Municipalities to comply with Sections 48 and 49 of the Municipal Property Rates Act 6 of 2004, as Amended
In the matter of Astirshell No. 14 CC & Others v Victor Khanye Local Municipality & Others, a review application was brough to the High Court to challenge the sharp increases in municipal property valuations imposed by the Victor Khanye Local Municipality for the 2019–2024 General Valuation Roll. The findings of the High Court are in […]
Clearance Certificate to be Issued by Municipalities
In the matter of City of Tshwane Metropolitan Municipality v Uniqon Wonings (Pty) Ltd, the Supreme Court of Appeal (SCA) held that until an erf is transferred by a township owner it does not exist as a separate entity and is thus not rateable. The SCA held, however, that this view ignored generally accepted rating […]
Subdivision of Agricultural Land
In the matter between Tridevco (Pty) Ltd and Another v Minister of Agriculture, Land Reform and Rural Development and Others, Tridevco sought to develop property for mixed-use purposes, but the Minister refused their application for the subdivision of the property, arguing that the land was high-potential agricultural land essential for food security of the country. Click here […]
Jurisdiction of the Valuation Appeal Board on Category Change
Section 52 of the Municipal Property Rates Act, 6 of 2004, as Amended, provides for a compulsory review of the decision of the municipal valuer after objection, by the Valuation Appeal Board (VAB) if the value of the property changed by more than 10% upwards or downwards. The section doen not address the change in […]
Categorization of Residential Properties as Business Commercial
In a recent High Court case, The City of Johannesburg Metropolitan Municipality (the City) and its Municipal Valuer sought to review and set aside a decision made by the Valuation Appeal Board on 9 December 2021. The decision in question reclassified 24 units in Melrose Square on Oaks from “sectional title business” to “sectional title residential” for rating purposes, effective 1 July […]
Categorization of Educational Institutions
Categories of properties will, according to the relevant Municipality’s rates policy tariffs, determine the rate to be paid as property rates. The categorization of an educational institution was challenged in the Free State Division of the High Court. Click here to read the judgement
Categorization of Property in Accordance with the Relevant Rates Policy
According to the Municipal Property Rates Act, 6 of 2004, each municipality must adopt a rates policy which must also be revised annually. Categorization of property is determined by the rates policy of each municipality. A decision by the Valuation Appeal Board on a matter of categorization of property held under a Certificate of Registered […]
Importance of the appropriate method of valuation when determining the market value of a property
In the recent matter of Central University of Technology, Free State v Mangaung Metropolitan Municipality and Others, the High Court once again drew attention to the importance of section 45(1) of the Municipal Property Rates Act 6 of 2004 (MPRA). It was determined that property must be valued in accordance with generally recognised valuation practices, […]
The Legality of the Rate Ratio
In the recent matter of Ekapa Minerals Pty v Sol Plaatjies Municipality an application was brought before The High Court of South Africa (Northern Cape Division, Kimberley). The application concerns the legality of six decisions taken by the Council of the Sol Plaatje Local Municipality (the first respondent) to set a property rate ration of […]
Categorisation of properties (based on different uses)
In the matter of Lake Eland Game Reserve CC v Ray Nkonyeni Municipality, the High Court had to determine, amongst other things, whether it is justified to categorise an entire property as “commercial” where the property is used extensively for business purposes. The background facts of the matter are briefly as follows: The respondent (Ray Nkonyeni Municipality) […]