Rate payers to benefit from huge increase in rates base for City
The total market value of the approximately 826 000 properties in Johannesburg exceed R600 billion according to the draft Valuation Roll just made public for inspection and comment by the City's Valuation Services Directorate.
According to the Director: Valuation Services Werner Sarvari says when the City's last General Valuation Roll was compiled in 2001, the value then was R49,9 billion.
"The good news is that as a result of the huge increase in the rates base the public can expect to see a significant decrease in the rate in the Rand which is used in a specific formula together with the property value to determine the actual rates payable by individual property owners," says Sarvari.
The rate in the Rand to be used in determining the rates payable for 2008/9 will only be known around March or April next year once the draft Valuation Roll has been finalised and after the draft Rates Policy has been approved. The tariff is determined when the value of the property is multiplied by the tariff to determine the annual rate payable. This is then divided into 12 monthly installments to get the monthly rate payable. Rebates applicable (which will be determined by the final Rates Policy) are applied to the formula when determining the annual rate.
"Obviously there is a significant difference in that in 2001 the Valuation Roll was based on site value (land value) only while the current roll is based on market value (land value and improvements)," he says.
Sectional Title properties, of which there are an estimated 155 000 in Johannesburg, have a total value of approximately R87,1 billion.
Earlier this week, the City made the draft 2008 General Valuation Roll available for comment and inspection by the public. It can be accessed by logging onto the City's website and following the instructions for checking municipal property values.
The roll has been made available ahead of the formal objection period (planned for around February 2008 to April 2008) in order that as many issues as possible can be sorted out before the draft Roll is finalised.
"We have had a phenomenal response in the few days that the roll has been available for inspection. Many thousands of people have already been online to check their property values and the email queries (which can be sent to valuationenquiries@joburg.org.za) are streaming in;" says Sarvari.
The City has used several methods to establish the value of property. "We analyse property sales and we collect and update detailed information for every property in the City continually to ensure that similar property types are valued consistently within the market area," Sarvari says.
In addition to sales, the City's valuers regularly analyse additional property information including title deeds, building plans, on-site inspections and communication with owners and tenants; and finally through income and expense information where a property is an income producing property," he says.
Property owners who have checked their current valuation details and believe that it is incorrect can immediately report it to the Valuations Services Directorate by email, phone or fax.
"We must have as much information as possible in order to follow up the query. We at least need the township name and extension, and the stand number together with the customer's name and contact details," says Sarvari.
The query is then investigated by firstly checking that the calculations used by the Directorate are correct. "We then go back and check comparable sales in the area and, if necessary, will send a valuer to the property to re-inspect it. If we deem that an adjustment is required, we do it immediately."
The contact details for queries and issues regarding the draft General Valuation Roll are:
Email: valuationenquiries@joburg.org.za
Phone: (011) 375 5555 and select the option for Rates Policy and Valuation Roll
