Legislation requires municipalities to undertake a General Valuation (GV) every four years. The City of Cape Town initiated this process last year and the GV Roll will be ready for property owners in the metro to inspect from 21 February 2023. Objections must be submitted by no later than 30 April 2023. The GV determines what contributions property owners make to the rates account. Rates are used for shared services such as fire services, libraries, recreational areas and clinics. New rates will be implemented from 1 July 2023. Please see: www.capetown.gov.za/propertyvaluations

‘Property valuations are determined by professional registered valuers based on the market value of properties at a certain date. For GV2022, the valuation date is 1 July 2022. The accurate and fair market value is in most cases determined in terms of comparable sales information around the valuation date. We see many examples of estate agents advertising free valuations of properties in light of the GV; however, the GV is already based on market value of comparable properties, as required by legislation. Any reference to separate “municipal values” is incorrect.

909 000 rateable properties

‘We have approximately 909 000 rateable properties in the metro. Rates are used for shared services such as fire services, libraries, recreational areas, parks and clinics. Every year, the City tallies up what income is required for shared services as included in the Integrated Development Plan. The valuation of a property determines how much each property owner contributes to the required amount. For instance, in the 2023/24 financial year, the required rates amount to pay for the shared services will be approximately R11,8 billion. No profit is made from rates income. As a well-run metro, we ensure that the money is used as earmarked. We have received unqualified audits since 2006; a mark of our commitment to prudent financial management and responsible governance. Comparatively, Cape Town’s average rates are very competitive and among the lowest in the country.

‘As always, we encourage residents who qualify for rates and service relief to apply to the City for assistance. We have a basket of help available to the value of R4,7 billion,’ said the City’s Mayoral Committee Member for Finance, Councillor Siseko Mbandezi.

New property ratings categories

The City intends to include the establishment of the following two new property ratings categories in both the Valuation Roll and the proposed Rates Policy 2023/2024: Miscellaneous Properties and Properties owned by a religious community and used for specified religious purposes.

The property rating categories, which are determined by the observed use of the property, will thus be:

Residential properties;

Business and commercial properties;

Industrial properties;

Agricultural properties – any agricultural property not used for bona fide farming will not fall within this category;

Mining properties;

Properties owned by an organ of state and used for public service purposes.

Public Service Infrastructure properties;

Properties owned by Public Benefit Organisations and used for specified public benefit activities;

Properties used for multiple purposes

Vacant land;

Cemeteries and crematoria;

Properties owned by an organisation – not for profit and used for animal shelters;

Properties owned by an organisation – not for profit and used as an early childhood development facility;

Properties owned by an organisation – not for profit and used for youth development;

Properties owned by an organisation – not for profit and used as accommodation for the vulnerable;

Properties owned by an organisation – not for profit and used as a local community museum;

Properties owned by an organisation – not for profit and used for an old age home;

Properties owned by an organisation – not for profit and used exclusively for amateur sport;

Properties owned by a Social Housing Regulatory Authority accredited Social Housing Institution and used for social housing;

Properties owned by war veterans' associations and used for the welfare of war veterans;

Nature conservation land;

Properties owned by a religious community and used for specified religious purposes.

Miscellaneous property category.

Remember

Whether residents qualify for indigent support or indigent rates relief depends on monthly household income. Currently, if the total household income is R7 500 or less per month, residents could qualify for a discount on water, sewerage, electricity, waste collection and property rates.

Residents may qualify for indigent support if they:

• are a homeowner

• earn R7 500 or less per month

• own only one property

• are the full-time occupant of the home

• use the home mainly for residential purposes

• are a child who lives in the home of a parent who has passed away

• received the house in a divorce settlement

• depend on a pension or a social grant for their livelihood

Applicants will need:

• proof of identification (ID book/card or passport)

• a bank statement for the last three months or a sworn affidavit stating that they do not have a bank account

• a bond statement for the last three months or a sworn affidavit stating that they do not have a bond account

• a copy of the estate documents if the applicant has inherited his or her house

If residents are employed, they must also include:

• latest salary/wage pay slip or a letter from an employer stating their income

• a sworn affidavit if they are self-employed stating how much is earned per month

• proof of a disability grant, maintenance grant or pension is received

If residents are unemployed, they must include the following in the application:

• a sworn affidavit stating that they are unemployed

• a sworn affidavit stating that they have no other source of income

Useful contacts and information:

For rates or services relief

• Visit: https://www.capetown.gov.za/City-Connect/Apply/Financial-relief-and-rebates/Individuals/Apply-for-indigent-rates-relief or a City customer office.

• Email: indigent.relief@capetown.gov.za

Pensioner rates relief

• Pensioners 60 years or older and people who receive social grants amounting to no more than R17 500 may qualify for a rates rebate of between 10% and 100%. They are invited to go to the nearest City customer care office or send an email to rates.rebate@capetown.gov.za

• For more information on how to apply for pensioner support: https://www.capetown.gov.za/City-Connect/Apply/Financial-relief-and-rebates/Individuals/Apply-for-senior-citizen-support

For payment arrangements

• Visit: https://www.capetown.gov.za/City-Connect/Pay/Municipal-accounts/Electricity/arrange-a-payment-plan-for-debt-collection

• Email: Payment.arrangements@capetown.gov.za

For a list of the City’s Cash Offices and Walk-in Centres, please visit: https://www.capetown.gov.za/Explore%20and%20enjoy/See-all-City-facilities/Our-service-facilities/Walk-in%20centres

Source: City Of Cape Town