In terms of the Municipal Property Rates Act 6 of 2004, property rates are calculated on the value of the land and of any improvements or buildings. This value is based on the property's market value – the price you would realistically get for a property in the open market, between a willing buyer and a willing seller. For more information see Valuations.
Using this value as a base, a comparative value of all properties in a neighbourhood can be calculated. This assessed value is called the municipal value and is used by the City for the levying of property rates.
Different rates are levied against different categories of property. Properties are grouped into categories based on zoning; for example, domestic properties and sectional title properties are generally residential, factories and warehouses are business, and schools are education. Churches normally do not pay rates.
Step one:
Get your valuation from the City's website : www.joburg.org.za
Valuation Administration
66 Jorissen Street
Jorissen Place
1st Floor, East Wing
Residential Property
Once you have your valuation, termed the market value, deduct R300 000 to arrive at the rateable value. Multiply the rate in the Rand (R0,008791) by the rateable value. This will give you your annual rates. Divide this amount by 12 to get your monthly rates.
The City will not levy a rate on the first value up to R300 000 on the market value as per the valuation roll of residential properties as follows:
On the first R15,000 on the bases set out in Section 17(1) of the MPRA and on the balance of the market value up to R285 000 in respect of residential properties, provided that the council may from time to time during its annual budget contemplated in Section 12(2) of the Act determine as threshold, the amount to be deducted from the market value of residential properties, as a result of which rates will only be determined by the balance of the market value of such properties after deduction of the threshold amount.
All other categories of property
Once you have got your valuation, multiply the rate in the Rand tariff for your type of property as per the property categories below. This will give you your annual rates. Divide this amount by 12 to get your monthly rates.
General conditions:
The first R300 000 of all residential property values is exempt from rating.
If a customer owns multiple residential properties, the exemption applies to only one property. The remaining properties owned will not be exempted.
Properties valued at less than R300 000 don't have property rates levied against them.
