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010-04-06: Some relief for residential property owners  
  
The City of Johannesburg unveiled its 2010/2011 draft amendments to the Rates Policy at the City’s Stakeholder Summit over the weekend. The changes, which are part of an annual review process determined by the Local Government: Municipal Property Rates Act 6 of 2004, mostly brings relief to residential property owners. 

These amendments are now on the City’s website www.joburg.org.za and the public is encouraged to make written comments to RatesComment@joburg.org.zaThis e-mail address is being protected from spambots. You need JavaScript enabled to view it between 1 April 2010 and 3 May 2010. These can also be faxed to 011 727 0189 or posted or dropped off at Jorissen Place, 66 Jorissen Street Braamfontein 2000. 

1. PRIVATELY OWNED PROPERTY OF A PUBLIC SERVICE NATURE
This is a new category. It refers to guardhouses, attenuation dams, private roadways in a complex and similar structures. Currently these are billed as vacant land, while the land is not vacant. The proposal is to bill these similar to public service infrastructure. 

Public service infrastructure  is currently non rateable but from 1 July 2010/2011 it will be 25% of the residential tariff as published in the Government Gazette Notice Number R.363 of 27 March 2010. This is a relief to property owners as they are currently paying the vacant tariff which is four times the residential tariff but from 1 July 2010, they will be paying 25% of the residential tariff. 

2. PRIVATE OPEN SPACE
This is a new category. This refers to recreational facilities in residential complexes. They are currently billed as vacant land while the land is not vacant. These will be now also be rated at a residential tariff but the R150 000 threshold will not apply. This brings relief to property owners because they will be paying the residential tariff which is lower than the vacant tariff. 

3. PROPERTY USED FOR MULTIPLE PURPOSES
Properties zoned institutional pay commercial rates even if the property is used for residential purposes. The proposed change will allow property owners to pay residential tariff even if the property is zoned institutional provided that the property is used primarily for residential purposes. This brings further relief to property owners, as the residential tariff is lower than the commercial tariff. 

4. REGISTERED SOCIAL LANDLORD PILOT SCHEME
This will apply to properties owned by individuals or entities designated as a Registered Social Landlord under the prevailing Registered Social Landlord Policy of the City of Johannesburg. 

Presently, property owners in the inner city qualify for a 40% rebate in cases where property has been zoned commercial and is rated accordingly, but is used for residential purposes, provided that 80% of the floor space is used for residential accommodation. The new proposal is a further rebate where the entity is:

   Designated as a Registered Social Landlord 
   Registered as a Non Profit Organization in terms of Section 21 of the Income Tax Act, and
   Registered as a Public Benefit Organization under Section 30 of the Income Tax Act 

The public service infrastructure will be 25% of the residential tariff from 1 July 2010, and no longer be 0 as issued by the Budget office (to give effect to Government Gazette Notice Number R.363 of 27 March 2010). 

5. CERTIFICATE OF OCCUPANCY: BACKDATED REQUEST
Presently, the vacant land tariff is charged where the property owner has not provided a certificate of occupancy even if it is a residential property. Where the certificate is produced, residential rating is charged backdated to the date of the certificate of occupancy being issued. 

The proposed amendment is to curtail the period of the backdated adjustment to the commencing date of the prevailing valuation roll. This implies that any retrospective adjustment will be backdated no further than the date of the prevailing General Valuation Roll.

Ends
“Joburg, a City where community development, personal growth and social mobility are enhanced so that challenges of poverty, vulnerability, inequality and social exclusion are fundamentally addressed”.

Issued on behalf of Councillor Parks Tau
Member of the Mayoral Committee for Finance.

By 

Virgil James
Spokesperson 

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