Increases in property rates in Johannesburg will this year be balanced by rebates for low-income pensioners, and a wide range of welfare and charitable organisations and sports clubs.
An average base increase of 5% in property rates was announced in the City’s 2014 Budget delivered by the Member of the Mayoral Committee for Finance, Councillor Geoffrey Makhubo today.
The City’s policy on property rates provides for a number of rebates and exemptions, MMC Makhubo said:
•The first R200 000 of the value of all residential properties has been exempted from rating;
•There has been a reduction in the ratio between residential and business rates from 1:3 to 1:2.8;
•Pensioner owners with a gross monthly income of less than R7 000 and property values below R2-million receive a 100% rebate. Where their incomes are between R7 000 and R12 000, such pensioners qualify for a 50% rebate;
•The residential sectional title rebate has dropped from 15% to 10%;
•100% rebates are given to child-headed households and organisations responsible for animal protection; private sports clubs receive a 40% rebate, heritage sites 20% while 50% rebates are applicable on vacant land and property owned by organisations in terms of the Housing Development Scheme for Retired Persons Act.
A rebate shall be granted for new building developments in identified Corridors of Freedom. The rebate will be applied as follows:
•Shall be a quarter of rates as per the category of land for period not exceeding two years during construction phase
•Shall be granted at half the rate as per the category of property during the first year of operation.
•The property owner shall be charged full rates as per the category of property from the second year of operation onwards.
•The developer must apply to Council for these rebates.
2014 Budget Speech
2014 Media Briefing Statement