Local Government: Municipal Property Rates Act

Link to law: http://www.gov.za/documents/local-government-municipal-property-rates-act-0
Published: 2004-05-17

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Local Government: Municipal Property Rates Act [No. 6 of 2004]


Government Gazette
REPUBLIC OF SOUTH AFRICA

Vol. 467 Cape Town 17 May 2004 No. 26357
THE PRESIDENCY No. 610 17 May 2004
It is hereby notified that the President has assented to the following Act, which is hereby published for general information:–
No. 6 of 2004: Local Government: Municipal Property Rates Act, 2004.

2 No. 26351 GOVERNMENT GAZETTE, 17 MAY 2.004 ~ ~~~
Act No. 6,2004 LOCAL GOVERNMENT MUNICIPAL PROPERTY RATES ACT, 2004
(English text signed by the President.) (Assented to 11 May 2004.)
ACT To regulate the power of a municipality to impose rates on property; to exclude certain properties from rating in the national interest; to make provision for municipalities to implement a transparent and fair system of exemptions, reductions and rebates through their rating policies; to make provision for fair and equitable vaiuation.methods of properties; to make provision for an objections and
. , appeals process;-to amend the Local Government: Municipal Systems Act, 2000, so as to make further provision for the serving of documents by municipalities; to amend or epeal certain legislation; and to provide for matters connected therewith.
. .
PREAMBLE
WHEREAS the Constitution entitles municipalities to impose rates on property in their areas, subject to regulation in terms of national legislation;
AND WHEREAS the Constitution enjoins local government to be developmental in nature, in addressing the service delivery priorities of our country and promoting the economic and financial viability of our municipalities;
AND WHEREAS there is a need to provide local government wi h access to a sufficient and buoyant source of revenue necessary to fulfill its developmental responsibilities;
AND WHEREAS income derived from property rates i a critical source of revenue for municipalities to achieve their constitutional objectives, especially in areas that have been neglected in the past due to racially discriminatory laws;
AND WHEREAS it is essential that municipalities exercise their power to impose rates within a statutory framework that not only enhances certainty, uniformity and simplicity across the nation, but also takes into account historical imbalances and the rates burden on the poor;
AND WHEREAS the Constitution confers on Parliament the power to regulate the exercise by municipalities of their fiscal powers;
B E IT THEREFORE ENACTED by the Parliament of the Republic of South Africa, as follows:- ARRANGEMENT OF ACT
Section
CHAPTER 1
INTEWRETATION
5
1. Definitions
4 No. 26357 GOVERNMENT GAZETTE, 17 MAY 2004
LOCAL GOVERNMENT:
2.
3. 4. 5. 6.
7 . x. 9. 10. 11. 12. 13. 14. 15.
16. 17. 18. 19. 20. 21.
22.
23.
24. 25. 26. 27. 28. 29.
MUNICIPAL PROPERTY RATES ACT, 2004
CHAPTER 2
RATING
Power to levy rates
Part 1: Rates policy
Adoption and contents of rates policy Community participation Annual review of rates policy By-laws to give effect to rates policy
Part 2: Levying of rates
Rates to be levied on all rateable property Differential rates Properties used for multiple purposes Levying of rates on property in sectional title schemes Amount due for rates Period for which rates may be levied Commencement of rates Promulgation of resolutions levying rates Exemptions, reductions and rebates
Part 3: Limitations on levying of rates
Constitutionally impermissible rates Other impermissible rates Exemption of municipalities from provisions of section 17 Impermissible differentiation Limits on annual increases of rates Compulsory phasing-in of certain rates
Part 4: Additional rates
Special rating areas
Part 5: Municipal register of properties
Register of properties
CHAPTER 3
LIABILITY FOR RATES
Property rates payable by owners Payment of rates on property in sectional title schemes Method and time of payment Accounts to be furnished Recovery of rates in arrears from tenants and occupiers Recovery of rates from agents
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10
15
20
25
30
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6 No. 26357 GOVERNMENT GAZElTE, 17 MAY 2004
Act No. 6,2004 LOCAL GOVERNMENT MUNICIPAL PROPERTY RATES ACT, 2004
30. 31. 32.
33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44.
45. 46. 47.
48. 49. 50. 51. 52. 53. 54. 55.
56. 57. 58. 59. 60. 61. 62. 63. 64.
CHAPTER 4
GENERAL VALUATION OF RATEABLE PROPERTY
Part 1: General
General valuation and preparation of valuation rolls Date of valuation Commencement and period of validity of valuation rolls
Part 2: Municipal valuers
Designation of municipal valuers Functions of municipal valuers Assistant municipal valuers Data-collectors Delegations by municipal valuers Municipal partnerships Qualifications of municipal valuers Prescribed declaration Inspection of property Access to information Conduct of valuers Protection of information
CHAPTER 5
VALUATION CRITERIA
Valuation General basis of valuation Valuation of property in sectional title schemes
CHAPTER 6
VALUATION ROLLS
Contents of valuation rolls Public notice of valuation rolls Inspection of, and objections to, valuation rolls Processing of objections Compulsory review of decisions of municipal valuer Notification of outcome of objections and furnishing of reasons Right of appeal Adjustments or additions to valuation rolls
CHAPTER 7
VALUATION APPEAL BOARDS
Establishment of valuation appeal boards Functions Composition Disqualifications Term of office Conditions of appointment Conduct of members Termination of membership Alternates
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15
20
25
30
3 5
40
45
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8 No. 26357 GOVERNMENT GAZETTE, 17 MAY 2004
Act No. 6;2004 LOCAL GOVERNMENT: MUNICIPAL PROPERTY RATES ACT, 2004
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65. 66. 67. 68. 69. 70. 71. 72. 73. 74. 75. 76.
77. 78. 79.
80. 81. 82. 83. 84. 85. 86. 87. 88. 89.
90. 91. 92.
93. 94. 95. 96.
Meetings Administrative assistance Procedures Quorums and decisions Decisions affecting valuation rolls Orders as to costs Committees of appeal boards Inspection of property Access to information Protection of information Powers of appeal boards Proceedings by, or against, appeal boards
CHAPTER 8
UPDATING OF VALUATION ROLLS
General Supplementary valuations Amendment of valuation rolls
5
10
15
CHAPTER 9
MISCELLANEOUS MATTERS
20 Condonation of non-compliance with time periods Provincial monitoring National monitoring and reporting Regulations Consultative processes before promulgation of regulations Copyright of valuation rolls and other data 25 Offences Application of Act when in conflict with other laws Transitional arrangement: Valuation and rating under prior legislation Transitional arrangement: Use of existing valuation rolls and supplementary valuation rolls 30 Transitional arrangement: Existing rates policy Transitional arrangement: Application of section 21 Transitional arrangement: Liability of bodies corporate of sectional title schemes Transitional ar gement: Special rating areas 35 Amendment of section 115 of Act 32 of 2000 Amendment and repeal of legislation Short title and commencement
SCHEDULE
Part 1: Laws of the former Province of the Cape of Good Hope Part 2: Laws of the former Province of Natal Part 3: Laws of the former Province of the Orange Free State Part 4: Laws of the former Province of the Transvaal Part 5: Other laws
CHAPTER 1
INTERPRETATION
Definitions
1. (1) In this Act, unless the context indicates otherwise- “agent”, in relation to the owner of a property, means a person appointed by the owner of the property- 50
40
45
10 No. 26357 GOVERNMENT GAZETTE, 17 MAY 2004
Act No. 6,2004 ’ LOCAL GOVERNMENT: MUNICIPAL PROPERTY RATES ACT, 2004
(a) to receive rental or other payments in respect of the property on behalf of the
(b) to make payments in respect of the property on behalf of the owner; “agricultural purpose”. in relation to the use of a property, excludes the use (of a property for the purpose of eco-tourism or for the trading in or hunting of game; 5 “annually” means once every financial year; “appeal board”means a valuation appeal board established in terms of section 56; “assistant municipal valuer” means a person designated as an assistant municipal valuer in terms of section 35(1) or (2); “category” - 10 (a) in relation to property, means a category of properties determined in terms of
(b) in relation to owners of properties, means a category of owners determined in
“data-collector” means a person designated as a data-collector in terms of section 15 36; “date of valuation” means the date determined by a municipality in terms of section 3 1 (1); “district management area” means a part of a district municipality which in terms of section 6 of the Municipal Structures Act has no local municipality and is 20 governed by that municipality alone; “district municipality” means a municipality that has municipal executive ,and legislative authority in an area that includes more than one municipality, and which is described in section 155(1) of the Constitution as a category C municipality; “effective date”- 25 (a) in relation to a valuation roll, means the date on which the valuation roll takes
(b) in relation to a supplementary valuation roll, means the date on which a
“exclusion”, in relation to a municipality’s rating power, means a restriction of 30 that power as provided for in section 17; “exemption”, in relation to the payment of a rate, means an exemption granted by a municipality in terms of section 15;
owner; or
section 8; and
terms of section 15(2);
effect in terms of section 32(1); or
supplementary valuation roll takes effect in terms of section 78(2)(b);
“financial year” means the period starting from 1 July in a year to 30 June the next yeir; 35 “Income Tax Act” means the Income Tax Act, 1962 (Act No. 58 of 1962); “land reform beneficiary”, in relation to a property, meins a person who- (a) acquired the property through-
(i) the Provision of Land and Assistance Act, 1993 (Act No. 126 of 1993);
(ii) the Restitution of Land Rights Act,, 1994 (Act NO. 22 of 1994);
(Act No. 28 of 1996); or
legislation as may pursuant to section 25(6) and (7) of the Constitution be 45 enacted after this Act has taken effect;
or 40
(b) holds the property subject to the Communal Property Associations Act, 1996
(c) holds or acquires the property in terms of such other land tenure reform
“land tenure right” means an old order right or a new order right as defined in section 1 of the Communal Land Rights Act, 2004; “local community”, in relation to a municipality- (a ) means that body of persons comprising- 50
(i) the residents of the municipality; (ii) the ratepayers of the municipality;
12 No. 26357 GOVERNMENT GAZETTE, 17 MAY 2004
Act No. 6, 2004 LOCAL GOVERNMENT MUNICIPAL PROPERTY RATES ACT, 2004
(iii) any civic organisations and non-governmental, private sector or labour organisations or bodies which are involved in local affairs within Ithe municipality; and
(iv) visitors and other people residing outside the municipality who, because of their presence in the municipality, make use of services or facilities 5 provided by the municipality; and
(b) includes, more specifically, the poor and other disadvantaged sections of such
“local municipality” means a municipality that shares municipal executive and legislative authority in its area with a district municipality within whose area it 10 falls, and which is described in section 155(1) of the Constitution as a category B municipality; “market value”, in relation to a property, means the value of the property determined in accordance with section 46; “MEC for local government” means the member of the Executive Council of a 15 province who is responsible for local government in that province; “metropolitan municipality” means a municipality that has exclusive executive and legislative authority in its area, and which is described in section 155 (1) of the Constitution as a category A municipality; “Minister” means the Cabinet member esponsible for local government; 20 “multiple purposes”, in relation to a property, means the use of a property for more than one purpose; “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: Munici- 25 pal Finance Management Act, 2003 (Act No. 56 of 2003); “municipality”- (a) as a corporate entity, means a municipality described in section 2 of the
Municipal Systems Act; and (b) as a geographical area, means a municipal area demarcated in terms of the 30
Local Government: Municipal Demarcation Act, 1998 (Act No. 27 of 1998); “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); 35 “Municipal Systems Act” means the Local Government: Municipal Systems A ct, 2000 (Act No. 32 of 2000); “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 40 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 thlat
(b) a property identified by the Minister by notice in the Gazette where tine 45
“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; “organ of state” means an organ of state as defined in section 239 of the Constitution; 50
body of persons;
reason was not rated before that date; and
phasing-in of a rate is not justified;
14 No. 26351 GOVERNMENT GAZETIT, 17 MAY 2004
Act No. 6, 2004 LOCAL GOVERNMENT: MUNICIPAL PROPERTY RATES ACT. 2004
66 owner”- (a) in relation to a property referred to in paragraph (a) of the definition of
“property”, means 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 5 “property”, means a person in whose name the right is registered;
(c) in relation to a land tenure right referred to in paragraph ( c ) of the definition of “property”, means a person in whose name the right is registered or to whom it was granted in terms of legislation; or
(d) in relation to public service infrastructure referred to in paragraph (d) of the 10 definition of “property”, means the organ of state which owns or controls that public service infrastructure as envisaged in the definition of “publicly controlled”,
provided that a person mentioned below may for the purposes of this Act be regarded by a municipality as the owner of a property in the following cases: 15 (i) A trustee, in the case of a property 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 in
(iv) a judicial manager, in the case of a property in the estate of a person und.er 20
(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 25
municipality and is leased by it; or (viii) a buyer, in the case of a property that was sold by a municipality and of which
possession was given to the buyer pending registration of ownership in the name of the buyer;
“permitted use”, in relation to a property, means the limited purposes for which 30 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; or 35
liquidation;
judicial management;
(b) any alleviation of any such restrictions; “person” includes an organ of state; “prescribe” means prescribe by regulation in terms of section 83;
( a ) immovable property registered in the name of a person, including, in the case 40 of a sectional title scheme, a sectional title unit registered in the name of a person;
(b) a right registered against immovable property in the name of a person, excluding a mortgage bond registered against the property;
(c) a land tenure right registered in the name of a person or granted to a person in 45 terms of legislation; or
(d) public service infrastructure; “property register” means a register of properties referred to in section 23; “protected area” means an area that is or has to be listed in the register referreld to in section 10 of the Pr tect d Ar as Act; so
(a), or on such lower percentage as the Minister may determine in terms of section 17 (4); or
26 No. 26357 GOVERNMENT GAZETTE, 17 MAY 2004
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(e) in the case of property to which section 17(l)(h) applies, on the market value of the property less the amount stated in that section, or on such other amount as the Minister may determine in terms of section 17(3).
(2) A rate levied by a municipality on properties with a market value below a prescribed valuation level may, instead of a rate determined in terms of subsection (I.), 5 be a uniform fixed amount per property.
(3) If a municipality opts in terms of subsection (2) to determine a uniform fixed amount per property falling within a specific category, such fixed amount may not exceed a prescribed percentage of the amount due for rates payable on a property in that category with a market value equal to the prescribed valuation level. 10
Period for which rates may be levied
12. (1) When levying rates, a municipality must levy the rate for a financial year. A rate lapses at the end of the financial year for which it was levied.
(2) The levying of rates must form part of a municipality’s annual budget process ,as set out in Chapter 4 of the Municipal Finance Management Act. A municipality must 15 annually at the time of its budget process review the amount in the Rand of its current rates in line with its annual budget for the next financial year.
(3 j A rate levied for a financial year may be increased during a financial year only as provided for in section 28 (6) of the Municipal Finance Management Act.
Commencement of rates 20
13. (1) A rate becomes payable- (a ) as from the start of a financial year; or (b) if the municipality’s annual budget is not approved by the start of the financi,al
year, as from such later date when the municipality’s annual budget, including a resolution levying rates, is approved by the provincial executive in terms of 25 section 26 of the Municipal Finance Management Act.
(2) Subsection (1) does not affect the application of sections 17(2)(h) and (c) and (5j(b) and (e) , 55 and 78(4).
Promulgation of resolutions levying rates
14. (1 j A rate is levied by a municipality by resolution passed by the municipal 30 council with a supporting vote of a majority of its members.
(2) A resolution levying rates in a municipality must be promulgated by publishing the resolution in the Provincial Gazette.
( 3 ) Whenever a municipality passes a resolution in terms of subsection (l) , the municipal manager must, without delay- 35
(ij at the municipality’s head and satellite offices and libraries; and (iij if the municipality has an official website or a website available to it as
envisaged in section 21B of the Municipal Systems Act, on that website; and 40
( a ) conspicuously display the resolution for a period of at least 30 days-
(b) advertise in the media a notice stating that- (i) a resolution levying a rate on property has been passed by the council;
and (ii) the resolution is available at the municipality’s head and satellite offices
and libraries for public inspection during office hours and, if the 45 municipality has an official website or a website available to it, that the resolution is also available on that website.
Exemptions, reductions and rebates
15. (1) A municipality may in terms of criteria set out in its rates policy- (a) exempt a specific category of owners of properties, or the owners of a specific 50
category of properties, from payment of a rate levied on their property; or (b) grant to a specific category of owners of properties, or to the owners of a
specific category of properties, a rebate on or a reduction in the rates payable in respect of their properties.
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Act No. 6, 2004 LOCAL GOVERNMENT: MUNICIPAL PROPERTY RATES ACT, 2004
(2) When 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 when granting exemptions, rebates or reductions in respect of categories of owners of properties, such categories may include-
(a) indigent owners; (0) owners dependent on pensions or social grants for their livelihood; ( c ) owners temporarily without income; (d) owners of property situated within an area affected by -
(i) a disaster within the meaning of the Disaster Management Actl 2002 (Act
(ii) any other serious adverse social or economic conditions:,
determined by the municipality; or
No. 57 of 2002); or
(e) owners of residential properties with a market value lower than an amount
(fl owners of agricultural properties who are bonaJide farmers. (3) The municipal manager must annually table in the council of the municipality a--
(a ) list of all exemptions, rebates and reductions granted by the municipality in
(b) statement reflecting the income for the municipality foregone during the terms of subsection (1) during the previous financial year; and
previous financial year by way of- (i) such exemptions, rebates and reductions;
(ii) exclusions referred to in section 17(l)(a), (e), (g), (h) and (i); and (iii) the phasing-in discount granted in terms of section 21.
(4) All exemptions, rebates and reductions projected for a financial year must be reflected in the municipality’s annual budget for that year as-
( a ) income on the revenue side; and ( 6 ) expenditure on the expenditure side.
Part 3: Limitations on levying of rates
Constitutionally impermissible rates
16. (1) In terms of section 229(2)(a) of the Constitution, a municipality may not exercise its power to levy rates on property in a way that would materially and unreasonably prejudice-
( a ) national economic policies: (b) economic activities across its boundaries; or (c) the national mobility of goods, services, capital or labour.
(2) (a ) If a rate on a specific category of properties, or a rate on a specific category of properties above a specific amount in the Rand, is materially and unreasonably prejudicing any of the matters listed in subsection (I), the Minister, after notifying the Minister of Finance, must, by notice in the Gazette, give notice to the relevant municipality or municipalities that the rate must be limited to an amount in the Rand specified in the notice. (0) A municipality affected by a notice referred to in paragraph (a ) must give effect to
the notice and, if necessary, adjust its budget for the next financial year accordingly. (3) (a ) Any sector of the economy, after consulting the relevant municipality or
municipalities and organised local government, may, through its organised structures, request the Minister to evaluate evidence to the effect that a rate on any specific categor,y of properties, or a rate on any specific category of properties above a specific amount in the Rand, is materially and unreasonably prejudicing any of the matters listed in subsection (1).
(0) If the Minister is convinced by the evidence referred to in paragraph (a ) that a rate on any specific category of properties, or a rate on any specific category of properties above a specific amount in the Rand, is materially and unreasonably prejudicing any of the matters listed in subsection (l), the Minister must act in terms of subsection (2).
(4) A notice issued in terms of subsection (2) must give the reasons why a rate on the relevant category of properties, or a rate on the relevant category of properties above the amount specified in the notice, is materially and unreasonably prejudicing a matter listed in subsection (1).
( 5 ) The Minister. after consultation with the Minister of Finance, may b y notice in the Gazette issue guidelines to assist municipalities in the exercise of their power to levy rates consistent with subsection (1).
5
10
15
20
25
30
35
40
45
50
55
60
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Act No. 6,2004 LOCAL GOVERNMENT: MUNICIPAL PROPERTY RATES ACT. 2004
Other impermissible rates
17. (1) A municipality may not levy a rate- on the first 30% of the market value of public service infrastructure; on any part of the seashore as defined in the Seashore Act, 1935 (Act No. 2:l of 1935); 5 on any part of the territorial waters of the Republic as determined in terms of the Maritime Zones Act, 1994 (Act No. 15 of 1994); on any islands of which the state is the owner, including the Prince Edward Islands referred to in the Prince Edward Islands Act, 1948 (Act No. 43 of 1948); 10 on those parts of a special nature reserve, national park or nature reserve within the meaning of the Protected Areas Act, or of a national botanical garden within the meaning of the National Environmental Management: Biodiversity Act, 2004, which are not developed or used for commercial, business, agric ltural or residential purpos s; 15 on mineral rights within the meaning of paragraph (bj of the definition of “property” in section 1; on a property belonging to a land reform beneficiary or his or her heirs, provided that this exclusion lapses ten years from the date on which such beneficiary’s title was registered in the office of the Registrar of Deeds; 20 on the first RI 5 000 of the market value of a property assigned in the valuation roll or supplementary valuation roll of a municipality to a category determined by the municipality- (i) for residential properties; or
(ii) for properties used for multiple purposes, provided one or more 25
on a property registered in the name of and used primarily as a place of public worship by a religious community, including an official residence registered in the name of that community which is occupied by an office-bearer of that community who officiates at services at that place of worship. 30
components of the property are used for residential purposes; or
(2) (a ) The exclusion from rates of a property referred to in subsection (l)(e) lapses if the declaration of that property as a special nature reserve, national park, nature reserve or national botanical garden, or as part of such a reserve, park or botanical garden, is withdrawn in terms of the applicable Act mentioned in that subsection.
the owner, upon withdrawal of the declaration, becomes liable to the municipality concerned for any rates that, had it not been for subsection (1) (e), would have been payable on the property during the period commencing from the effective date of the current valuation roll of the municipality. If the property was declared as a protected area after the effective date of the current valuation roll, rates are payable only from the date 40 of declaration of the property.
(c) The amount for which an owner becomes liable in terms of paragraph (b) must he regarded as rates in arrears, and the applicable interest on that amount is payable to the municipality.
because of-
(b) If the property in respect of which the declaration is withdrawn is privately owned, 35
(d) Paragraphs (b) and ( c ) apply only if the declaration of the property was withdrawn 45
a decision by the private owner for any reason to withdraw from the agreement concluded between the private owner and the state in terms of the Protected Areas Act, and in terms of which the private owner initially consented tohe property being declared as a protected area; or 50 a decision by the state to withdraw from such agreement because of a breach of the agreement by the private owner.
-
(3) The Minister, acting with the concurrence of the Minister of Finance, may from time to time by notice in the Gazette, increase the monetary threshold referred to in subsection (1)(/z) to reflect inflation. 55
(4) The Minister may, by notice in the Gazette, lower the percentage referred to in subsection ( l ) (a ) , but only after consultation with-
( a ) relevant Cabinet members responsible for the various aspec1.s of public
( 6 ) organised local government; and 60 ( e ) relevant public service infrastructure entities.
service infrastructure;
( 5 ) ( a ) The exclusion from rates of a property referred to in subsection (l)(i) lapses if the property-
(i) is disposed of by the religious community owning it; or
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Act No. 6, 2004 LOCAL GOVERNMENT: MUNICIPAL PROPERTY RATES ACT, 2004
(ii) is no longer used primarily as a place of public worship by a re1igiou:s community or, in the case of an official residence contemplated in that subsection, is no longer used as such an official residence.
(b ) If the exclusion from rates of a property used as such an official residence lapses, the religious community owning the property becomes liable to the municipality 5 concerned for any rates that, had it not been for subsection (l)(i), would have been payable on the property during the period of one year preceding the date on which the exclusion lapsed.
(c) The amount for which the religious community becomes liable in terms of paragraph (b) must be regarded as rates in arrears, and the applicable interest on that 10 amount is payable to the municipality.
Exemption of municipalities from provisions of section 17
18. (1) A municipality may apply, in writing, to the Minister to be exempted from paragraph (a) , (e ) , (g) or (h) of section 17( 1) if it can demonstrate that an exclusion in terms of the relevant paragraph is compromising or impeding its ability or right to 15 exercise its powers or to perform its functions within the meaning of section 151(4) of the Constitution.
(2) Any exemption granted by the Minister in terms of subsection (1)- (a) must be in writing; and (b) is subject to such limitations and conditions as the Minister may determine. 20
Impermissible differentiation
19. (1) A municipality may not levy- (a) different rates on residential properties, except as provided for in sections
(b) a rate on non-residential properties that exceeds a prescribed ratio to the rate 25
(c) rates which unreasonably discriminate between categories of non-residential
(d) additional rates except as provided for in section 22.
ll(l)(b), 21 and 89;
on residential properties determined in terms of section 11 (l)(a);
properties; or
(2) The ratio referred to in subsection (l)(b) may only be prescribed with the 30 concurrence of the Minister of Finance.
Limits on annual increases of rates
20. (1) The Minister may, with the concurrence of the Minister of Finance and by notice in the Gazette, set an upper limit on the percentage by which rates on properties or a rate on a specific category of properties may be increased. 35
(a) different kinds of municipalities which may, for the purposes of this section, be defined in the notice either in elation to categories of municipalities within the meaning of the Municipal Structures Act or in any other way; or
(b) different categories of properties, subject to section 19. 40 (3) The Minister may, on written application by a municipality, and on good cause.,
(4) This section must be read with section 43 of the Municipal Finance Management
(2) Different limits may be set in terms of subsection (1) for-
exempt a municipality from a limit set in terms of subsection (1).
Act.
Compulsory phasing-in of certain rates 45
21. (1) (a) A rate levied on newly rateable property must be phased in over a period. of three financial years, subject to subsection ( 5 ) .
(b) A rate levied on property referred to in section 17(l)(g) must, after the exclusion period referred to in that section has lapsed, be phased in over a period of three financial years, subject to subsection (5) of this section. 50
(c) A rate levied on newly rateable property owned and used by organisations conducting specified public benefit activities and registered in terms of the Income Tax Act for those activities must be phased in over a period of four financial years, subject to subsection (5) .
must- (2) The phasing-in discount on a property referred to in subsection (1) (a ) or (b) 55
(a) in the first year, be at least 75 per cent of the rate for that year otherwise applicable to the property;
34 No. 26357 GOVERNMENT GAZETTE, 17 MAY 2004
Act No. 6, 2004 LOCAL G VERNMENT MUNICIPAL PROPERTY RATES ACT, 2004
(b) in the second year, be at least 50 per cent of the rate for that year otherwise
(c) in the third year, be at least 25 per cent of the rate for that year otherwise applicable to the property; and
applicable to the property. (3) No rate may be levied during the first year on property referred to in subsection ( I ) 5
(c). Thereafter. the phasing-in discount on such property- (a) in the second year, must be at least 75 per cent of the rate for that year
(b) in the third year, must be at least 50 per cent of the rate for that year otherwise
(c) in the fourth year, must be at least 25 per cent of the rate for that year
(4) A rate levied on property referred to in subsection (1) may not be higher than the
(5) The MEC for local government may, on written request by a municipality, extend 15
otherwise applicable to the property;
applicable to the property; and 10
otherwise applicable to the property.
rate levied on similar property or category of properties in the municipality.
for that municipality the phasing-in period referred to in subsection (l)(a), (b) or (c) to a period which together with the initial period does not exceed six financial years.
(6) When extending a phasing-in period, the MEC for local government must determine the minimum phasing-in discount on the rate payable during each finanaal year in the extended period. 20
Part 4: Additional rates
Special rating areas
22. (1) A municipality may by resolution of its council- (a) determine an area within that municipality as a special rating area; (b ) levy an additional rate on property in that area for the purpose of raising funds 25
(c) differentiate between categories of properties when levying an additional rate for improving or upgrading that area; and
referred to in paragraph (b). (2) Before determining a special rating area, a municipality must-
(a) consult the local community, including on the following matters: 30 (i) the proposed boundaries of the area; and
(ii) the proposed improvement or upgrading of the area; and (b) obtain the consent of the majority of the members of the local community in
the proposed special rating area who will be liable for paying the additional rate. 35
must determine the boundaries of the area; (3) When a municipality determines a special rating area, the municipality-
must indicate how the area is to be improved or upgraded by funds derived from the additional rate; must establish separate accounting and other record-keeping systems regard- 40 mg- (i) the revenue generated by the additional rate; and
(ii) the improvement and upgrading of the area; and may establish a committee composed of persons representing the communiLy in the area to act as a consultative and advisory forum for the municipality on 45 the improvement and upgrading of the area, provided representivity, including gender representivity, is taken into account when such a committee is established. Such a committee must be a subcommittee of the ward committee or committees in the area, if the municipality has a ward committee or committees in the area. 50
(4) This section may not be used to reinforce existing inequities in the development of the municipality, and any determination of a special rating area must be consistent with the objectives of the municipality's integrated development plan.
(5) This section must be read with section 85 of the Municipal Systems Act if this section is applied to provide funding for an internal municipal service district 55 established in terms of that section of the Municipal Systems Act.
36 No. 26357 GOVERNMENT GAZETTE, I7 MAY 2004
Act No. 6,2004 LOCAL GOVERNMENT: MUNICIPAL PROPERTY RATES ACT. 2004
Part 5: Municipal register of properties
Register of properties
23. (1) A municipality must draw up and maintain a register in respect of properties
(2) Part A of the register consists of the current valuation roll of the municipality, 5 situated within that municipality, consisting of a Part A and a Part B.
including any supplementary valuation rolls of the municipality prepared in terms of section 78.
(3) Part B of the register must specify which properties on the valuation roll or any supplementary valuation rolls are subject to-
( a ) an exemption fr m he rate in terms of section 15; 10 (bJ a rebate on or a reduction in the rate in terms of section 15; (c) a phasing-in of the rate in terms of section 21; or (d) an exclusion referred to in section 17(l)(a), (e ) , (g), (h) and (i).
(4) The register must be open for inspection by the public during office hours. If the municipality has an official website or another website available to it, the register must 15 be displayed on that website.
( 5 ) A municipality must at regular intervals, but at least annually, update Part B of the register. Part A of the register must be updated in accordance with the provisions of this Act relating to the updating and supplementing of valuation rolls.
CHAPTER 3 20
LIABILITY FOR RATES
Property rates payable by owners
24. ( I ) ,4 rate levied by a municipality on a property must be paid by the owner of the property, subject to Chapter 9 of the Municipal Systems Act.
(2) (a) Joint owners of a property are, subject to paragraph (b), jointly and severally 25 liable for the amount due for rates on that property.
(b) A municipality must, in respect of agricultural property that is owned by more than one owner in undivided shares where the holding of such undivided shares was allowed before the commencement of the Subdivision of Agricultural Land Act, 1970 (Act No. 70 of 1970), consider whether in the particular circumstances it would be more 30 appropriate for the municipality to-
(i) hold any one of the joint owners in terms of paragraph (a) liable for all rates
(ii) hold any joint owner only liable for that portion of the rates levied on the levied in respect of the agricultural property concerned; or
property that represents that joint owner’s undivided share in the agricultural 35 property.
Payment of rates on property in sectional title schemes
25. (1 ) A rate levied by a municipality on a sectional title unit is payable by the owner
(2) A municipality may not recover the rate on a sectional title unit, or any part of such 40 of the unit.
rate, from the body corporate controlling a sectional title scheme, except when the body corporate is the owner of any specific sectional title unit.
( 3 ) 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.
(4) This section must b read subject to secti n 92. 45
Method and time of payment
26. (1) A municipality may recover a rate- ( a ) on a monthly basis or less often as may be prescribed in terms of the
(h) annually, as may be agreed to with e owner of the property. 50 Municipal Finance Management Act; or
(2) (a) If a rate is payable in a single amount annually it must be paid on or before a date determined by the municipality.
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Act No. 6,2004 LOCAL. GOVERNMENT: MUNICIPAL PROPERTY RATES ACT, 2004
(bj If a rate is payable in instalments it must be paid on or before a date in each period
(3) Payment of a rate may be deferred but only in special circumstances. determined by the municipality.
Accounts to be furnished
27. (1) A municipality must furnish each person liable for the payment of a rate with 5 a written account specifying-
the amount due for rates payable; the date on or before which the amount is payable; how the amount was calculated; the market value of the property; 10 if the property is subject to any compulsory phasing-in discount in terms of section 21, the amount of the discount; and if the property is subject to any additional rate in terms of section 22, the amount due for additional rates.
(2) A person is liable for payment of a rate whether or not that person has received a 15 written account in terms of subsection (1). If a person has not received a written account, that person must make the necessary inquiries from the municipality.
(3) The furnishing of accounts for rates in terms of this section is subject to section 102 of the Municipal Systems Act.
Recovery of rates in arrears from tenants and occupiers 20
28. (1) If an amount due for rates levied in respect of a property is unpaid by the owner of the property after the date determined in terms of section 26(2), the municipality may recover the amount in whole or in part from a tenant or occupier of the property, despite any contractual obligation to the contrary on the tenant or occupier. The municipality may recover an amount only after the municipality has served a written notice on the. 25 tenant or occupier.
(2) The amount a municipality may recover from the tenant or occupier of a property in terms of subsection (1) is limited to the amount of the rent or other money due and payable, but not yet paid, by the tenant or occupier to the owner of the property.
must be set off by the tenant or occupier against any money owed by the tenant or occupier to the owner.
(4) The tenant or occupier of a property must, on request by a municipality, furnish the municipality with a written statement specifying all payments to be made by the tenant or occupier to the owner of the property for ent or other money payable on the property 35 during a period determined by the municipality.
(3) Any amount a municipality recovers from the tenant or occupier of the property 30
Recovery of rates from agents
29. (1) A municipality may, despite the Estate Agents Affairs Act, 1976 (Act No. 112 of 1976), recover the amount due for rates on a property in whole or in part from the agent of the owner, if this is more convenient for the municipality. 40
(2) A municipality may recover the amount due for rates from the agent of the owner only after it has served a written notice on the agent.
(3) The amount a municipality may recover from the agent is limited to the amount of any rent or other money received by the agent on behalf of the owner, less any commission due to the agent. 45
(4) The agent must, on request by a municipality, furnish the municipality with a written statement specifying all payments for rent on the property and any other money received by the agent on behalf of the owner during a period determined by the municipality.
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Act No. 6,2004 LOCAL, GOVERNMENT: MUNICIPAL PROPERTY RATES ACT. 2004
CHAPTER 4
GENERAL VALUATION OF RATEABLE PROPERTY
Part 1: General
General valuation and preparation of valuation rolls
30. (1) A municipality intending to levy a rate on property must in accordance with 5 this Act cause-
(a) a general valuation to be made of all properties in the municipality determined
(b) a valuation roll to be prepared of all properties determined in terms of
(2) All rateable properties in the municipality must be valued during a general valuation, including all properties fully or partially excluded from rates in terms of section 17(l)(a), (e), (g), (h) and (i): Provided that-
(a) properties referred to in section 7 ( 2 ) (a) must be valued only to the extent that the municipality intends to levy a rate on those properties; and 15
(b) the Minister may fully or partially exempt a municipality from the obligation to value properties excluded from rates in terms of section 17 (1) (e), (g) and (i) if the municipality can demonstrate that the valuation of those properties :is too onerous for it, given its financial and administrative capacity.
roll: Provided that properties referred to in subsection (2)(b) and in section 7 (2) (a) (i) and (ii) must be included in the valuation roll whether or not they were valued.
in terms of subsection (2); and
subsection (3). 10
(3) All properties valued in terms of subsection (2) must be included in the valuation 20
Date of valuation
31. (1) For the purposes of a general valuation, a municipality must determine a date that may not be more than 12 months before the start of the financial year in which the 25 valuation roll is to be first implemented.
(2) The general valuation must reflect the market value of properties determined i n accordance with-
(a) market conditions which applied as at the date of valuation; and (b) any other applicable rovisions of this Act. 30
Commencement and period of validity of valuation rolls
32. (1) 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 (6) remains valid for that financial year or for one or more subsequent financial 35
years as the municipality may decide, but in total not for more than four financial years.
(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) if the provincial executive has intervened in the municipality in terms of 40
(b) on request by the municipality, in other exceptional circumstances which
(3) The valuation roll of a municipality remains valid for one year after the date on which the roll has lapsed if the provincial executive intervenes in a municipality in terms 45 of section 139 of the Constitution either before or after that date, provided that the intervention was caused by the municipality's failure-
(a) to determine a date of valuation for its general valuation in terms of section
(b) to designate a person as its municipal valuer in terms of section 33. 50
section 139 of the Constitution; or
warrant such extension.
31; or
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Part 2: Municipal valuers
Designation of municipal valuers
33. (1) A municipality must, before the date of valuation, designate a person as municipal valuer. A municipality may designate either one of its officials or a person in private practice as its municipal valuer. 5
( 2 ) If a municipality decides to secure the services of a person in private practice ;as its municipal valuer, it must-
( a ) follow an open, competitive and transparent process in accordance with
(bj designate the successful bidder as its municipal valuer by way of a written 10 Chapter 11 of the Municipal Finance Management Act; and
contract setting out the terms and conditions of the designation. (3 ) A municipality must issue to the person designated as its municipal valuer an
identity card in the prescribed format containing a photograph of that person. (4) A municipality may withdraw the designation of a person as its municipal valuer
but only on the grounds of - 15 ( a ) misconduct, incapacity or incompetence; (b) non-compliance with a provision of this Act; (c) under-performance; or (d) breach of contract, in the case of a person referred to in subsection (2).
Functions of municipal valuers 20
34. The valuer of a municipality must in accordance with this Act- value all properties-in the municipality determined in te1ms of section 30(2); prepare a valuation roll of all properties in the municipality determined in terms of section 30 (3); sign and certify the valuation roll; 25 submit the valuation roll to the municipal manager within a prescribed period; consider and decide on objections to the valuation roll; attend every meeting of an appeal board when that appeal board- (i) hears an appeal against a decision of that valuer; or
(ii) reviews a decision of that valuer; 30 prepare a supplementary valuation roll whenever this becomes necessary; assist the municipality in the collection of postal addresses of owners where such addresses are reasonably determinable by the valuer when valuing properties; and generally, provide the municipality with appropriate administrative support 35 incidental to the valuation roll.
Assistant municipal valuers
35. (1) The municipal manager may designate officials of the municipality or persons in private practice as assistant municipal valuers to assist the valuer of the municipality with the p rformance of any of the functions set out in section 34. 40
(2) If the municipal valuer is not an official of the municipality, the municipal valuer may, with the concurrence of the municipal manager, designate persons in private practice as assistant municipal valuers to assist the municipal valuer with the performance of any of the functions set out in section 34.
terms of subsection (2), a municipal valuer may recover from the municipality the cost of securing the services of those persons but only in terms of the contract concluded between the municipal valuer and the municipality in terms of section 33(2)(b).
(4) A municipality must issue to the person designated as an assistant municipal valuer an identity card in the prescribed format containing a photograph of that person. 50
(3) When designating persons in private practice as assistant municipal valuers in 45
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(5) A municipality may withdraw the designation f a person referred to in subsection (1) as an assistant municipal valuer, and a municipal valuer may, and must if requested by the municipality, withdraw the designation of a person referred to in subsection (2) as an assistant municipal valuer. The designation of a person may be withdrawn only on the grounds of -.
(a ) misconduct, incapacity or incompetence; (h ) non-compliance with a provision of this Act; (c) under-performance; or (d) breach of any of the terms or conditions of the designation, in the case of a
person designated as an assistant municipal valuer in terms of subsection (2).
Data-collectors
36. (1) The municipal manager may designate officials of the municipality or persons who are not officials of the municipality as data-collectors to assist the valuer of the municipality with the collection of data and other related work.
(2) If the municipal valuer is not an official of the municipality, the municipal valuer may, with the concurrence of the municipal manager, designate persons, other than officials of the municipality, as data-collectors to assist the municipal valuer with the collection of data and other related work.
(3 ) When designating persons as data-collectors in terms of subsection (2) , a municipal valuer may recover from the municipality the cost of securing the services of those persons, but only in terms of the contract concluded between the municipal valuer and the municipality in terms of section 33(2)(b).
(4) A municipality must issue to the person designated as a data-collector an identity card in the prescribed format containing a photograph of that person.
(5) A municipality may withdraw the designation f a person referred to in subsection (1) as a data-collector, and a municipal valuer may, and must if requested by the municipality, withdraw the designation of a person referred to in subsection (2) as data-collector.
Delegations by municipal valuers
37. (1) The valuer of a municipality- ( a ) may delegate -
(i) to an assistant municipal valuer any powers or duties reasonably necessary to assist the municipal valuer to exercise a power or to comply with a duty assigned to a municipal valuer in terms of this Act; or
(ii) to a data-collector any powers or duties reasonably necessary to assist the municipal valuer in the collection and processing of data; and
(b) must regularly review delegations issued in terms of paragraph (a ) and, if necessary, amend or withdraw any of those delegations.
(2 ) A delegation in terms of subsection (1)- ( a ) must be in writing; (b ) is subject to such limitations and conditions BS the municipal valuer may
(c) does not divest the municipal valuer of the responsibility concerning the
(3 ) The municipal valuer may confirm, vary or revoke any decision taken in consequence of a delegation in terms of this section, but no such variation or revocation of a decision may detract from any rights that may have accrued as a result of the decision.
impose in a specific case; and
exercise of the delegated power or the performance of the delegated duty.
Municipal partnerships
38. (1) A municipality may enter into an agreement with another municipality or municipalities to designate a single municipal valuer and to share the costs of preparing valuation rolls.
(2) Section 33(2) does not apply if the municipalities concerned agree to appoint an official of one of them as their municipal valuer.
5
10
15
20
25
30
35
40
45
50
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Act No. 6,2004 LOCAL GOVERNMF,NT: MUNICIPAL PROPERTY RATES ACT, 2004
Qualifications of municipal valuers
39. (1) A municipal valuer- (a) must be a person registered as a professional valuer or professional associated
valuer in terms of the Property Valuers Profession Act, 2000 (Act No. 47 of 2000); and 5
(i) of the designating municipality, if that municipality is a metropolitan or
(ii) of either the designating municipality or the district municipality in
(b) may not be a councillor-
a district municipality; or
which that municipality falls, if the designating municipality is a local 10 municipality.
(2) An assistant municipal valuer- (a) must be a person registered as a professional valuer, a professional associated
valuer or a candidate valuer in terms of the Property Valuers Profession Act, 2000; and 15
(i) of the designating municipality, if that municipality is a metropolitan or
(ii) of either the designating municipality or the district municipality in
(bj may not be a councillor-
district municipality; or
which that municipality falls, if the designating municipality is a local 20 municipality.
Prescribed declaration
40. Before assuming office, the valuer of a municipality or an assistant municipal valuer must-
(a) make the prescribed declaration before a commissioner of oaths regarding the 25
(b) lodge a certified copy of such declaration with the municipal manager. performance of office: and
Inspection of property
41. (1) Subject to any legislation that restricts or prohibits entry to any specific property, the valuer of a municipality, assistant municipal valuer, data-collector or other 30 person authorised by the municipal valuer in writing, may-
(a) between 07:30 and 19:OO on any day except a Sunday or public holiday, enter any property in the municipality that must be valued in terms of this Act; and
(b) inspect that property for the purpose of the valuation. (2) If a person authorised by a municipal valuer in terms of subsection (1) is not in 35
possession of an identity card in the prescribed format containing a photograph of that person, the municipality must issue to that person such a card.
(3) When entering any property in terms of subsection (l), a municipal valuer, assistant municipal valuer, data-collector or other person authorised in terms of that subsection- 40
(a) must, on demand by a person on that property, produce his or her identity card;
(b) may be accompanied by an interpreter or any other person whose assistance and
may reasonably be required in the circumstances.
Access to information 45
42. (1) A municipal valuer or assistant municipal valuer may- (a) require the owner, tenant or occupier of a property which the valuer must
value in terms of this Act, or the agent of the owner, to give the valuer access to any document or information in possession f the owner, tenant, occupier or agent which the valuer easonably requires for purpose of valuing the 50 property;
(b) make extracts from any such document or information; and (c) in writing require the owner, tenant or occupier of the property, or the agent of
the owner, to provide the valuer, either in writing or orally, with particulars regarding the property which the valuer reasonably requires for purpose of 55 valuing the property.
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(2) Where any document, information or particulars were not provided when required in terms of subsection (1) and the owner concerned relies on such document, information or particulars in an appeal to an appeal board, the appeal board may make an order as to costs in terms of section 70 if the appeal board is of the view that the failure to so have provided any such document, information or particulars has placed an 5 unnecessary burden on the functions of the municipal valuer or the appeal board.
Conduct of valuers
43. (1) A municipal valuer or assistant municipal valuer- (a) must disclose to a municipality any personal or any private business interest
that the valuer, or any spouse, parent, child, partner or business associate of 10 the valuer, may have in any property in the municipality;
for private gain or to improperly benefit another person; and
Systems Act. 15
(b) may not use the position as a municipal valuer or assistant municipal valuer
(c) must comply with the Code of Conduct set out in Schedule 2 to the Municipal
(2) A municipal valuer or assistant municipal valuer who is not an official of a municipality must comply with the Code of Conduct as if that person is such an official.
(3) A municipal valuer or assistant municipal valuer who contravenes or fails to comply with subsection (1) is guilty of misconduct and subject to dismissal as municipal valuer or assistant municipal valuer. 20
(4) A decision in terms of subsection (3) to dismiss a municipal valuer or assistant municipal valuer who is a municipal official must be based on a finding by an enquiry conducted in accordance with the terms and conditions of employment applicable to that person.
a property in which that valuer, or any spouse, parent, child, partner or business associate of the valuer, has a personal or private business interest, and the municipal manager must designate a special valuer to perform that valuation. A special valuer must be qualified for designation as a municipal valuer or assistant municipal valuer in terms of section 39. 3 0
( 5 ) A municipal valuer or assistant municipal valuer may not perform the valuation of 25
Protection of information
44. (1) A municipal valuer, assistant municipal valuer, data-collector or other person may not disclose to any person any information obtained whilst exercising a power referred to in section 41 or 42, except-
(a) within the scope of that person’s powers and duties in terms of this Act; 35 (b) for the purpose of carrying out the provisions of this Act; (c) for the purpose of legal proceedings; or (d) in terms of a court order.
(2) Subsection (1) also applies to a person accompanying a municipal valuer, assistant municipal valuer, data-collector or other person authorised in terms of section 41 (1) 40 when entering any property in terms of that section.
CHAPTER 5
VALUATION CRITERIA
Valuation
45. (1) Property must be valued in accordance with generally recognised valuation 45
(2) For the purposes of subsection (1)- practices, methods and standards, and the provisions of this Act.
(a) physical inspection of the property to be valued is optional; and (b ) comparative, analytical and other systems or techniques may be used,
including aerial photography and computer-assisted mass appraisal systems 50
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Act No. 6,2004 LOCAL GOVERNMENT: MUNICIPAL PROPERTY RATES ACT, 2004
or techniques, taking into account changes in technology and valuation systems and techniques.
(3) (a) If the available market-related data of any category of rateable property is not sufficient for the proper application of subsections (1) and (2), such property may be valued in accordance with any mass valuation system or technique approved by the 5 municipality concerned, after having considered any recommendations of its municipal valuer and as may be appropriate in the circumstances.
(b) A mass valuation system or technique that may be approved by a municipality in terms of paragraph (a) includes a valuation system or technique based on predetermined bands of property values and the designation of properties to one of those bands on the 10 basis of minimal market-related data.
General basis of valuation
46. (1) Subject to any other applicable provisions of this Act, the market value of a property is 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. 15
(2) In determining the market value of a property, the following must be considered for purposes of valuing the property:
(a) The value of any licence, permission or other privilege granted in terms of legislation in relation to the property;
(b) the value of any immovable improvement on the property that was erected or 20 is being used for a purpose which is inconsistent with or in contravention of the permitted use of the property, as if the improvement was erected or is being used for a lawful purpose; and
(c) the value of the use of the property for a purpose which is inconsistent with or in contravention of the permitted use of the property, as if the property is being 25 used for a lawful purpose.
for purposes of valuing the property: (3) In determining the market value of a property the following must be disregarded
(a) The value of any building or other immovable structure under the surface of the property which is the subject matter of any mining authorisation or mining 30 right defined in the Minerals Act, 1991 (Act No. 50 of 1991);
concerned, is immovable property, excluding- (i) a lift;
(ii) an escalator; 35 (iii) an air-conditioning plant; (iv) fire extinguishing apparatus; (v) a water pump installation for a swimming pool or for irrigation or
domestic purposes; and (vi) any other equipment or machinery that may be prescribed; and 40
(b) the value of any equipment or machinery which, in relation to the property
(c) any unregistered lease in respect of the property. (4) In determining the market value of a property used for agricultural purposes, the
value of any annual crops or growing timber on the property that have not yet been harvested as at the date of valuation must be disregarded for purposes of valuing the property. 45
(5) Where the available market related data is not sufficient to determine the market value of public service infrastructure, such public service infrastructure may be valued in accordance with any other method of valuation as may be prescribed.
Valuation of property in sectional title schemes
47. When valuing a property which is subject to a sectional title scheme, the valuer 50 must determine the market value of each sectional title unit in the scheme in accordance with section 46.
CHAPTER 6
VALUATION ROLLS
Contents of valuation rolls 55
48. (1) A valuation roll must list all properties in the municipality determined in terms of section 30 (3).
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Act No. 6,2004 LOCAL GOVERNMENT: MUNICIPAL PROPERTY RATES ACT, 2004
(2) The valuation roll must reflect the following particulars in respect of each property as at the date of valuation to the extent that such information is reasonably determinable:
(a ) The registered or other description of the property; (b) the category determined in terms of section 8 in which the property falls; (c) the physical address of the property; 5 (d) the extent of the property; (e) the market value of the property, if the property was valued; (’ the name of the owner; and (8) any other prescribed particulars.
Public notice of valuation rolls 10
49. (1) The valuer of a municipality must submit the certified valuation roll to the municipal manager, and the municipal manager must within 21 days of receipt of the roll-
(a ) publish in the prescribed form in the provincial Gazette, and once a week for two consecutive we ks advertise in the media, a notice- 15 (i) stating that the roll is open for public inspection for a period stated in the
notice, which may not be less than 30 days from the date of publication of the last notice; and
(ii) inviting every person who wishes to lodge an objection in respect of any matter in, or omitted from, the roll to do so in the prescribed manner 20 within the stated period;
(b) disseminate the substance of the notice referred to in paragraph (a) to the local community in terms of Chapter 4 of the Municipal Systems Act; and
(c) serve, by ordinary mail or, if appropriate, in accordance with section 115 of the Municipal Systems Act, on every owner of property listed in the valuation 25 roll a copy of the notice referred to in paragraph (a) together with an extract of the valuation roll pertaining to that owner’s property.
(2) If the municipality has an official website or another website available to it, the notice and the valuation roll must also be published on that website.
Inspection of, and objections to, valuation ro ls 30
50. (1) Any person may, within the period stated in the notice referred to in section 49 ( 1) (a)--
(a) inspect the roll during office hours; (b) on payment of a reasonable fee, request the municipality during office hours to
(c) lodge an objection with the municipal manager against any matter reflected in,
(2) An objection in terms of subsection (l)(c) must be in relation to a specific individual property and not against the valuation roll as such.
(3) A municipal manager must assist an objector to lodge an objection if that objector 40 is unable to read or write.
(4) A municipal council may also lodge an objection with the municipal manager concerned against any matter reflected in, or omitted from, the roll. The municipal manager must inform the council of any matter reflected in, or omitted from, the roll that affects the interests of the municipality. 45
(5 ) A municipal manager must, within 14 days after the end of the period stated in the notice referred to in section 49 (1) (a), submit all objections to the municipal valuer, who must promptly decide and dispose of the objections in terms of section 51.
(6) The lodging of an objection does not defer liability for payment of rates beyond the date determined for payment. 50
make extracts from the roll; and 35
or omitted from, the roll.
Processing of objections
51. A municipal valuer must promptly- (a ) consider objections in accordance with a procedure that may be prescribed; (b) decide objections on facts, including the submissions of an objector, and, if
(c) adjust or add to the valuation roll in accordance with any decisions taken. the objector is not the own r, of the own r; a d 55
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Compulsory review of decisions of municipal valuer
52. (1 ) If a municipal valuer adjusts the valuation of a property in terms of section 5 I
(a) the municipal valuer must give written reasons to the municipal manager; and (b ) the municipal manager must promptly submit to the relevant valuation appeal 5
board the municipal valuer’s decision, the reasons for the decision and all relevant documentation, for review.
(c) by more than 10 per cent upwards or downwards-
(2) An appeal board must - (a ) review any such decision; and (b) either confirm, amend or revoke th decision. 10
(3) If the appeal board amends or revokes the decision, the chairperson of the appeal board and the valuer of the municipality must ensure that the valuation roll is adjusted in accordance with the decisions taken by the appeal board.
Notification of outcome of objections and furnishing of reasons
53. (1) A municipal valuer must, in writing, notify every person who has lodged an 15 objection, and also the owner of the property concerned if the objector is not the owner, of-
(a) the valuer’s decision in terms of section 51 regarding that objection; (b) any adjustments made to the valuation roll in respect of the property
(c) whether section 52 applies to the decision. concerned; and 20
(2) Within 30 days after such notification, such objector or owner may, in writing, apply to the municipal manager for the reasons for the decision. A prescribed fee must accompany the application.
municipal manager, provide the reasons for the decision to the applicant, in writing. (3) The municipal valuer must, within 30 days after receipt of such application by the 25
Right of appeal
54. (1) An appeal to an appeal board against a decision of a municipal valuer in terms of section 51 may be lodged in the prescribed manner with the municipal manager concerned by- 30
(a) a person who has lodged an objection in terms of section 50 (1) (c) and who
(17) an owner of a property who is affected by such a decision, if the objector was
(c) the council of the municipality concerned, if the municipality’s interests are 35
is not satisfied with the decision of the municipal valuer;
not the owner; or
affected. (2) An appeal by-
(a) an objector must be lodged within 30 days after the date on which the written notice referred to in section 53( 1) was sent to the objector or, if the objector has requested reasons in terms of section 53(2), within 21 days after the day 40 on which the reasons were sent to the objector;
(b) an owner of such property must be lodged within 30 days after the date on which the written notice referred to in section 53(1) was sent to the owner o , if the owner has requested reasons in terms of section 53(2), within 21 days after the day on which t e r asons were s nt to the owner; or 45
(c) a municipal council must be lodged within 30 days after the date on which the decision was taken.
(3) (a) A municipal manager must forward any appeal lodged in terms of subsection (1 ) to the chairperson of the appeal board in question within 14 days after the end of the applicable eriod referred to in subsection (2). 5 0
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(b) The chairperson of an appeal board must, for purposes of considering any appeals, convene a meeting of the appeal board within 60 days after an appeal has been forwarded to the chairperson in terms of paragraph (a).
(c) When an appeal is forwarded to the chairperson of an appeal board in terms of paragraph (a), a copy of the appeal must also be submitted to the municipal valuer 5 concerned.
payment of rates beyond the date determined for payment.
Adjustments or additions to valuation rolls
(4) An appeal lodged in terms of this section does not defer a person's liability for
55. (1) Any adjustments or additions made to a valuation roll in terms of section 5 l(c), 10
(2) If an adjustment in the valuation of a property aEects the amount due for rates 52 (3) or 69 take effect on the effective date of the valuation roll.
payable on that property, the municipal manager must- ( a ) calculate-
(i) the amount actually paid on the property since the effective date; and 15 (ii) the amount payable in terms of the adjustment on the property since the
(b) 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. 20
(3) Where an addition has been made to a valuation roll as envisaged in subsection (l), the municipal manager must recover from the person liable for the payment of the rate the amount due for rates payable plus interest at a prescribed rate.
effective date; and
CHAPTER 7
VALUATION APPEAL BOARDS 25
Establishment of valuation appeal boards
56. (1) The MEC for local government must, by notice in the provincial Gazette, establish as many valuation appeal boards in the province as may be necessary, but not fewer than one in each district municipality and each metropolitan municipality.
municipality, such board must be stablished for one or more specific local municipalities or district management areas.
(2) If more than one appeal board is established within the area of a district 30
Functions
57. The functions of an appeal board are- (a ) to hear and decide appeals against he decisions of a municipal valuer 35
concerning objections to matters reflected in, or omitted from, the valuation roll of a municipality in the area for which it was established in terms of section 56; and
(b) to review decisions of a municipal valuer submitted to it in terms of section 52. 40
Composition
58. (1) An appeal board consists of- (a ) a chairperson, who must be a person with legal qualifications and sufficient
experience in the administration ofjustice; and (b) not fewer than two and not more than four other members with sufficient 45
knowledge of or experience in the valuation of property, of which at least one must be a professional valuer registered in terms of the Property Valuers Profession Act, 2000 (Act No. 47 of 2000).
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(2) The chairperson and other members of an appeal board must be appointed by the MEC for local government in the province, taking into account the need for representivity, including gender representivity.
(3) The MEC for local government must follow a transparent process complying with any prescribed nonns and standards when making appointments to an appeal board. 5
Disqualifications
59. ( I ) The following persons are disqualified from being a member of an appeal
An unrehabilitated insolvent; a person under curatorship; 10 a person declared to be of unsound mind by a court of the Republic; a person who, after 24 April 1994, was convicted of an offence and sentenced to imprisonment without an option of a fine for a period of not less than 12 months; a person who has been disqualified in terms of applicable legislation from 15 practicing as a valuer or lawyer; or a person who is in arrears to a municipality for rates or service charges for a period longer than three months. disqualification in terms of subsection (l)(d) ends five years after the
imprisonment has been completed. 20 (3) A member of an appeal board who is a councillor, an employee or valuer of a
municipality must withdraw from the proceedings of the board if a matter concerning that municipality’s valuation roll is considered by the board.
Term of office
60. The term of office of members of an appeal board is four years, but members are 25 eligible to be re-appointed.
Conditions of appointment
61. (1) The Minister must, after consultation with the MECs for local government, determine the conditions of appointment of members of an appeal board.
(2) Conditions of appointment may differ in respect of the chairperson and other 30 members of an appeal board.
(3) The municipality or municipalities for which an appeal board was established in terms of section 56 must remunerate the members of the appeal board in accordance with their conditions of appointment and the directions of the MEC for local government. 35
Conduct of members
62. (1) A member of an appeal board- ( a ) must perform the duties of office in good faith and without fear, favour or
prejudice; (b) must disclose any personal or any private business interest that that member or 40
any spouse, parent, child, partner or business associate of that member may have in any matter before the appeal board and must withdraw from the proceedings of the appeal board, unless the board decides that the member’s interest in the matter is trivial or not relevant, and announces its decision in public at the first available sitting of the board; 45
(c) may not use the position or privileges of a member for private gain or to improperly benefit another person; or
(d) may not act in any other way that compromises the credibility, impartiality, independence or integrity of the appeal board.
(2) A member of an appeal board who contravenes or fails to comply with subsection 50 (1) is guilty of misconduct.
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Termination of membership
63. (1) A person ceases to be a member of an appeal board when that person- (a) resigns; (b) is no longer eligible to be a member; or (c) is removed from office in terms of subsection (2). S
(2) The MEC for local government may remove from office a member of an appeal board but only on the grounds of misconduct, incapacity or incompetence.
(3) A decision to remove a member of an appeal board on the grounds of misconduct or incompetence must be based on a finding to that effect by an investigating tribunal appointed by the MEC. 10
(4) The MEC may suspend a member of an appeal board who is under investigation in terms of subsection (3).
Alternates
64. (1) The MEC for local government may appoint alternate members of an appeal board. 1s
(2) The person appointed as the alternate for the chairperson of an appeal board must be a person with legal qualifications and sufficient experience in the administration of justice.
(3) An alternate acts as a member when- (a) a member is absent, has recused himself or herself or is suspended; or 20 (b) the filling of a vacancy on the board is pending.
Meetings
65. (1) The chairperson of an appeal board decides when and where the board meets, but must promptly convene a meeting if a majority of the members of the board request him or her, in writing, to convene a board meeting at such time and such place set out in 25 the request.
(2) When hearing an appeal, an appeal board must sit in a municipality whose valuation roll is the subject of the appeal or review.
(3) If the chairperson is absent or not available, or if there is a vacancy in the office of chairperson, the other members of the appeal board must elect a member with 30 experience in the administration of justice or the alternate for the chairperson t preside at the meeting or to act as chairperson.
(4) Meetings of an appeal board are open to the public, but a board may adjourn in closed session when deliberating an issue before the board.
Administrative assistance 35
66. (1) An appeal board may request a municipality whose valuation roll is under consideration by the board to provide it with the necessary office accommodation and other administrative assistance, including staff for the board.
(2) A municipality whose valuation roll is under consideration - (a ) must comply with all reasonable requests in terms of subsection (1); and 40 (b) is liable for the costs of an appeal board, provided that the members of an
appeal board must be remunerated in accordance with section 61(3).
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Procedures
67. An appeal board may determine its internal procedures to dispose of appeals and reviews subject to any procedures that may be prescribed.
Quorums and decisions
68. (1) A majority of the members of an appeal board serving at any relevant time 5
(2) A matter before an appeal board is decided by a supporting vote of a majority of
(3) If on any matter before an appeal board there is an equality of votes, the member
constitutes a quorum for a meeting of the board.
the members of the board.
presiding at the meeting must exercise a casting vote in addition to that person’s vote as 10 a member.
Decisions affecting valuation rolls
69. (1) The chairperson of an appeal board and the valuer of the municipality must ensure that the valuation roll is adjusted or added to in accordance with the decisions taken by the appeal board. 15
(2) If an adjustment in the valuation of a property affects the amount due for rates payable on that property, section 55(2) must be applied.
(3) Where an addition has been made to the valuation roll as envisaged in subsection ( I ) , section 55 (3) must be applied.
Orders as to costs 20
70. (I) When an appeal board gives its decision, it may issue an order with regard to costs it regards as just and equitable.
(2) When making an order in terms of subsection (l), an appeal board may order any person whose appeal or opposition to an appeal is in bad faith or frivolous to compensate the municipality concerned in full or in part for costs incurred by the municipality in 25 connection with the appeal.
Committees of appeal boards
71. (1) The MEC for local government may, on request by an appeal board, authorise the board to establish one or more committees to assist it in the performance of its duties.
(2) When appointing members to a committee, an appeal board is not restricted to 30 members of the appeal board.
(3) An appeal board- ( a ) must determine the duties of a committee; (b) must appoint a chairperson and other members of a committee; (c) may authorise acommittee to co-opt advisory members within limits 35
(d) may remove a member of a committee from office at any time; and ( e ) may determine a committee’s procedure.
determined by the board;
(4) An appeal board which has established a committee may dissolve that committee at any time. 40
( 5 ) Sections 61 and 66 (2 ) (b), read with the necessary changes as the context may require, apply to the conditions of appointment of committee members who are not members of an appeal board.
Inspection of property
72. (1) Subject to any legislation that restricts or prohibits entry to any specific 45 property, a member of, or any other person authorised by, an appeal board may -
(a ) between 07:30 and 19:OO on any day except a Sunday or public holiday, enter any property that is the subject of an appeal or review; and
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(b) inspect that property for the purpose of the appeal or review. ( 2 ) When entering any property in terms of subsection (l), a member of, or any other
(a) must, on demand by a person on that property, produce proof of identity; and (b) may be accompanied by an interpreter or any other person whose assistance 5
person authorised by, an appeal board -
may reasonably be required in the circumstances. (3) The MEC for local government who established an appeal board must issue to a
member of, or any person authorised by, that appeal board an identity card in the prescribed format containing a photograph of that person.
Access to information 10
73. A member of, or any other person authorised by, an appeal board may- ( a ) require the owner, tenant or occupier of a property which is the subject of an
appeal or review, or the agent of the owner, to give the member or authorised person access to any document or information in possession of the owner, tenant, occupier or agent which the member or authorised person reasonably 1.5 requires for purpose of the appeal or review;
(b) make extracts from any such document or information; and (c) in writing require the owner, tenant or occupier of the property, or the agent of
the owner, to provide the member or authorised person either in writing or orally with particulars regarding the property which the member or authorised 20 person reasonably requires for purpose of the appeal or review.
Protection of information
74. (1) A member of, or any other person authorised by, an appeal board to inspect property may not disclose to any person any information obtained whilst exercising a power referred to in section 72 or 73, except- 25
(a ) within the scope of that person’s powers and duties in terms of this Act; (b) for the purpose of carrying out the provisions of this Act; (c) for the purpose of legal proceedings; or (d) in terms of a court order.
(2) Subsection (1) also applies to a person accompanying a member of an appeal 30 board or a person authorised by an appeal board in terms of section 72 (l), when entering any property in terms of that section.
Powers of appeal boards
75. (1) An appeal board may- (a) by notice, summon a person toa pearb fo e it- 35
(i) to give evidence; or (ii) to produce a document available to that person and specified in the
(b) call a person present at a meeting of an appeal board, whether summoned or summons;
not- 40 (i) to give evidence; or
(ii) to produce a document in that person’s custody; (c) administer an oath or solemn affirmation to that person; (d) question that person, or have that person questioned; or ( e ) retain a document produced in terms of paragraph (a)(ii) or (b)(ii) for a 45
reasonable period. (2) A person appearing before an appeal board, whether summoned or not, may at his
(3) (a) Aperson summoned to appear before an appeal board is entitled to witness fees
(b) Fees referred to in paragraph (a ) must be paid by the relevant municipality.
or her own expense be assisted by a legal representative.
paid to state witn sses in criminal proceedings in a court. 50
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(4) The law regarding privilege applicable to a witness summoned to give vidence in a criminal case in a court applies to the questioning of a person in terms of subsection (1).
Proceedings by, or against, appeal boards
76. (1) Legal proceedings by, or against, an appeal board may be instituted in the 5
( 2 ) Any costs awarded in any legal proceedings against an appeal board must be borne name of the board.
by the municipality concerned.
CHAPTER 8
UPDATING OF VALUATION ROLLS
General
10
77. A municipality must regularly, but at least once a year, update its valuation roll by causing-
(a ) a supplementary valuation roll to be prepared , if section 78 applies; or (b) the valuation roll to be amended, if section 79 applies. 15
Supplementary valuations
78. (1) A municipality must, whenever necessary, cause a supplementary valuation to be made in respect of any rateable property-
(a) incorrectly omitted from the valuation roll; (6 ) included in a municipality after the last general valuation; 20 (c) subdivided or consolidated after the last general valuation; (d) of which the market value has substantially increased or decreased for any
( e ) substantially incorrectly valued during the last general valuation; or ( f i that must be revalued for any other exceptional reason. 25
reason after the last general valuation;
(2) For the purposes of subsection (l), the provisions of Part 2 of Chapter 4 and, Chapters 5 , 6 and 7, read with the necessary changes as the context may require, are applicable, except that-
(a) a municipal valuer who prepared the valuation roll may be designated for the preparation and completion of the supplementary valuation roll; and 30
(b) the supplementary valuation roll takes effect on the first day of the month following the completion of the public inspection period required for the supplementary valuation roll in terms of section 49 (as read with this section), and remains valid for the duration of the municipality’s current valuation roll.
(3) Supplementary valuations must reflect the market value of properties determined 35 in accordance with-
(a ) market conditions that applied as at the date of valuation determined for
(b) any other applicable provisions of this Act. purposes of the municipality’s last general valuation; and
(4) Rates on a property based on the valuation of that property in a supplementary 40 valuation roll become payable with effect from -
( a ) the effective date of the supplementary roll, in the case of a property referred to in subsection (1) (a), (e) or (fi;
(b) the date on which the property was included in the municipality, in the case of a property referred to in subsection (1) (b); 45
( c ) the date on which the subdivision or consolidation of the property was registered in the Deeds Office, in the case of a property referred to in subsection (1) (c); or
(d) the date on which the event referred to in subsection (1) (d) has occurred.
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Amendment of valuation rolls
79. A municipality must regularly cause its valuation roll to be amended to reflect any changes to the particulars on the roll, except that changes to the roll in circumstances where section 78 applies may only be effected through a supplementary roll in accordance with that section.
CHAPTER 9
MISCELLANEOUS MATTERS
Condonation of non-compliance with time periods
80. (1) The MEC for local government in a province may, on good cause shown, and on such conditions as the MEC may impose, condone any non-compliance with a provision of this Act requiring any act to be done within a specified period or permitting any act to be done only within a specified period.
(2) Non-compliance with section 21, 31 or 32 may not be condoned in terms of subsection (I).
(3) The powers conferred in terms of this section on an MEC for local government may only be exercised within a framework as may be prescribed.
Provincial monitoring
81. ( I ) The MEC for local government in a province must monitor whether municipalities in the province comply with the provisions of this Act.
(2) If a municipality fails to comply with a provision of this Act, the MEC may take any appropriate steps to ensure compliance, including proposing an intervention by the provincial executive in terms of section 139 of the Constitution.
National monitoring and reporting
82. (1) The Minister may monitor, and from time to time investigate and issue a public report on, the effectiveness, consistency, uniformity and application of municipal valuations for rates purposes.
(2) The investigation may include- (a) studies of the ratio of valuations to sale prices; and (b) other appropriate statistical measures to establish the accuracy of the
valuations, including the relative treatment of higher value and lower value property.
(3) Investigations in terms of subsection (1) may be undertaken in respect of one or more or all municipalities.
Regulations
83. (1) The Minister may make regulations not inconsistent with this Act conceming-
(a) any matter that may be prescribed in terms of this Act; (bj the preparation, contents, adoption, and enforcement of a municipal rates
(cj the manner in which rates referred to in section 21 must be phased in and the
(d) the property register; (ej the form and contents of any document referred to in this Act, including any-
(i) declaration; (ii) authorisation;
(iii) valuation roll; (iv) objection to a valuation;
policy;
criteria that municipalities must take into account;
5
10
15
20
25
30
35
40
45
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(v) appeal against a decision of a municipal valuer; and (vi) notice;
If) the valuation and rating of public service infrastructure; (g) the procedure that must be followed in connection with-
(i) appeals to an appeal board against decisions of municipal valuers, 5 including the procedure to lodge, oppose, adjudicate and dispose of such appeals; and
(ii) reviews by an appeal board of decisions of municipal valuers;
condone non-compliance with a procedural requirement of this Act; I0 (h) the matters for which, or circumstances in which, an appeal board may
(i) the giving of reasons by an appeal board for its decisions; ( j ) the funding of appeal boards by municipalities; (k ) inquiries by investigating tribunals to establish alleged misconduct by, or
( I ) inquiries by municipalities to establish alleged misconduct by, or alleged 15
(m) fees payable for information or the issue of documents in terms of this Act;
(n) any matter which in the opinion of the Minister is necessary for the effective
(2) The Minister may by regulation in terms of subsection (1) declare a contravention
(3) Regulations in terms of subsection (1) may treat different categories of properties,
alleged incompetence of, members of appeal boards;
incompetence of, municipal valuers or assistant municipal valuers;
and
carrying out or furtherance of the objects of this Act. 20
of, or failure to comply with, any specific regulation an offence.
or different categories of owners of properties, differently.
Consultative processes befor promulgation of regulations 25
84. Before regulations in terms of section 83 are promulgated, the Minister must- (a) consult organised iocal government on the substance of those regulations; and (b) publish the draft regulations in the Government Gazette for public comment.
Copyright of valuation rolls and other data
85. Copyright of valuation rolls and other documents produced by municipal valuers, 30 assistant municipal valuers or data-collectors in the performance of their functions, and data collected by municipal valuers, assistant municipal valuers or data-collectors for the purpose of preparing valuation rolls, vests in the municipality concerned.
Offences
86. (1) A person is guilty of an offence if that person- 35 (a ) contravenes section 43( l ) (a) or (b), 44, 62( l)(b) or (c), or 74; ( b ) wilfully obstructs, hinders or threatens a valuer or a member of or person
authorised by an appeal board when the valuer, member or person performs a duty or exercises a power in terms of this Act;
(c) wilfully gives information in an objection in terms of section 50( l)(c) or in an 40 appeal in terms of section 48 which is false in any material respect;
(d) after having been summoned in terms of section 75 fails- (i) to be present at a meeting of an appeal board at the time and place
(ii) to remain present until excused; or 45 (iii) to produce a document specified in the summons;
specified in the summons;
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( e ) after having been called in terms of section 75 refuses- (i) to appear;
(ii) to answer any question, except where the answer might incriminate him or her; or
(iii) to produce a document in that person’s custody; or 5 (f) fails to comply with a request in terms of section 29(4), 42( 1) (a ) or (c) or 73
(a ) or (c), or in response to such request wilfully supplies false or incorrect information in any material respect.
(2) A valuer is guilty of an offence if that valuer is grossly negligent in the exercise of the functions of office set ut in section 34. 10
(3) A person convicted of an offence in terms of subsection (1) or (2) is liable to imprisonment not exceeding two years or to a fine as may be prescribed in applicable national legislation.
(4) A person convicted of an offence in terms of section 83(2) is liable to a fine or imprisonment not exceeding six m nths. 15
Application of Act when in conflict with other laws
87. This Act prevails in the event of any inconsistency between this Act and any other legislation regulating the levying of municipal rates.
Transitional arrangement: Valuation and rating under prior legislation
88. (1) Municipal valuations and property rating conducted before the commence- 20 ment of this Act by a municipality in an area in terms of legislation repealed by this Act, may, despite such repeal, continue to be conducted in terms of that legislation until the date on which the valuation roll covering that area prepared in terms of this Act takes effect in terms of section 32 (1).
“local authority”, “local council”, “metropolitan local council”, “rural council” or “other unit” of local government must -
(a ) in relation to an area situated within a metropolitan municipality, be regarded as refemng to that metropolitan municipality;
(b) in relation to an area situated within a local municipality, be regarded as 30 referring to that local municipality; and
(c) in relation to an area situated within a district management area, be regarded as referring to the district municipality in which that district management area falls.
(2) For purposes of subsection (l), any reference in such repealed legislation to a 25
‘Ikansitional arrangement: Use of existing valuation rolls and supplementary 35 valuation rolls
89. (1) Until it prepares a valuation roll in terms of this Act, a municipality may- (a) continue to use a valuation roll and supplementary valuation roll that was in
(b) levy rates against property values as shown on that roll or supplementary roll. 40 force in its area before the commencement of this Act; and
(2) If a municipality uses valuation rolls and supplementary valuation rolls in terms of subsection (1) that were prepared by different predecessor municipalities, the municipality may impose different rates based on the different rolls, so that the amount payable on similarly situated properties is more or less similar.
from that date any valuation roll or supplementary valuation roll that was in force before the commencement of this Act may not be used.
(3) This section lapses four years from the date of commencement of this Act, and 45
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‘I’ransitional arrangement: Existing rates policies
90. (1 j A rates policy adopted by a municipality before the commencement of his Act: including any revisions of such rates policy, continues to be of force after such commencement until the date on which the first valuation roll prepared by the municipality in terms of this Act takes effect in terms of section 32 (1). 5
(2) Any review of such rates policy after the commencement of this Act must take into account the aims of section 3 (3).
Transitional arrangement: Application of section 21
91. Section 21, read with section 88, also applies to rates levied on property referred to in section 21 in terms of legislation repealed by this Act, after the commencement of 10 this Act.
Transitional arrangement: Liability of bodies corporate of sectional title schemes
92. (1) Section 10 does not apply in respect of rates levied against a valuation roll or supplementary valuation roll prepared before the effective date of the first valuation roll prepared in terms of this Act. 15
(2) Section 25 does not affect the liability of a body corporate of a sectional title scheme to a municipality, nor f the owner of a sectional title unit to the body corporate, for property rates levied against a valuation roll or supplementary valuation roll prepared before the effective date of the first valuation roll prepared in terms of this Act.
Transitional arrangement: Special rating areas 20
93. (1) A special rating area established by a municipality in terms of legislation repealed by this Act, continues after the commencement of this Act for the period for which it was established or until the municipality has recovered any capital expenditure it. has incurred for the purpose of such special rating area, whichever period expires first.
( 1 j, be complied with as from one year after the commencement of this Act.
Amendment of section 115 of Act 32 of 2000
(2) Section 22 (3) (c) must, in relation to a special rating area referred to in subsection 25
94. Section 115 of the Municipal Systems Act is amended by the substitution in subsection (1 j for the words preceding paragraph (a ) of the following words:
*‘( 1) Any notice or other document that is served on a person in terms of this Act 30 or by a municipality in terms of any other legislation is regarded as having been served-”.
Amendment and repeal of legislation
95. The legislation specified in the Schedule is- (a) amended to the extent indicated in the third column of the Schedule; and 35 (b) repealed to the extent indicated in the third column of the Schedule.
Short title and commencement
96. This Act is called the Local Government: Municipal Property Rates Act, 2004, and comes into operation on a date to be determined by the President by proclamation in the Gazette. 40
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SCHEDULE
PART 1: LAWS OF THE FORMER PROVINCE OF THE CAPE OF GOOD HOPE
Sections 8 to 1
No. 3 of 1986) 22. Sections 1, 2 and 3 Divisional Councils Amendment Ordinance, 1986
(Ordinance No. 4 of 1986) 23.
The whole Proclamation No. 148 of 1993 28. The whole Proclamation No. 147 of 1993 27. The whole Valuation Ordinance, 1994 (Ordinance No. 26 of 1994) 26. Part 2 of Chapter 10 Municipal Act, 1987 (Act No. 17 of 1987), Ciskei 25. Part 2 of Chapter 8 Municipalities Act, 1979 (Act No. 25 of 1979) 24. The whole Valuation Act, 1978 (Act No. 30 of 1978), Transkei
~~
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PART 2: LAWS OF THE FORMER PROVINCE OF NATAL
20. Sections 2 and 3 Local Authorities Second Amendment Ordinance, 1979 (Ordinance No. 14 of 1979)
21. Sections 14, 15 and 16 Durban Extended Powers: Amendment Ordinance, 1979 (Ordinance No. 15 of 1979)
22. Section 3 Pinetown Extended Powers Ordinance, 1979 (Ordinance No. 17 of 1979)
23. Section 8 Local Authorities Fourth Amendment Ordinance, 1979 (Ordinance No. 24 of 1979)
24. Sections 2(1), 3 and 4 Local Authorities Amendment Ordinance, 1980 (Ordinance No. 8 of 1980)
25. Sections 6 and 7 Durban Extended Powers: Amendment Ordinance, 1980 (Ordinance No. 18 of 1980)
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No. Extent of amendment Title, No. and year of law or repeal
26. Sections 7 and 8 Local Authorities Second Amendment Ordinance, 1980 (Ordinance No. 27 of 1980)
27. Section 6 Durban Extended Powers: Amendment Ordinance, 1981 (Ordinance No. 15 of 1981)
28. Section 2 Local Authorities Second Amendment Ordinance, 1981 (Ordinance No. 20 of 1981)
29. Section 1 Local Authorities Amendment Ordinance, 1982 (Ordinance No. 3 of 1982)
30. Sections 7 to 11 Local Authorities Second Amendment Ordinance, 1982 (Ordinance No. 5 of 1982)
31. Section 4 Durban Extended Powers: Amendment Ordinance, 1982 (Ordinance No. 12 of 1982)
32. Section 4 Local Authorities Third Amendment Ordinance, 1982 (Ordinance No. 16 of 1982)
33. Sections 4 to 9 Local Authorities Amendment Ordinance, 1983 (Ordinance No. 5 of 1983)
34.
Section 1 Local Authorities Amendment Ordinance, 1984 35.
Section 12 Pietermaritzburg Loan and Extended Powers Ordinance, 1983 (Ordinance No. 8 of 1983)
(Ordinance No. 4 of 1984) 36. Section 1 Local Authorities Fourth Amendment Ordinance, 1984
(Ordinance No. 9 of 1984) 37.
Sections 35 to 38 'Local Authorities Amendment Ordinance, 1985 38.
Sections 5, 6(aj and (bj, and Durban Extended Powers: Amendment Ordinance, 1984 (Ordinance No. 14 of 1984) 7
(Ordinance No. 9 of 1985) 39. Paragraph X(ix) of the Penalties Amendment Ordinance, 1986 (Ordinance
No. 8 of 1986) Schedule 40. Sections 2, 3 and 4 Local Authorities Amendment Ordinance, 1986
(Ordinance No. 11 of 1986) 41.
Paragraph 6 Proclamation No. 6 of 1994 50. Paragraphs 5( l), 7 and 8(2) Proclamation No. 4 of 1994 49. Paragraphs 2 and 3 Proclamation No. 56 of 1992 48. Paragraphs 8( 1) and 9 to 12 Proclamation No. 55 of 1991 47. Paragraph 8 Proclamation No. 55 of 1990 46. The whole Proclamation No. 54 of 1990 45. Section 1 Proclamation No. 27 of 1990 44. Paragraphs 2, 3 and 4 Proclamation No. 12 of 1990 43. Paragraphs 5 to 8 Proclamation No. 16 of 1989 42. Paragraphs 29, 30 and 31 Proclamation No. 4 of 1988
132 No. 26357 GOVERNMENT GAZETIE, 17 MAY 2004
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PART 3: LAWS OF THE FORMER PROVINCE OF THE ORANGE FREE STATE
No. Extent of amendment Title, No. and year of law or repeal
1. Parts IV and V of Chapter XI Local Government Ordinance, 1962 (Ordinance No. 8 of 1962)
2. Section 2 Local Government Amendment Ordinance, 1963 (Ordinance No. 13 of 1963)
3. Sections 7 to 10 Local Government Amendment Ordinance, 1966 (Ordinance No. 15 of 1966)
4. Section 2 Local Government Amendment Ordinance, 1967 (Ordinance No. 6 of 1967)
5. Section 5 Local Government .4mendment Ordinance, 1968 (Ordinance No. 7 of 1968)
6. Section 1 Local Government Further Amendment Ordinance, 1968 (Ordinance No. 14 of 1968)
7. Section 10 Local Government Amendment Ordinance, 1971 (Ordinance No. 11 of 1971)
8. Section 14 Local Government Amendment Ordinance, 1972 (Ordinance No. 6 of 1972)
9. Section 3 Local Government Further Amendment Ordinance, 1974 (Ordinance No. 13 of 1974)
10. Section 4 Local Government Amendment Ordinance, 1975 (Ordinance No. 3 of 1975)
11. Sections 5 and 6 Local Government Further Amendment Ordinance, 1977 (Ordinance No. 9 of 1977)
12. Section 5 Local Government Third Amendment Ordinance, 1977 (Ordinance No. 14 of 1977)
13. Section 7 Local Government Amendment Ordinance, 1979 (Ordinance No. 2 of 1979)
14. Section 1 Local Government Amendment Ordinance, 1982 (Ordinance No. 7 of 1982)
15. Section 5 Local Government Further Amendment Ordinance, 1982 (Ordinance No. 14 of 1982)
16. Section 1 Local Government Amendment Ordinance, 1985 (Ordinance No. 6 of 1985)
17. Sections 7 and 8 Local Government Amendment Ordinance, 1986 (Ordinance No. 19 of 1986)
18.
Paragraph 1 Proclamation No. 15 of 1996 23. Paragraphs 7 to 25 Proclamation No. 136 of 1993 :22. Paragraph 12 Proclamation No. 90 of 1993 21. Paragraphs 6 and 7 Proclamation No. 86 of 1991 :20. Paragraphs 3 and 4 Proclamation No. 5 of 1991 19. Paragraphs 40(b) and 43 Proclamation No. 18 of 1988
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PART 4: LAWS OF THE FORMER PROVINCE OF THE TRANSVAAL
No. Extent of amendment Title, No. and year of law or repeal
1. Section 50 Local Government Ordinance, 1939 (Ordinance No. 17 of 1939)
2. Sections 26bis and 29 Transvaal Board for the Development of Peri-Urban Ar- eas Ordinance, 1943 (Ordinance No. 20 of 1943)
3. Section 3 Local Government Amendment Ordinance, 1944 (Ordinance No. 19 of 1944)
4. Section 2 Pen-Urban Areas Health Board Amendment Ordinance, 1945 (Ordinance No. 21 of 1945)
5 . Section 10 Pen-Urban Areas Health Board Amendment Ordinance, 1948 (Ordinance No. 24 of 1948)
6. Section 3 Local Government Amendment Ordinance, 1965 (Ordinance No. 24 of 1965)
7. Section 5 Local Government Amendment Ordinance, 1966 (Ordinance No. 24 of 1966)
8. Section 4 Local Government Amendment Ordinance, 1968 (Ordinance No. 15 of 1968)
9. Section 4 Transvaal Board for the Development of Pen-Urban Ar- eas Health Board Amendment Ordinance, 1970 (Ordinance No. 9 of 1970)
10. Section 2 Transvaal Board for the Development of Pen-Urban Ar- eas Health Board Amendment Ordinance, 1976 (Ordinance No. 12 of 1976)
11. The whole, except section 48 Local Authorities Rating Ordinance, 1977 (Ordinance No. I 1 of 1977)
12. The whole Local Authorities Rating Amendment Ordinance, 1978 (Ordinance No. 10 of 1978)
13. Sections 4 and 12 Local Government Amendment Ordinance, 1978 (Ordinance No. 16 of 1978)
14. Section 2 Local Government Amendment Ordinance, 1980 (Ordinance No. 13 of 1980)
15. The whole Local Authorities Rating Amendment Ordinance, 1980 (Ordinance No. 15 of 1980)
16. The whole Local Authorities Rating Amendment Ordinance, 1981 (Ordinance No. 7 of 1981)
17. The whole Local Authorities Rating Amendment Ordinance, 1982 (Ordinance No. 7 of 1982)
18. The whole Local Authorities Rating Amendment Ordinance, 1983 (Ordinance No. 10 of 1983)
19. The whole Local Authorities Rating Amendment Ordinance, 1984 (Ordinance No.12 of 1984)
20. The whole Local Authorities Rating Amendment Ordinance, 1985 (Ordinance No. 17 of 1985)
21. 22.
The whole Proclamation No. 46 of 1990
The whole Proclamation No. 17 of 1994 23. Paragraph 5 Proclamation No. 3 of 1992
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MUNICIPAL. PROPERTY RATES ACT, 2004
PART 5: OTHER LAWS
No. Extent of amendment Title, No. and year of law or repeal
1. Sections 6 and 7 Local Authorities Affairs Amendment Act, 1991 (Act No. 2. The whole Rating of State Property Act, 1984 (Act No. 79 of 1984)
127 of 1991)
Ordinance of 1974, 1994 (Law No. 1 of 1994) 3.
Section 2 Western Cape Law on the Amendment of the Divisional 4.
Section 2 Western Cape Law on the Amendment of the Municipal
Councils Ordinance of 1976, 1994 (Law No. 2 of 1994) 5. The whole Local Government Amendment Act, 1996 (Act No. 8 of
1996), Gauteng 6. Section 1 Local Government Ordinance Amendment Act, 1997 (Act
No. 3 of 1997), Free State 7. The whole Local Authorities Rating Amendment Act, 1997 (Act No.
5 of 1997), Gauteng