for services provided by or on behalf of the municipality(2) In terms of Section 3 of the Local Government of the Municipal Property Rates Act no. 4 of 2004, a municipality must adopt a policy consistent with the Act on levying rates on rateable property in the municipality.

1. Definition

"exclusive use area" means part or parts of the common property for the exclusive use by the owner or owners of one or more owners referred to Sectional Titles Act;"land tenure right" means a land tenure right(Amended by s1 of Act 29 of2014) as defined in section 1 of the upgrading of Land Tenure Rights Act 1991 (Act 112 of 1991); (Added by s24 of Act 19 0f 2008)"multiple-use property" in relation to a property, means the use of a property for more than one purpose, subject to section 9;(Amended by s1 of Act 29 of 2014)"municipal council" or "council" means a municipal council referred to in section 18 of the Municipal Structures Act;"Municipal Finance management act" means the Local Government: Municipal Finance Management Act, 2003 (Act No. 56 of 2003);"Municipal Manager" means a person appointed in terms of section 82 of the Municipal Structures Act;"Municipal Structures Act" means the Local Government: Municipal Structures Act, 1998 (Act No. 117 of 1998)"municipal valuer or "valuer of a municipality" means a person designated as a municipal valuer in terms of section 33(1);"newly rateable property" means any rateable property on which property rates were not levied before the end of the financial year preceding the date on which this Act took effect, excluding-(a)a property which was incorrectly omitted from a valuation roll and for that reason was not rated before that date; and(b)a property identified by the Minister by notice in the Gazette where phasing-in of a rate is not justified;"occupier" in relation to a property, means a person in actual occupation of a property, whether or not that person has a right to occupy the property;"office bearer", in relation to places of public worship, means the primary person who officiates at services at that place of worship; (Added by s1 of Act 29 of 2014)"official residence", in relation to places of public worship, means-(a)a portion of the property used for residential purposes: or(b)one residential property, if the residential property is not located on the same property as the place of public worship, registered in the name of a religious community or registered in the name of a trust established for the sole benefit of a religious community and used as a place of residence for an office bearer;". (Added by s1 of Act 29 of 2014)"organ of state" means an organ of state as defined in section 239 of the Constitution;"owner" means:(a)in relation to a property referred to in paragraph (a) of the definition of ‘property’, a person in whose name ownership of the property is registered;(b)in relation to a right referred to in paragraph (b) of the definition of ‘property’, a person in whose name the right is registered;(bA)in relation to a time sharing interest contemplated in the Property Time-sharing Control Act, 1983(Act No. 75 of 1983), means the management association contemplated in the regulations made in terms of section 12 of the Property Time-sharing Control Act, 1983,and published in Government Notice R327 of 24 February 1984; (Added by s1 of Act 29 of 2014)(bB)in relation to a share block company, the share block company as defined in the Share Block Control Act, 1980 (Act No. 59 of 1980); (Added by s1 of Act 29 of 2014)(bC)in relation to buildings, other immovable structures and infrastructure referred to in section 17(1)(f), means the holder of the mining right or the mining permit; and(Added by s1 of Act 29 of 2014) in relation to a land tenure right referred to in paragraph(c)of the definition of ‘property’, a person in whose name the right is registered or to whom it was granted in terms of legislation; and d) in relation to public service infrastructure referred to in paragraph (d) of the definition of "property", the organ of state that owns or controls that public service infrastructure; provided that a person mentioned below may for the purpose of the Act be regarded by a municipality as the owner of a property in the mentioned circumstances:(i)a trustee in the case of a property registered in the name of the trustee in a trust, excluding state trust land;(ii)an executor or administrator, in the case of a property in a deceased estate;(iii)a trustee or liquidator, in the case of a property in an insolvent estate or an estate in liquidation;(iv)a judicial manager, in the case of a property in the estate of a legal person under judicial management;(v)a curator, in the case of a property in the estate of a person under curatorship;(vi)a person in whose name a usufruct or other personal servitude is registered, in the case of a property that is subject to a usufruct or other personal servitude;(vii)a lessee, in the case of a property that is registered in the name of a municipality and is leased by it to the lessee;(viiA)a lessee, in the case of property to which a land tenure right applies and which is leased by the holder of such right; or(Added by s1 of Act 29 of 2014)(viii)a buyer, in the case of a property that has been sold by the Municipality and of which possession has been given to the buyer pending registration of ownership in the name of the buyer; or an occupier of a property that is registered in the name of the Municipality."permitted use" in relation to a property, means the limited purposes for which the property may be used in terms of -(a)any restrictions imposed by -(i)a condition of title;(ii)a provision of a town planning or land use scheme; or(iii)any legislation applicable to any specific property or properties;(c)any alleviation of any such restrictions;"person" includes an organ of state;"place of public worship" means property used primarily for the purposes of congregation, excluding a structure that is primarily used for educational instruction in which secular or religious education is the primary instructive medium: Provided that the property is-(a)registered in the name of a religious community;(b)registered in the name of a trust established for the sole benefit of a religious community; or(c)subject to a land tenure right; (Added by s1 of Act 29 of 2014)"prescribed" means prescribe by regulation in terms of section 83;"property register" means a register of properties referred to in section 23;"publicly controlled" means owned by or otherwise under the control of an organ of state, including –(a)a public entity listed in the Public Finance Management Act, 1999 (Act No. 1 of 1999);(b)a municipality; or(c)a municipal entity as defined in the Municipal Systems Act;"public service infrastructure" means publicly controlled infrastructure of the following kinds:(a)Hospitals and clinics;(b)schools, pre-schools, early childhood development centres or further education and training colleges;(c)national and provincial libraries and archives;(d)police stations;(e)correctional facilities; or(f)courts of law,but excludes property contemplated in the definition of "public service infrastructure";(Added by s1 of Act 29 of(a)National, provincial or other public roads on which goods, services or labour move across a municipal boundary;(b)water or sewer pipes, ducts or other conduits, dams, water supply reservoirs, water treatment plants or water pumps forming part of a water or sewer scheme serving the public;(c)power stations, power substations or power lines forming part of an electricity scheme serving the public;(d)gas or liquid fuel plants or refineries or pipelines for gas or liquid fuels, forming part of a scheme for transporting such fuels;(e)railway lines forming part of a national railway system;(f)communication towers, masts, exchanges or lines forming part of a communications system serving the public;(g)runways or aprons and the air traffic control unit at national or provincial airports ,including the vacant land known as the obstacle free zone surrounding these, which must be vacant for the air navigation purposes; (Amended by s1 of Act 29 of 2014) Property Rates Policy 12(h)breakwaters, sea walls, channels, basins, quay walls, jetties, roads, railway or infrastructure used for the provision of water, lights, power, sewerage or similar services of ports, or navigational aids comprising lighthouses, radio navigational aids, buoys, beacons or any other device or system used to assist the safe and efficient navigation of vessels;(i)any other publicly controlled infrastructure as may be prescribed; or(j)a right registered against immovable property in connection with infrastructure mentioned in paragraphs (a) to (i);"public service purposes" in relation to the use of a property, means property owned and used by an organ of state as-(a)Hospitals and clinics;(b)schools, pre-schools, early childhood development centres or further education and training colleges;(c)national and provincial libraries and archives;(d)police stations;(e)correctional facilities; or(f)courts of law, but excludes property contemplated in the definition of "public service infrastructure";(Added by s1 of Act 29 of"ratio" in relation to section 19, means the relationship between the cent amount in the Rand applicable to residential properties and different categories of non-residential properties: Provided that the two relevant cent amounts in the Rand are inclusive of any relief measures that amount to rebates of a general application to all properties within a property category;(Added by s1 of Act 29 of 2014)"register" means to record in a register in terms of-(i)the Deeds Registries Act, 1937 (Act No. 47 of 1937); or(ii)the Mining Titles Registration Act, 1967 (Act No. 16 of 1967); and(b)includes any other formal act in terms of any other legislation to record-(i)a right to use land for or in connection with mining purposes; or(ii)a land tenure right;"residential property" means a property included in a valuation roll in terms of section 48 (2) in respect of which the primary use or permitted use is for residential purposes without derogating from section 9;(Amended by s1 of Act 29 of 2014)

2. Classification of categories of property

The categories of property specified above are further circumscribed as follows:
(h)Communal land as defined in the Communal Land Right Act Category should be ‘’land tenure right" a land tenure right (amended by s1 of Act 29 of 2014) as defined in section 1 of the Upgrading of Land Tenure Rights Act 1991 (Act 112 of 1991); (added by s24 of Act 19of 2008)

3. Categories of ownership for purposes of exemptions, rebates and reductions

3.1When granting in terms of subsection (1) exemptions, rebates or reductions in respect of owners of categories of properties, a municipality may determine such categories in accordance with section 8(2) and subsection (2A), (Added by s11 of Property Rates Policy 29 Act 29 of 2014) and when granting exemptions, rebates or reductions in respect of categories of owners of properties, such categories may include-
(a)Household owners who are registered as indigents in terms of the adopted policy of Council.
(b)Owners dependant on pension or a social grant for their livelihood.
(c)Disabled and medically unfit owners.
(d)Public benefit organisations and not-for-gain institutions;
(e)Land reform beneficiaries;
(f)Owners of agricultural or farm land who are bona fide farmers;
(g)Owners of residential properties with a market value lower than an amount determined by the Municipality;
(h)Specified development zones for commercial, industrial and residential development;
(i)Municipal owned property;
(j)State owned property;
(k)Owners of property situated within an area affected by a disaster within the meaning of the Disaster Management Act, No. 57 of 2002. Whilst some categories of property and categories of owners are granted relief with regard to the payment of rates, no relief shall be granted in respect of the payment for rates to any category of owner of property or to owners of properties on an individual basis, and any relief granted shall only be by way of an exemption, rebate or reduction, as provided for in this Policy.
3.2In addition to the categories of rateable property determined in terms of section 8(2), a municipality may, subject to any ratio determined in terms of section 19, for the purposes of granting exemptions, rebates and reductions, determine such categories based on-
(a)properties used for public service purposes; and
(b)properties to which the provisions of the National Heritage Resources Act, 1999 (Act No. 25 of 1999), apply, or an institution that has been declared to be subject to the Cultural Institutions Act, 1998 (Act No. 119 of 1998). (Added by s11 of Act 29 of 2014)

4. Liability for rates

Levying of rates on property in sectional title schemes
(a)Rates on property, which is subject to a sectional title scheme, including exclusive use areas, will be levied on the individual sectional title units as well as the right for further development and be rated at the tariff applicable to the development i.e. residential, industrial, business, commercial etc.
(b)A rate levied by the municipality on a sectional title unit is payable by the owner of the unit or the holder of a right contemplated in section 25 or 27 of the Sectional Titles Act. (Amended by s16 of Act 29 of 2014).
(c)A municipality may not recover the rate on a sectional title unit, or on a right contemplated in section 25 or 27 of the Sectional Titles Act registered against the sectional title unit, or any part of such rate, from the body corporate controlling a sectional title scheme, except when the body corporate is the owner of any specific sectional title unit, or the holder of such right. (Amended by s16 of Act 29 of 2014 Property Rates Policy 33).
(d)A body corporate controlling a sectional title scheme may not apportion and collect rates from the owners of the sectional title units in the scheme.
(e)This section must be read subject to section 92 of the Act.

5. Differential rates

As amended in the MPRA NO. 6 OF 2004.

6. Exemptions, rebates and reductions on rates

Rebates (and amendments of MPRA)
Gross monthly household income%
R0 - (4444)100
4445 – 634880
R6349 – 698260
R6983 -761840
R7619 – 825220

7. Rate increase

(1)The municipality will consider increasing rates annually during the budget process.
(2)All increases in property rates will be communicated to the local community in terms of the council’s policy on community participation.
(3)Promulgation of resolutions levying rates
(3.1)A rate is levied by a municipality by resolution passed by the municipal council with a supporting vote of a majority of its members.
(3.2)
(a)A resolution levying rates in a municipality must be annually promulgated within 60 days from the date of the resolution, by publishing the resolution in the Provincial Gazette.
(b)The resolution must-
(i)Contain the date on which the resolution levying rates was passed;
(ii)Differentiate between categories of properties; and
(iii)Reflect the cent amount in the Rand rate for each category of property. (Amended by s10 of Act 29 of 2014)

8. Frequency of valuation

A valuation roll-
(a)takes effect from the start of the financial year following completion of the public inspection period required by section 49; and
(b)remains valid for that financial year or for one or more subsequent financial years as the municipality may decide, but in total not for more than-
(i)four financial years in respect of a metropolitan municipality; and
(ii)five financial years in respect of a local municipality. (Amended by s19 of Act 29 of 2014)
(2) The MEC for local government in a province may extend the period for which a valuation roll remains valid[to five financial years, but only ]-
(a)in the case of-
(i)a metropolitan municipality, to five financial years; and
(ii)a local municipality, to seven financial years, (Amended by s19 of Act 29 of 2014) if the provincial executive has intervened in the municipality in terms of section 139 of the Constitution; or
(b)in the case of-
(i)a metropolitan municipality, to five financial years; and
(ii)a local municipality, to seven financial years, (Amended by s19 of Act 29 of 2014) on request by the municipality, in other exceptional circumstances which warrant such extension.
Adjustments or additions to valuation rolls
(1)Any adjustments or additions made to a valuation roll in terms of section 51(c), 52 (3) or 69 take effect on the effective date of the valuation roll.
(2)If an adjustment in the valuation of a property affects the amount due for rates payable on that property, the municipal manager must-
(a)calculate-
(i)the amount actually paid on the property since the effective date; and
(ii)the amount payable in terms of the adjustment on the property since the effective date; and
(b)either-
(i)recover from[, or repay to], the person liable for the payment of the rate the difference determined in terms of paragraph (a) [plus interest at a prescribed rate.] without adding interest on the amount due for rates; or
(ii)repay to the person who made the payment the difference determined in terms of paragraph (a) plus interest at the prescribed rate; (Amended by s22 of Act 29 of 2014
Rates on a property based on the valuation of that property in a supplementary valuation [roll] become payable with effect from -(Amended by s26 of Act 29 of 2014) -
(a)the first day of the month following the posting of the notice contemplated in subsection (5) [the effective date of the supplementary roll,] in the case of a property referred to in subsection (1) (a)[, (e)] or (f); (Amended by s26 of Act 29 of 2014)
(aA)the first day of the month following the posting of the notice contemplated in subsection (5) in the case of property referred to in subsection 1 (a), (e), (f) or (h):Provided that in the case of a decrease in value in respect of a property referred to in subsection 1(e), the rates become payable on the date the property was incorrectly valued or the clerical or typing error was made; (Added by s26 of Act 29 of 2014)
Whenever an occupational certificate is issued, an interim valuation should be conducted on the respective property.Effective dateThis Rates By-Law shall be effective from 1 July 2018.
▲ To the top

History of this document

17 October 2018 this version
01 July 2018
Commenced