2000-05-31

1. In this Act, unless the context otherwise indicates –

"category", in relation to property, means a category of property determined in terms of section 3;

"date of valuation" means the date determined by a municipality in terms of section [16] 22 (1);

"existing rateable property" means property on which a rate was levied before 30 June 1999;

"financial year" means the period starting 1 July in a year to 30 June the next year;

"Gazette" means the national Government Gazette;

"improved value", in relation to property, means the value of property including improvements;

"improvements", in relation to property, means land and any building attached to land, whether removable or not, or any other immovable structure in, on or under the land or pertaining to a right in property, excluding –

"land reform beneficiary", in relation to a property, means a person who–

(a) acquired the property through the Provision of Certain Land for Settlement and

Assistance Act, 1993 (Act No. 126 of 1993), or the Restitution of Land Rights

Act, 1994 (Act No. 22 of 1994); or

(b) holds the property subject to the Communal Property Associations Act, 1996

(Act No. 28 of 1996);

"MEC for local government" means the member of the Executive Council of a province responsible for local government in the province;

"Minister" means the Cabinet member responsible for local government;

"municipal council" or "council" means a municipal council referred to in section 157 of the Constitution;

"municipality" –

"new rateable property" means property on which no property tax was levied before 30 June 1999;

"non-beneficial owner", in relation to property, means an owner of property which is –

(a) held by the owner in trust for another or the general public;

(b) utilised in terms of a system of communal land tenure; or

(c) earmarked for disposal in terms of the Restitution of Land Rights Act, 1994 (Act No. 22 of 1994);

"occupier", in relation to property, means a person in actual occupation of property without regard to the title under which that person occupies the property;

"organ of state" an organ of state as defined in section 239 of the Constitution;

"owner" –

"participation quota" means a participation quota as defined in the Sectional Titles Act, 1986 (Act No. 95 of 1986);

"phasing in", in relation to a rate on property, means a scheme whereby only a percentage of the rate applicable to the property for a particular year is payable during that year, which progresses to higher percentages of the rate applicable for the following years until the full rate is payable, and "phase in" has a corresponding meaning;

"prescribe" means prescribe by regulation in terms of section 65;

"property" means –

(a) any immovable property registered under separate title; or

(b) any right registered against property mentioned in paragraph (a);

5. telecommunication installations, lines, or other infrastructure forming part of a national telecommunications system; or
6. airports and harbours serving a bigger area than a single municipality;

"rate" means a municipal rate or tax on property as envisaged in section 229 (1) (a) of the Constitution;

"register"–

"sectional title scheme" means a development scheme as defined in the Sectional Titles Act, 1986;

"sectional title unit" means a unit as defined in the Sectional Titles Act , 1986;

"site value", in relation to property, means the value of the property excluding the value of improvements;

"this Act" includes any regulations made in terms of section 65.

2. (1) A municipality may, subject to the other provisions of this Act, levy a rate

on –

(a) all property in its municipal area;

(c) any specific category or categories of property in its municipal area.

(2) Different rates may be levied for different categories of property.

3. (1) A municipality may determine categories of property for the purposes of this Act according to –

(a) the use of the property;

(b) the status of the property; or

(c) the area in which the property is situated.

(2) Separate categories may be determined for properties falling within paragraph (a) of the definition of "property" and for properties falling within paragraph (b) of the definition.

(3) Categories of property that may be determined include the following categories:

(a) residential properties;

(b) industrial properties;

(c) commercial properties;

(d) properties of which national or provincial organs of state are the owners;

(f) farm land used for-

(i) agricultural purposes;

(ii) other commercial purposes; or

(iii) non-commercial purposes;

(g) unused farmland;

(h) conservation areas, including –

(i) national or provincial parks; or

(ii) wilderniss or ecologically protected areas;

(i) small holdings used for-

(i) agricultural purposes;

(ii) residential purposes;

(iii) industrial or commercial purposes; or

(iv) general purposes;

(j) privately owned towns serviced by the owner;

(k) formal and non-formal settlements;

(l) tribal and other forms of communal land;

(m) land –

(i) acquired through the Provision of Certain Land for Settlement and Assistance

(n) land on which national monuments are proclaimed.

4. (1) A municipality may not –

1. levy a rate mentioned in section 5 on public infrastructure; or
2. in any other way exercise its power to levy rates on property in a way that would materially and unreasonably prejudice national economic policies, economic activities across its boundaries, or the national mobility of goods , services, capital or labour.

5. (1) A rate levied on property must be –

(2) A rate is levied on the improved value of property may be composed of separate amounts on the site value of the property and the value of the improvements.

(3) (a) The Minister, with the concurrence of the Minister of Finance, may by notice in the Gazette set a limit on –

(i) the amount of the rate that municipalities may levy on property; or

(ii) the percentage by which a rate on property may be increased annually.

(b) Different limits may be set in terms of paragraph (a) for–

(ii) different categories of property.

6. (1) A municipality may –

(a) define an area within the municipality as a special rating district; and

[(2)](4) Subsection (1) does not preclude a municipality from using its resources derived from sources other than an additional rate to fund improvements anywhere in the municipality, including in a special rating district.

7. A rate may not be levied by a municipality for more than one financial year at a time, except with the approval of the MEC for local government in the province.

8. A rate takes effect on a date determined by the municipality which may not be a date before the date on which the municipality’s valuation roll takes effect.

9. (1) A municipality may, subject to subsection (3), phase in, over a period not exceeding three financial years a rate levied by it on certain property or a category of property that –

(a) was previously not subject to a rate;

(b) was previously exempted or excluded from a rate;

(c) was previously granted a rebate on a rate;

1. The application of this section may be regulated by regulation in terms of

section 65.

(3) At the request of a municipality, the MEC for local government in the province may extend the phasing in period referred to in subsection (1) to a period which together with the initial period does not exceed six financial years if -

(b) the property or category of property is or consists of unsurveyed rural land;

(3) A rate levied on new rateable property or on property of which the owner is a

land reform beneficiary may be no more than the rate levied on similar property or category of property in the municipality, if any.

(4) The MEC for local government in the province may extend the phasing in

period referred to in subsection (1) to a period which together with the initial period does not exceed six financial years.

12. (1) A municipality must draw up and maintain a register of properties situated within the municipality, consisting of a Part A and a Part B.

(2) Part A of the register consists of the certified valuation roll.

(3) Part B of the register –

(a) consists of lists of properties in respect of which –

(ii) no rate is levied;

(iii) a rate is to be phased in in terms of section 9 or 10;

(iv) a rebate on or a reduction in the rate is of force; and

(v) a grant-in-aid in lieu of a rate is of force; and

(i) the registered or other description of the property;

(ii) the category in which the property falls;

(iii) the address of the property;

(iv) the extent of the land area of the property;

(v) the name of the owner;

(vi) the postal address of the owner; and

(6) All exemptions, rebates, reductions and grants-in-aid referred to in subsection (3) must be reflected as expenditure in the annual budget of the municipality.

13. (1) A municipality must –

(ii) exempts or excludes property or property of a specific category from a rate;

(iii) gives rebates or reductions in respect of a rate; or

(iv) increases rates;

(c) take into account the effect of rates on the poor; and

[58] 15. (1) A rate levied by a municipality on property must be paid by the owner of the property subject to Chapter 9 of the Local Government: Municipal Systems Act, 2000 [(Act No. of 2000)].

(2) Joint owners of property are jointly and severally liable for the amount due for rates.

[59] 16. A rate levied by a municipality on property held by a national or provincial organ of state as a non-beneficial owner is not recoverable from the organ of state.

[60] 17. (1) A municipality must recover a rate –

(a) in a single annual amount or in monthly instalments of equal or varying amounts; or

(b) in special cases, as may be agreed with the owner of the property.

(2) A rate payable in a single annual amount must be paid before a day determined by the municipality and a rate payable in monthly instalments must be paid before a day in each month determined by the municipality.

[61] 18. (1) A municipality must furnish each person liable for the payment of a rate with a written account specifying –

(a) the annual amount or the amount of the monthly instalment payable;

(b) the date before which the amount is payable;

(c) the basis of calculation of the amount;

(2) The fact that a person liable for the payment of a rate has not received an account sent by the municipality to that person’s postal address as recorded in the municipality’s property register, does not affect that person’s liability to pay the amount due.

[62] 19. (1) If an amount due for rates levied in respect of a property is unpaid after the day determined in terms of section [60] 17 (2), the municipality may recover the amount in whole or in part from a tenant or occupier of the property.

property is limited to the amount of the rent or other money due and payable by the tenant or occupier to the owner of the property.

[63] 20. (1) If the owner of a property is absent, the municipality may recover the amount due for rates on the property in whole or in part from the agent of the owner or other person receiving rent for the property on behalf of the owner.

(2) The amount the municipality may recover from the agent or other person is limited to the amount of the rent received by the agent or that person, less the commission due to that agent or person subject to the Estate Agents Act, 1976 (Act No. 112 of 1976).

(3) The agent or other person, on request by the municipality, must furnish the municipality with a written statement specifying all payments received by that agent or person during a period determined by the municipality for rent on the property.

[15] 21. A municipality intending to levy a rate on property in the municipality must in accordance with this Act cause –

[16] 22. (1) For the purposes of a general valuation, a municipality must fix a date that may be no more than six months before the first day of July of the year in which the roll is to be implemented.

(2) The general valuation must reflect the value, determined in terms of this Act, of all property to be rated, as at the date of valuation.

[17] 23. (1) A valuation roll –

(2) At the request of a municipality, the MEC for local government in the province may extend the period for which a valuation roll remains in force to five financial years.

[18] 24. (1) A municipality, before the valuation date, must appoint an official of the municipality or another person as municipal valuer to be responsible and accountable to it for the preparation and completion to certification, of a valuation roll.

(2) A person who is not an official of the municipality may be appointed as municipal valuer only through a competitive bidding process in terms applicable legislation.

[19] 25. (1) A municipal valuer must in accordance with this Act–

(2) A municipal valuer who is not an official of a municipality may appoint one or more assistant municipal valuers to assist the municipal valuer with the performance of any of the functions set out in subsection (1).

(3) The municipal manager may designate one or more officials of the municipality as assistant municipal valuers to assist the municipal valuer with the performance of any of those functions if the municipal valuer is an official of the municipality.

[20] 26. (1) A municipality may enter into an agreement with one or more other municipalities to appoint a single municipal valuer and to share the cost of preparing valuation rolls.

(2) Section [18] 24 (2) does not apply if the municipalities concerned agree to appoint an official of one of them as municipal valuer.

[21] 27. (1) A municipal valuer –

(2) An municipal assistant municipal valuer –

[22] 28. Before assuming office, a municipal valuer or assistant municipal valuer must make the prescribed declaration before a commissioner of oaths regarding the performance of office, and lodge a certified copy of the declaration with the municipal manager.

[23] 29. (1) A municipal valuer, assistant municipal valuer or a person authorised by the municipal valuer may, at any reasonable time during the day, enter upon and inspect any property that must be valued for purposes of the valuation roll.

(2) If another Act of Parliament restricts or prohibits entry to any specific property, the municipal valuer must value that property by the best generally recognised valuation practice or method that does not require inspection.

(3) A municipal valuer or assistant municipal valuer may -

[24] 30. A municipal valuer or assistant municipal valuer who has a direct or indirect pecuniary interest in a property to be valued by that valuer, may not perform the valuation unless that interest is recorded and disclosed in the prescribed manner.

[25] 31. A municipal valuer, assistant municipal valuer or person authorised in terms of section 23 (1) may not disclose to any person any confidential information obtained in terms of this Act, except –

(a) within the scope of that valuer or person’s powers and duties in terms of this Act;

[26] 32. (1) Property to be valued for purposes of a rate must be valued in accordance with generally recognised valuation practices, methods and standards, and the provisions of this Act.

(2) For the purposes of subsection (1) –

(a) physical inspection of the property to be valued is optional; and

(iv) computer assisted mass appraisal systems or techniques.

(3) (a) If the available market related data of any category of new rateable property is not sufficient for the proper application of subsections (1) and (2), such property may be valued in accordance with any mass valuation system or technique as may be approved by the municipality concerned and as may be appropriate in the circumstances, including a valuation system or technique based on predetermined bands of property value and the designation of properties to one of those bands on the basis of minimal market related data.

(b) This subsection expires 10 years after this Act took effect.

[27] 33. (1) Subject to section 51(3) of the Sectional Titles act, 1986 [(Act No. 95 of 1986)], and the other provisions of this Act-

(2) In determining the value of a property –

[28] 34. When valuing units in a sectional title scheme, the valuer must -

[29] 35. (1) A municipality may apply to the MEC for local government in the province for approval to value a property by special valuation where –

(a) there is insufficient information on which to base market value;

(b) the market is inadequately developed or distorted;

(c) property and tenure rights are obscure or confused;

(d) the cost of a non-special valuation is likely to equal or exceed the revenue yield;

(e) there is no material municipal service delivery; or

(2) A special valuation may be carried out on the basis of –

(a) self-valuation by affidavit;

[30] 36. (1) A valuation roll must list all property in the municipal area on which the municipality intends to levy a rate.

(2) The valuation roll must reflect the following particulars in respect of each property as at the date of valuation:

(a) the registered or other description of the property;

(b) the category in which the property falls;

(c) the address of the property;

(d) the extent of the land area of the property;

(e) the site value, the value of the improvements and the improved value;

(f) the valuation practice or method applied and whether there was a special valuation;

(g) the name of the owner;

(h) the postal address of the owner; and

(3) If the property is a registered sectional title scheme –

(i) the number of the unit;

(ii) the participation quota as depicted in the sectional title register; and

(iii) the name and postal address of the owner.

[31] 37. The municipal valuer must submit the valuation roll to the municipal manager, and the municipal manager must within 21 days of receipt of the roll –

[32] 38. (1) Any person with a legitimate interest in the valuation role may within the period during which the valuation roll lies open for inspection –

(a) inspect and make extracts from the roll during office hours; and

(2) The municipal manager must assist an objector to lodge an objection if that objector is unable to read or write.

against any matter appearing on or omitted from the roll.

[33] 39. The municipal valuer must –

[34] 40. (1) When the municipal valuer has disposed of all objections and has made all necessary adjustments to the valuation roll, or if there were no objections, the municipal valuer must certify and sign the roll.

(2) On certification a valuation roll becomes final for the period for which it is in force, subject to any appeals in terms of Chapter [5] 7.

[35] 41. Immediately after certification of a valuation roll the municipal manager must-

[36] 42. (1) Within 30 days after publication of the notice referred to in section [35] 41 (a) an objector whose objection has been dismissed, may apply in writing to the municipal valuer for the reasons for the decision.

(2) The municipal valuer must without delay provide the objector with the reasons for the decision in writing, after payment of any prescribed fee.

[37] 43. (1) An objector aggrieved by the decision of the municipal valuer may within 30 days of the date of publication of the notice referred to in section [35] 41, or if the objector has requested reasons in terms of section [36] 42, within 14 days after the day on which the reasons were sent to the objector, appeal in the prescribed manner to the valuation appeal board concerned against the decision of the municipal valuer.

(2) Subsection (1), adjusted as the context may require, applies to a municipal council and any other person that is not an objector but is directly affected by a decision of the municipal valuer.

(3) An appeal lodged in terms of this section does not defer a person’s liability for payment of the amount of a rate beyond the date determined for payment.

[38] 44. The MEC for local government in a province must by notice in the provincial

Gazette –

(a) establish as many valuation appeal boards in the province as may be necessary; and

(b) designate each valuation appeal board for one or more municipalities in the province.

[39] 45. The function of a valuation appeal board is to hear and decide appeals against decisions by municipal valuers concerning objections to matters appearing on or omitted from valuation rolls of municipalities for which it was designated in terms of section [38] 44(b).

[40] 46. (1) A valuation appeal board consists of -

(a) a chairman who must be -

(i) a judge or magistrate or retired judge or magistrate;

(2) The chairperson and members of a valuation appeal board are appointed by the MEC for local government in the province.

(3) A person may be a member of more than one valuation appeal board.

[41] 47. (1) The following persons may not be a member of a valuation appeal board:

(a) an unrehabilitated insolvent;

(b) a person who is placed under curatorship;

(c) a person who is declared to be of unsound mind by a court of the Republic; or

(2) A disqualification in terms of subsection (1) (d) ends five years after the imprisonment has been completed.

(3) A member of a valuation appeal board who is a councillor or an employee of a municipality must withdraw from the proceedings of the board if that municipality’s valuation roll is considered by the board.

[42] 48. A member of a valuation appeal board is appointed for four years at a time, but is eligible to be re-appointed.

[43] 49. (1) The Minister after consultation with the MECs for local government must determine the conditions of appointment of members of a valuation appeal board.

(2) Conditions of appointment may differ in respect of the chairperson and other members of a valuation appeal board.

(3) The municipality or municipalities for which a valuation appeal board was designated in terms of section [38] 44 (b) must remunerate the members of the board in accordance with their conditions of appointment and the directions of the MEC for local government in the province.

[44] 50. (1) A member of a valuation appeal board -

(2) A member of a valuation appeal board who contravenes or fails to comply with subsection (1) is guilty of misconduct.

[45] 51. (1) A person ceases to be a member of a valuation appeal board when that

person -

(a) resigns;

(b) is no longer eligible to be a member; or

(c) is removed from office in terms of subsection (2).

(2) The MEC for local government in the province may remove a member of a valuation appeal board from office but only on the grounds of misconduct, incapacity or incompetence.

(3) A decision to remove a member of a valuation appeal board on the grounds of misconduct or incompetence must be based on a finding to that effect by an investigating tribunal appointed by the MEC.

(4) The MEC may suspend a member of a valuation appeal board who is under investigation in terms of subsection (2).

[46] 52. (1) The MEC for local government in a province may appoint alternates for the members of a valuation appeal board.

(2) An alternate acts as a member when the member for which the alternate was appointed –

(a) is absent ; or

(b) has vacated office, until the vacancy is filled.

[47] 53. (1) The chairperson of a valuation appeal board decides when and where the board meets, but must convene a meeting if a majority of the members of the board requests the chairperson in writing to convene a board meeting at a time and place set out in the request.

(2) When hearing an appeal, a valuation appeal board must sit at a place in the municipality whose valuation roll is the subject of the appeal.

(3) If the chairperson is absent or not available, or if there is a vacancy in the office of chairperson, the other members of the board may elect one of them to preside at the meeting or to act as chairperson.

[48] 54. (1) A valuation appeal board may require a municipality whose provisional valuation roll is under consideration, to provide the board with the necessary office accommodation and other administrative assistance, including staff for the board.

(2) A municipality is liable for the cost of a valuation appeal board.

[49] 55. A valuation appeal board may determine its internal procedures subject to any procedures that may be prescribed for its proceedings to dispose of appeals.

[50] 56. A question before a valuation appeal board is decided by a supporting vote of at least the majority of the members of the board.

[51] 57. When a valuation appeal board gives its decision it may –

[52] 58. (1) The MEC for local government in the province concerned may authorise a valuation appeal board to establish one or more committees to assist it in the performance of its functions.

(2) When appointing members to a committee a valuation appeal board is not restricted to members of the board.

(3) A valuation appeal board -

(a) must determine the function of a committee;

(b) must appoint the chairperson and other members of the committee;

(d) may remove a member of a committee from office at any time; and

(e) may determine a committee’s procedure.

(4) A valuation appeal board which established a committee may dissolve the committee at any time.

(5) Section [43] 49, adjusted as the context may require, apply to the conditions of appointment of committee members who are not members of a valuation appeal board.

[53] 59. (1) A member of or other person authorised by a valuation appeal board may enter upon and inspect any property that is the subject of an appeal.

(2) If another Act of Parliament restricts or prohibits entry to any specific property and the value of the property is in issue before a valuation appeal board, the board must value the property by the best generally recognised valuation practice or method that does not require inspection.

(3) A member of or other person authorised by a valuation appeal board may -

[54] 60. A member of or other person authorised by a valuation appeal board to inspect property may not disclose to any person any information obtained during the inspection except –

(a) within the scope of that person’s powers and duties in terms of this Act;

[55] 61. (1) A valuation appeal board may-

(a) by written notice summon a person to appear before it–

(i) to give evidence; or

(2) A person appearing before a valuation appeal board, whether summoned or not, may at own expense be assisted by a legal representative.

(3) (a) A person summoned to appear before a valuation appeal board is entitled to witness fees as applicable to state witnesses in criminal proceedings in a court.

(b) Fees referred to in paragraph (a) must be paid by the relevant municipality.

(4) The law regarding privilege as applicable to a witness summoned to give evidence in a criminal case in a court applies to the questioning of a person in terms of subsection (1).

[56] 62. (1) Legal proceedings by or against a valuation appeal board may be instituted in the name of the board.

(2) Any costs awarded in any legal proceedings against a valuation appeal board must be borne by the municipality concerned.

[57] 63. (1) A municipality may whenever necessary after the municipality’s valuation roll has been certified in terms of section [34] 40, cause a supplementary valuation to be made and a supplementary valuation roll to be prepared in respect of any rateable property –

(a) incorrectly omitted from the certified valuation roll;

(b) included in the municipality after the last general valuation;

Chapters [3] 5, [4] 6 and [5] 7 are applicable with the necessary changes as the context may require, except that -

(3) Supplementary valuations must be made as at the date of valuation that applied to the last general valuation.

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