19 February 2004
Madam Speaker
Properties will first of all have to be valued by the municipalities before rates will become applicable to home owners. And this is not going to happen overnight.
Municipalities need to capacitate themselves as to what this Bill is saying. They will have 4 years to do their valuation rolls, as a first step towards generating revenue through Property Rates.
In the event of property owners being dissatisfied with the value of their property, they can first of all raise objections with the municipal valuer. And should they not succeed, they then have access to the "Valuation Appeal Board", which is specifically established to hear appeals from disgruntled owners.
The board will no doubt be sympathetic to appeals lodged with them, and will do everything in their power to give a just hearing, and endeavour to make a fair judgement on each case brought before it.
The Board will consist of people who have to necessary expertise to hear appeals.
The Chairperson for instance must be a person with legal qualifications and sufficient experience in the administration of justice.
He will be assisted by 2 to 4 other members with sufficient knowledge of or experience in the valuation of property.
The conduct of Members makes it clear that they must perform their duties of office in good faith and without fear, favour or prejudice.
Their functions will be:
So, once the Appeal Board has reached a decision on an appeal brought before it, 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 decision taken by the Board.
A) If an adjustment in the valuation of a property affects the amount due for rates payable on that property, to the municipal managers must - calculate -
B) But if an addition has been made to a valuation roll, the amount payable plus interest will be recovered from the person liable for the payment of the rates.
Of importance here is to note that the 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 the costs incurred by the municipality in connection with the appeal.
Madam Speaker we believe that there is wide agreement on this Bill, which is a very balanced one indeed. Should anyone be discontented with this final product, and we believe there are then these would be people who want to see a "Free market system" in place, but who detest "market value" on their property for valuation purposes.
So I short, they do not want to pay the applicable rates due by them. What they do want is a land value, on a property, and thus paying less in terms of rates.
So what we make of it is that they do not want to see municipalities forging ahead with their programme of delivery, with this much needed Revenue generated through the implementation of this piece of legislation.
The fact of the matter is that without this important source of Revenue the IDP is going to remain a "wish list" for many municipalities.
It therefore goes without saying that Revenue generated from the affluent communities will be utilized for services in the poorer areas. There is no other way in which we can eradicate the inequalities in society. The system allows for cross-subsidisation between wealthy and poor areas, so as to build stable communities as well as redress past imbalances. - The tables are now turned.
The days when Grassy Park and Mitchell's Plain had to subsidize those residing on the Atlantic Seaboard is past. We have now entered a new era, where people must pay whatever is due by them. There are ways of lodging objections, and appeals to be heard, but South Africa now need to move to another level of development in pushing back the frontiers of poverty - This is the right thing to do. And now is the time to do it.
For those who are saying that Property Rates will be levied on Traditional Authority areas, we are saying that that is "illogically inexact".
The Portfolio Committee, for a number of reasons does not believe that the levying of Property Rates in Traditional Authority areas is on the agnda for a long time to come.
The Bill is very specific on the effect of rates on the poor and on charitable and welfare organisations, and therefore requires the municipality to quantify the costs and benefits of all exemptions, rebates and reductions to the municipality.
An important objective of the Bill is to: