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 category.
The jurisdiction of the VAB to review the category as well was a matter of dispute in the case of City of Johannesburg & Municipal Valuer v Valuation Appeal Board & Malvern Plaza (Pty) Ltd.
Reason for the Application
The applicants (City of Johannesburg and its Municipal Valuer) sought a declaratory order and review of the Valuation Appeal Board’s (VAB) decision, arguing that:
- The VAB should have jurisdiction under section 52 of the Municipal Property Rates Act to review not only property value but also category (e.g., “Residential” vs “Business and Commercial”).
- The VAB had previously refused to reconsider the category of Malvern Plaza’s property, claiming it lacked jurisdiction under section 52.
- The applicants wanted the 2020 court order (which remitted the matter to the VAB) to be varied, asserting that the VAB misunderstood its powers.
Ruling
Judge Twala dismissed the application, holding that:
- Section 52 only allows the VAB to review valuation changes exceeding 10%, not category changes.
- The VAB acted within its powers by refusing to reconsider the category.
- The 2020 court order did not confer new powers on the VAB beyond what the legislation allows.
- The applicants had acquiesced in the earlier decision and failed to appeal or act within the prescribed time (30 days).
- The court was functus officio (i.e., had no power to vary the previous final judgment).
- The application was dismissed with costs, jointly and severally.
