SUID-AFRIKAANSE RAAD VIR DIE EIENDOMSWAARDEERDERSPROFESSIE
SOUTH AFRICAN COUNCIL FOR THE PROPERTY VALUERS PROFESSION
5 May 2003


COMMENTS: LOCAL GOVERNMENT PROPERTY RATES BILL, 2003

Herewith the joint comments by the South African Council for the Property Valuers Profession and The South African Institute of Valuers (hereafter collectively referred to as the Property Valuers Profession) on the Local Government: Property Rates Bill, 2003.

General notes:

These comments are based on the Bill as published on the website www.dplg.gov.za.
The comments of the Property Valuers Profession on the Bill arise from many decades of practical experience of valuation for property rating in South Africa.
In considering those comments it must be borne in mind that the members of the Property Valuers Profession are the persons who will have to apply the provisions of the Bill in respect of property valuation when it becomes law.
The Property Valuers Profession regards it as its duty to caution that if certain of its comments are ignored and the Bill, in its present form, becomes law, its application will lead to utter chaos.
In the copy of the Bill hereunder –
the comments of the Property Valuers Profession are contained in a box following the clause, subclause or paragraph to which the comments relate; and
proposed deletions are indicated in square brackets and strikethrough type and proposed insertions are underlined, as follows [delete], insert.

REPUBLIC OF SOUTH AFRICA

LOCAL GOVERNMENT:
PROPERTY RATES BILL


(As introduced in the National Assembly as a section 75 Bill; Bill published in
Government Gazette No. 24589 of 18 March 2003)
(The English text is the official text of the Bill)


(MINISTER FOR PROVINCIAL AND LOCAL GOVERNMENT)

GENERAL EXPLANATORY NOTE:
Words underlined with a solid line indicate insertions in
existing enactments.


BILL



To regulate the power of a municipality to impose rates on property; to amend the
Local Government: Municipal Systems Act, 2000, so as to make further provision
for the serving of documents by municipalities; to amend or repeal certain
legislation; and to provide for matters connected therewith.

BE IT ENACTED by the Parliament of the Republic of South Africa, as
follows:—

ARRANGEMENT OF ACT

Section

CHAPTER 1

INTERPRETATION

1. Definitions

CHAPTER 2

RATING

2. Power to levy rates

Part 1
Rates policy

3. Adoption of rates policy
4. Process of community participation
5. Annual review of rates policy
6. By-laws to give effect to property rates policy

Part 2
Levying of rates

7. Rates to be levied on all rateable property
8. Differential rates
9. Levying of rates on property in sectional title schemes
10. Amount of rates
11. Period for which rates may be levied
12. Commencement of rates
13. Rates to be levied by resolution
14. Exemptions, reductions and rebates

Part 3
Limitations on levying of rates

15. Constitutional constraints
16. Impermissible differentiation
17. Limits on annual increases of rates
18. Compulsory phasing in of certain rates

Part 4
Additional rates

19. Special rating areas

Part 5
Municipal property register

20. Register of properties

CHAPTER 3

LIABILITY FOR RATES

21. Property rates payable by owners
22. Payment of rates on property in sectional title schemes
23. Method and time of payment
24. Accounts to be furnished
25. Recovery of rates in arrear from tenants and occupiers
26. Absent owners

CHAPTER 4

GENERAL VALUATION OF RATEABLE PROPERTY

Part 1
General

27. General valuation and preparation of valuation rolls
28. Date of valuation
29. Commencement and period of validity of valuation rolls

Part 2
Municipal valuers

30. Appointment of municipal valuers
31. Functions of municipal valuers
32. Municipal partnerships
33. Qualifications of municipal valuers
34. Prescribed declaration
35. Right to inspect property
36. Conduct of valuers
37. Protection of confidential information

CHAPTER 5

VALUATION CRITERIA

38. Valuation
39. General basis of valuation
40. Valuation of property in sectional title schemes

CHAPTER 6

VALUATION ROLLS

41. Contents of valuation rolls
42. Public notice of valuation rolls
43. Inspection of, and objections to, valuation rolls
44. Processing of objections
45. Adjustments to valuation rolls
46. Compulsory review of decisions of municipal valuer
47. Notification of outcome of objections and furnishing of reasons
48. Right of appeal

CHAPTER 7

VALUATION APPEAL BOARDS

49. Establishment
50. Functions
51. Composition
52. Disqualifications
53. Term of office
54. Conditions of appointment
55. Conduct of members
56. Termination of membership
57. Alternates
58. Meetings
59. Administrative assistance
60. Procedures
61. Decisions
62. Decisions affecting valuation rolls
63. Orders as to costs
64. Committees of appeal boards
65. Right to inspect
66. Protection of confidential information
67. Powers of appeal boards
68. Proceedings by, or against, appeal boards

CHAPTER 8

SUPPLEMENTARY VALUATIONS

69. Supplementary valuations

CHAPTER 9

MISCELLANEOUS MATTERS

70. National monitoring and reporting
71. Regulations
72. Offences
73. Application of Act when in conflict with other laws
74. Transitional arrangement: Valuation and rating under prior legislation
75. Transitional arrangement: Use of existing valuation rolls
76. Transitional arrangement: Liability of bodies corporate of sectional title
schemes
77. Amendment of section 115 of Act 32 of 2000
78. Amendment and repeal of legislation
79. Short title and commencement

SCHEDULE

Part 1: Laws of the former Province of the Cape of Good Hope
Part 2: Laws of the former Province of Natal
Part 3: Laws of the former Province of the Orange Free State
Part 4: Laws of the former Province of the Transvaal
Part 5: Other laws

CHAPTER 1

INTERPRETATION

Definitions

1. In this Act, unless the context indicates otherwise—
‘‘annually’’ means once every financial year;
‘‘appeal board’’ means a valuation appeal board established in terms of section 49;
‘‘category’’, in relation to property, means a category of property determined in
terms of section 8;
‘‘date of valuation’’ means the date determined by a municipality in terms of
section 28(1);
‘‘district management area’’ means a part of a district municipality which in
terms of section 6 of the Municipal Structures Act has no local municipality and is
governed by that municipality alone;
‘‘district municipality’’ means a municipality that has municipal executive and
legislative authority in an area that includes more than one municipality, and which
is described in section 155(1) of the Constitution as a category C municipality;
‘‘effective date’’, in relation to a valuation roll, means the date on which the
valuation roll takes effect in terms of section 29(1);
‘‘existing rateable property’’ means property on which a rate was levied before 30
June 2002;

‘‘financial year’’ means the period starting from 1 July in a year to 30 June the next
year;
‘‘improved value’’, in relation to a property, means the value of property,
including improvements, determined in accordance with this Act;

‘‘improvements’’, in relation to a property, means any building, whether movable
or immovable, and any other immovable structure in or on the property or under the
surface of the property, but excludes—
(a) a structure constructed solely for the purpose of constructing such a building
or immovable structure; and

(b) any building or other immovable structure under the surface of the property
which is the subject matter of any mining authorisation or mining right
defined in the Minerals Act, 1991 (Act No. 50 of 1991);
‘‘land reform beneficiary’’, in relation to a property, means a person who—
(a) acquired the property through—
(i) the Provision of Land and Assistance Act, 1993 (Act No. 126 of 1993);
or
(ii) 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); or
(c) holds or acquires the property in terms of such other land tenure reform
legislation as may hereafter be enacted pursuant to subsection (6) or (7) of
section 25 of the Constitution;
‘‘land tenure right’’ means any deed of grant, quitrent, permission to occupy or
other right created by legislation or recognised by indigenous law to occupy land,
but does not include full ownership;
‘‘local community’’, in relation to a municipality—
(a) means that body of persons comprising—
(i) the residents of the municipality;
(ii) the ratepayers of the municipality;
(iii) any civic organisations and non-governmental, private sector or labour
organisations or bodies which are involved in local affairs within the
municipality; and
(iv) visitors and other people residing outside the municipality who, because
of their presence in the municipality, make use of services or facilities
provided by the municipality; and
(b) includes, more specifically, the poor and other disadvantaged sections of such
body of persons;
‘‘ local municipality’’ means a municipality that shares municipal executive and
legislative authority in its area with a district municipality within whose area it
falls, and which is described in section l55(1) of the Constitution as a category B
municipality;
‘‘ MEC for local government’’ means the member of the Executive Council of a
province responsible for local government in that province;
‘‘ metropolitan municipality’’ means a municipality that has exclusive executive
and legislative authority in its area, and which is described in section l55 (1) of the
Constitution as a category A municipality;
‘‘ Minister’’ means the Cabinet member responsible for local government;
‘‘ municipal council’’ or ‘‘ council’’ means a municipal council referred to in
section 18 of the Municipal Structures Act;
‘‘ municipality’’ —
(a) as a corporate entity, means a municipality described in section 2 of the
Municipal Systems Act; and
(b) as a geographical area, means a municipal area demarcated in terms of the
Local Government: Municipal Demarcation Act, 1998 (Act No. 27 of 1998);
‘‘ municipal manager’’ means a person appointed in terms of section 82 of the
Municipal Structures Act;
‘‘ Municipal Structures Act’’ means the Local Government: Municipal Structures
Act, 1998 (Act No. 117 of 1998);
‘‘ Municipal Systems Act’’ means the Local Government: Municipal Systems Act,
2000 (Act No. 32 of 2000);
‘‘ newly rateable property’’ means rateable property on which property rates were
not levied before 30 June 2003 or the end of financial year preceding the date of
promulgation of this Act;

‘‘ occupier’’ , in relation to a property, means a person in actual occupation of
property without regard to the title, if any, under which that person occupies the
property;
‘‘ organ of state’’ means an organ of state defined in section 239 of the
Constitution;
‘‘ owner’’ —
(a) in relation to property referred to in paragraph (a) of the definition of
‘‘ property’’ , means—
(i) a person in whose name the property is registered; or
(ii) in the case of a sectional title scheme, a person in whose name a sectional
title unit is registered;

(b) in relation to a right referred to in paragraph (b) of the definition of
‘‘ property’’ , means a person in whose name the right is registered; or
(c) in relation to a land tenure right referred to in paragraph (c) of the definition
of ‘‘ property’’ , means a person in whose name the right is registered or to
whom it was granted in terms of legislation,
provided that persons mentioned below may be regarded by a municipality as
owner in the following cases:
(i) A trustee, in the case of property in a trust excluding state trust land;
(ii) an executor or administrator, in the case of property in a deceased estate;
(iii) a trustee or liquidator, in the case of property in an insolvent estate or in
liquidation;
(iv) a judicial manager, in the case of property in the estate of a person under
judicial management;
(v) a curator, in the case of property in the estate of a person under
curatorship;
(vi) a usufructuary, in the case of a property that is subject to a usufruct; or

(vii) a lessee, in the case of property that is registered in the name of a
municipality and is leased by it;

‘‘ person’’ includes an organ of state;
‘‘ prescribe’’ means prescribe by regulation in terms of section 71;

‘‘ property’’ means—
(a) immovable property registered in the name of a person;

(b) a right registered against immovable property in the name of a person; or
(c) a land tenure right registered in the name of a person or granted to a person in
terms of legislation;
‘‘ property register’’ means a register of properties referred to in section 20;
‘‘ protected area’’ means any area declared in terms of national or provincial
legislation as an area for the conservation of the biological diversity in the area or
the preservation of the ecological integrity of the area;
‘‘ public service infrastructure’’ means—

(a) national, provincial or other public roads on which goods, services or labour
move across a municipal boundary;
(b) water or sewer pipes, ducts or other conduits, dams and water supply
reservoirs forming part of a water or sewer scheme serving the public across
a municipal boundary;
(c) power stations, power substations or power lines forming part of an electricity
scheme serving the public across a municipal boundary;

(d) pipelines for gas and liquid fuels, forming part of a scheme for transporting
such fuels across a municipal boundary;
(e) railway lines forming part of a national railway system;
(f) telecommunication towers or lines forming part of a telecommunications
system serving the public across a municipal boundary;
(g) runways or aprons at national or provincial airports;

(h) waterways at harbours to and from which goods, services or labour move
across a municipal boundary; or
(i) rights of way, easements and servitudes in connection with infrastructure
mentioned in paragraphs (a) to (h);
‘‘ rate’’ means a municipal rate on property envisaged in section 229(1)(a) of the
Constitution;
‘‘ rateable property’’ means property on which a municipality may in terms of
section 2 levy a rate, excluding property in respect of which rates are disallowed in
terms of section 15(1);
‘‘ register’’ —
(a) means to record in a register in terms of—
(i) the Deeds Registries Act, 1937 (Act No. 47 of 1937); or
(ii) the Mining Titles Registration Act, 1967 (Act No. 16 of 1967); and

(b) includes any other formal act in terms of any other legislation to record—
(i) a right to use land for or in connection with mining purposes; or
(ii) a land tenure right,
and ‘‘ registered’’ and ‘‘ unregistered’’ have corresponding meanings;
‘‘ Sectional Titles Act’’ means the Sectional Titles Act, 1986 (Act No. 95 of 1986);
‘‘ sectional title scheme’’ means a scheme defined in section 1 of the Sectional
Titles Act;
‘‘ sectional title unit’’ means a unit defined in section 1 of the Sectional Titles Act;
‘‘ state trust land’’ means land owned by the state—
(a) in trust for a tribe or another identifiable community of persons;
(b) over which land tenure rights were registered or granted; or
(c) which is earmarked for disposal in terms of the Restitution of Land Rights
Act, 1994 (Act No. 22 of 1994);
‘‘ this Act’’ includes regulations made in terms of section 71.

CHAPTER 2

RATING

Power to levy rates

2. (1) A metropolitan or local municipality may levy a rate on property in its
respective area.

(2) A district municipality may not levy a rate on property except on property in a
district management area within the municipality.

(3) A municipality must exercise its power to levy a rate on property subject to—
(a) section 229 of the Constitution;
(b) other provisions of this Act; and
(c) the rates policy it must adopt in terms of section 3.
Part 1
Rates policy

Adoption of rates policy

3. (1) [Amunicipal] A municipal council must adopt a policy consistent with this Act on the levying
of rates on rateable property in a municipality.

(2) A rates policy must—
(a) treat persons liable for rates equitably;
(b) determine the criteria to be applied by a municipality if it—
(i) levies different rates for different categories of property;
(ii) exempts a property or property of a specific category from a rate;
(iii) grants rebates or reductions in respect of a rate; or
(iv) increases rates;
(c) identify and quantify all exemptions, rebates and reductions in terms of costs
to a municipality and benefit to the local community;
(d) take into account the effect of rates on the poor and include appropriate
measures to alleviate the rates burden on them;
(e) take into account the effect of rates on welfare and charitable organisations, in
the case of property used by such organisations;
(f) allow a municipality to promote local, social and economic development; and
(g) identify, on the basis of a cost benefit analysis, all rateable properties that may
not be subjected to valuation for purposes of rating.

(3) Any exemptions, rebates or reductions referred to in subsection (2) and provided
for in a rates policy adopted by a municipality must comply with a national framework
that may be prescribed.

Process of community participation

4. (1) Before a municipality adopts its rates policy, a municipality must—
(a) follow a process of community participation in accordance with Chapter 4 of
the Municipal Systems Act; and
(b) comply with subsection (2).

(2) A municipal manager must—
(a) conspicuously display, for a period of at least 14 days, a copy of the draft rates
policy at the main administrative office of that municipality and at such other
places within the municipality to which the public has access and as he or she
may determine; and
(b) publish in a newspaper of general circulation in that municipality a notice—
(i) stating—
(aa) that a draft rates policy has been prepared for submission to the
council; and
(bb) that a copy of the draft rates policy is available for public inspection
during office hours at the main administrative office of the
municipality concerned and at any other places specified in the
notice; and
(ii) inviting the local community to submit written comments and represen-tations
to the municipality concerned within a period specified in the
notice.

(3) A municipal council must take all comments and submissions made to it or
received by it into account when it considers the draft rates policy.

Annual review of rates policy

5. (1) A municipal council must annually review, and if necessary, adjust its rates
policy.

(2) Sections 3 and 4, read with the necessary changes as the context may require,
apply to any adjustment of a rates policy.

By-laws to give effect to property rates policy

6. (1) A municipality must adopt by-laws to give effect to the implementation and
enforcement of its rates policy.

(2) By-laws in terms of subsection (1) may differentiate between—
different categories of property; and

different categories of owners liable for the payment of rates.

Part 2
Levying of rates

Rates to be levied on all rateable property

7. (1) If a municipality decides to levy rates, it must, subject to subsection (2), levy
rates on all rateable property in its area or, in the case of a district municipality, on all
rateable property in the district management area.

(2) Subsection (1) does not—
(a) oblige a municipality to levy rates on property—
(i) of which that municipality itself or another municipality is the owner; or

(ii) referred to in paragraph (b) of the definition of ‘‘ property’’ in section 1;
or
(iii) for which tenure is legally insecure as a result of past racially
discriminatory laws or practices and for which it is therefore impossible
or unreasonably difficult to establish a value; or
(b) prevent a municipality from granting in terms of section 14 exemptions from,
or rebates or reductions on, rates levied in terms of subsection (1).

Differential rates

8. (1) Subject to section 16, a municipality may in terms of the criteria set out in its
rates policy levy different rates for different categories of rateable property.

(2) A municipality may determine categories of rateable property for the purposes of
subsection (1) according to the—
(a) use of the property;
(b) permitted use of the property; or
(c) geographical area in which the property is situated.

(3) Categories of rateable property that may be determined in terms of subsection (2)
include the following:
(a) Residential properties;
(b) industrial properties;
(c) commercial properties;

(d) farm property used for—
(i) agricultural purposes;
(ii) other commercial purposes; or
(iii) non-commercial purposes;
(e) unused farm property;

(f) smallholdings used for—
(i) agricultural purposes;
(ii) residential purposes;
(iii) industrial purposes; or
(iv) commercial purposes;

(g) privately owned towns serviced by the owner;
(h) formal and non-formal settlements;
(i) tribal and other forms of communal property;
(j) state trust land;
(k) property—
(i) acquired through the Provision of Land and Assistance Act, 1993 (Act
No. 126 of 1993), or the Restitution of Land Rights Act, 1994 (Act No.
22 of 1994); or
(ii) which is subject to the Communal Property Associations Act, 1996 (Act
No. 28 of 1996);
(l) protected areas; or
(m) property on which national monuments are proclaimed.

Levying of rates on property in sectional title schemes

9. [Arate] A rate on property which is subject to a sectional title scheme must be levied on the
individual sectional title units in the scheme and not on the property as a whole.

Amount of rates

10. (1) A rate levied on property must be a—
(a) rate based on the improved value of the property shown on the current
valuation roll of a municipality; or
(b) flat rate for property within a specified valuation band, provided that band is
below a prescribed valuation limit.

(2) The amount of a flat rate in terms of subsection (1)(b) may not exceed the amount
that would otherwise have been payable on properties in the lower end of the valuation
band had the rate been levied in terms of subsection (1)(a).

Period for which rates may be levied

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

Commencement of rates

12. A rate—
(a) takes effect from the start of a financial year or from such later date as may be
specified in the resolution referred to in section 13 in terms of which the rate
is levied; and
(b) may not be levied retrospectively.

Rates to be levied by resolution

13. (1) A rate is levied by a municipality by resolution passed by a municipal council
with a supporting vote of a majority of its members.

(2) A municipal manager must, without delay—
(a) conspicuously display for a period of at least 30 days a copy of the resolution
at the main administrative office of the municipality concerned and at such
other places within the municipality to which the public has access and as he
or she may determine; and
(b) publish in a newspaper of general circulation in that municipality a notice
stating—
(i) that a resolution levying a rate on property has been passed by the
council; and

(ii) that a copy of the resolution is available for public inspection during
office hours at the main administrative office of the municipality
concerned and at any other places specified in the notice.

Exemptions, reductions and rebates

14. (1) A municipality may in terms of criteria set out in its rates policy—
(a) exempt the owner of a specific property, or the owners of a specific category
of properties, from payment of a rate levied on their property; or
(b) grant to the owner of a specific property, or to the owners of a specific category
of properties, a rebate on or a reduction in the rates payable on their property.

(2) A municipal manager must annually table in the municipal council—
(a) a list of all exemptions, rebates and reductions granted in terms of subsection
(1) during the previous financial year; and
(b) a statement reflecting the income for the municipality foregone by way of
such exemptions, rebates and reductions.

(3) All exemptions, rebates and reductions granted in terms of subsection (1) must be
reflected in the annual budget of a municipality as—
(a) income on the revenue side; and
(b) expenditure on the expenditure side.

Part 3
Limitations on levying of rates

Constitutional constraints

15. (1) A municipality may not exercise its power to levy rates on property in a way
that would materially and unreasonably prejudice—
(a) national economic policies;
(b) economic activities across its boundaries; or
(c) the national mobility of goods, services, capital or labour.

(2) Rates that are disallowed in terms of subsection (1) include rates on—
(a) public service infrastructure;
(b) coastal public property regulating the protection of the coastal environment;
(c) the territorial waters of the Republic determined in the Maritime Zones Act,
1994 (Act No. 15 of 1994), and islands of which the state is the owner;
(d) the Prince Edward Islands referred to in the Prince Edward Islands Act, 1948
(Act No. 43 of 1948);
(e) any State-owned land declared as a national or provincial protected area,
excluding any such part of such area which is used for commercial or business
purposes;
(f) mineral rights within the meaning of paragraph (b) of the definition of
‘‘ property’’ in section 1;
(g) property belonging to a land reform beneficiary for a period of ten years from
the date on which such beneficiary’s title is registered in the office of the
Registrar of Deeds, for so long as the property is owned by the land reform
beneficiary who first acquires title and his or her heirs;
(h) at least the first R15 000 of value of all residential property, provided that the
Minister may, in consultation with the Minister of Finance, from time to time,
increase this monetary limit to reflect inflation; and

(i) property or a category of properties identified in terms of subsection (3), or
rates above the specified limit on such property or category of properties.

(3) If a rate on any specific property or category of properties or a rate above a specific
limit on such property or category of such properties, would materially and
unreasonably prejudice any of the matters listed in subsection (1), the Minister, acting
with the concurrence of the Minister of Finance, may by notice in the Gazette—
(a) identify that property or category of properties;
(b) specify that limit, if applicable; and
(c) give notice to the relevant municipality or municipalities that a rate, or a rate
above the specified limit, on that property or category of properties is
disallowed in terms of subsection (2)(i).

(4) [Anotice] A notice issued in terms of subsection (3) must give the reasons why a rate on that
property or category of properties, or a rate above the specified limit on that property or
category of properties, would materially and unreasonably prejudice a matter listed in
subsection (1).

(5) The Minister, acting with the concurrence of the Minister of Finance, may by
notice in the Gazette issue guidelines to assist municipalities in the exercise of their
power to levy rates consistent with subsection (1).

Impermissible differentiation

16. (1) A municipality may not levy—
(a) different rates on different categories of residential properties, except as
provided for in sections 10(1)(b), 18 and 75;
(b) a rate on non-residential property that exceeds a prescribed ratio to the rate on
residential properties determined in terms of section 10(1)(a);or
(c) rates which unreasonably discriminate between categories of—
(i) commercial properties;
(ii) industrial properties; or
(iii) agricultural properties.

(2) The ratio referred to in subsection (1)(b) may only be prescribed with the
concurrence of the Minister of Finance.

Limits on annual increases of rates

17. (1) The Minister may, with the concurrence of the Minister of Finance and by
notice in the Gazette, set a limit on the percentage by which a rate on property may be
increased.

(2) Different limits may be set in terms of subsection (1) for—
(a) different kinds of municipalities which may, for the purposes of this section,
be defined in the notice either in relation to categories or types of municipality
within the meaning of the Municipal Structures Act or in any other way; or
(b) different categories of property.

(3) The Minister may on good cause exempt a municipality from a limit set in terms
of subsection (1).

Compulsory phasing in of certain rates

18. (1) A rate levied on new rateable property or on property of which the owner is a
land reform beneficiary must, subject to subsection (4), be phased in over a period of
three financial years, beginning from the end of the rates exclusion period specified in
terms of paragraph 15(2)(g).

(2) A rate referred to in subsection (1) may—
(a) in the first year, be not more than 25 per cent of the rate for that year otherwise
applicable to the property;
(b) in the second year, be not more than 50 per cent of the rate for that year
otherwise applicable to the property; and
(c) in the third year, be not more than 75 per cent of the rate for that year
otherwise applicable to the property.

(3) [Arate] A rate levied on new rateable property or on property of which the owner is a land
reform beneficiary may not be higher than the rate levied on similar property or category
of property in the municipality.

(4) The MEC for local government 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.

(5) When extending a phasing-in period, the MEC for local government must
determine the maximum percentage of the rate payable during each financial year in the
extended period.

Part 4
Additional rates

Special rating areas

19. (1) A municipality may—
(a) define an area within that municipality as a special rating area; and
(b) levy an additional rate on property in that area for the purpose of funding for
improvements exclusively in that area.

(2) Before determining a special rating area, a municipality—
(a) must consult the local community;
(b) must obtain the consent of the majority of the members of the local
community in the proposed special rating area that may be required to
contribute to the additional rate; and
(c) may establish a committee composed of persons representing the community
in that area to act as a consultative and advisory forum for that municipality on
the improvements to be effected in it, provided gender representivity is taken
into account when such committee is established.

(3) When a municipality determines a special rating area, that municipality must—
(a) determine the boundaries of that area;
(b) indicate improvements to be effected in that area; and
(c) establish separate accounting and other record-keeping systems regarding the
revenue generated by the additional rate and the improvements to be effected
in that area.

(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 that
municipality, including a special rating area.

Part 5
Municipal property register

Register of properties

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

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

(3) Part B of the register must specify which properties on the valuation roll are
subject to—
(a) an exemption from the rate in terms of section 14;
(b) a rebate on or a reduction in the rate in terms of section 14; and
(c) a phasing in of the rate in terms of section 18.

(4) The register must be open for inspection by the public during office hours.

A municipality must review the register at least annually.

CHAPTER 3

LIABILITY FOR RATES

Property rates payable by owners

21. (1) A rate levied by a municipality on property must be paid by the owner of the
property subject to Chapter 9 of the Municipal Systems Act.

(2) Joint owners of property other than property in a sectional title scheme are jointly
and severally liable for the amount due for rates.

Payment of rates on property in sectional title schemes

22. (1) [Arate] A rate levied by a municipality on a sectional title unit is payable by the owner
of the unit.

(2) [Amunicipality] A municipality may not recover the rate, or any part of it, from the body corporate
controlling a sectional title scheme.

(3) A body corporate controlling a sectional title scheme may not apportion and
collect rates from the owners of the sectional title units in the scheme.

Method and time of payment

23. (1) A municipality may recover a rate in—
(a) a single amount annually or in periodic instalments of equal or varying
amounts; or
(b) special cases, as may be agreed to with the owner of the property.

(2) (a) If a rate is payable in a single amount annually it must be paid before a day
determined by that municipality.
(b) If it is payable in instalments it must be paid before a day in each period
determined by that municipality.

Accounts to be furnished

24. (1) A municipality must furnish each person liable for the payment of a rate with
a written account specifying—
(a) the amount payable;
(b) the date before which the amount is payable;
the basis of calculation of the amount;

(d) the [improved] value of the property;
(e) particulars of any phasing in of the rate; and
(f) in the case of an additional rate referred to in section 19, the amount and the
purpose of the rate.

(2) A person who has not received a written account in terms of subsection (1) must
enquire from the municipality’s office the amount due for rates and, on receipt of such
information, is liable for payment of such rates.

Recovery of rates in arrears from tenants and occupiers

25. (1) If an amount due for rates levied in respect of a property is unpaid after the day
determined in terms of section 23(2), a municipality may recover the amount in whole
or in part from a tenant or occupier of the property.

(2) The amount a municipality may recover from the tenant or occupier of the
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.

(3) Any amount a municipality recovers from the tenant or occupier of the property
may be set off by the tenant or occupier against any money owed by the tenant or
occupier to the owner.

Absent owners

26. (1) If an owner of a property is absent, a 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) A municipality may recover the amount due for rates from an agent of the owner
or person receiving rent for the property on behalf of the owner, only after it has given
written notice to that agent or person.

(3) The amount a municipality may recover from the agent or other person is limited
to the amount of that rent received by that agent or person after written notice has been
given by that municipality to that agent or person in terms of subsection (2), less the
commission due to that agent or person, subject to the Estate Agents Affairs Act, 1976
(Act No. 112 of 1976).

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

CHAPTER 4

GENERAL VALUATION OF RATEABLE PROPERTY

Part 1
General

General valuation and preparation of valuation rolls

27. (1) A municipality intending to levy a rate on property must in accordance with
this Act cause—
(a) a general valuation to be made of all rateable properties in a municipality
subject to subsection (2); and
(b) a valuation roll of all those properties to be prepared.

(2) Rateable properties mentioned in section 7(2)(a) must be included in the general
valuation only to the extent that a municipality intends to levy a rate on those properties.

Date of valuation

28. (1) For the purposes of a general valuation, a municipality must fix a period that
may not be more than nine months before the beginning of a financial year in which the
roll is to be first implemented.

(2) The general valuation must reflect the value of properties, determined in terms of
this Act, as at the date of valuation.

Commencement and period of validity of valuation rolls

29. (1) A valuation roll—
(a) takes effect from the beginning of a financial year following the completion of
public inspection period required by section 42; and

(b) remains valid for that financial year or for one or more subsequent financial
years as that municipality may decide, but in total not for more than four
financial years.

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

Part 2
Municipal valuers

Appointment of municipal valuers

30. (1) A municipality, before the valuation date, must appoint a municipal valuer.

(2) [Aperson] A person who is not an official of a municipality may be appointed as a municipal
valuer only through an open, competitive and transparent process.

(3) The MEC for local government—
(a) must monitor the appointment of municipal valuers; and
(b) may take appropriate steps, including an intervention in terms of section 139
of the Constitution, if a municipality fails to comply with subsection (1).

Functions of municipal valuers

31. (1) A municipal valuer must in accordance with this Act—
(a) prepare a valuation roll of all rateable properties in a municipality, in
accordance with Chapter 6;
(b) value such properties;
submit the valuation roll to a municipality within a prescribed period;

consider and decide objections to the valuation roll;

(e) attend every meeting of an appeal board when that appeal board—
(i) hears an appeal against a decision of that valuer; or
(ii) reviews a decision of that valuer;
(f) prepare a supplementary valuation roll whenever this becomes necessary; and
(g) generally, provide the municipality with appropriate administrative support
incidental to the valuation roll.

(2) A municipal manager may designate one or more officials of a municipality as
assistant municipal valuers to assist a municipal valuer with the performance of any of
the functions set out in subsection (1).

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

(4) When appointing assistant municipal valuers, a municipal valuer is not entitled to
recover from a municipality the cost of such appointments otherwise than in terms of the
agreement concluded between the valuer and the municipality following an open,
competitive and transparent process referred to in section 30(2).

Municipal partnerships

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

(2) Section 30(2) does not apply if the municipalities concerned agree to appoint an
official of one of them as their municipal valuer.

Qualifications of municipal valuers

33. (1) A municipal valuer—
(a) must be a person registered as a valuer or an associated valuer in terms of the
Property Valuers Profession Act, 2000 (Act No. 47 of 2000); and

(b) may not be a councillor of that municipality.

(2) An assistant municipal valuer—
(a) must be a person registered as a valuer, an associated valuer or a valuer in
training in terms of the Property Valuers Profession Act, 2000; and

(b) may not be a councillor of that municipality.

Prescribed declaration

34. Before assuming office, a municipal valuer or assistant municipal valuer must—
(a) make the prescribed declaration before a commissioner of oaths regarding the
performance of office; and
(b) lodge a certified copy of such declaration with the municipal manager.

Right to inspect property
35. (1) Subject to section 14 of the Constitution which restricts or prohibits entry, a
municipal valuer, assistant municipal valuer or a person authorised by the municipal
valuer may, between 07:30 am and 05:00 pm, enter upon and inspect any property that
must be valued for purposes of this Act.

(2) A municipal valuer or assistant municipal valuer may—
(a) make extracts from any document or information which that valuer
reasonably believes is necessary for the valuation; and
(b) in writing require the owner or occupier of the property, or the agent of the
owner or occupier, to provide that valuer with written particulars regarding the
property which the valuer believes are necessary for the valuation.

Conduct of valuers

36. (1) A municipal valuer or assistant municipal valuer—
(a) must disclose to a municipality any personal or any private business interest
that the valuer, or any spouse, parent, child, partner or business associate of
that valuer, may have in any property in that municipality, and must appoint an
ad hoc valuer to perform the valuation relating to that property;

(b) may not use the position as a municipal valuer or assistant municipal valuer
for private gain or to improperly benefit another person; and
(c) must comply with the Code of Conduct set out in Schedule 2 to the Municipal
Systems Act.

(2) A municipal valuer or assistant municipal valuer who is not an official of a
municipality must comply with the Code of Conduct as if that person is such an official.

(3) A municipal valuer or assistant municipal valuer who contravenes or fails to
comply with subsection (1) is guilty of misconduct and subject to dismissal as municipal
valuer or assistant municipal valuer.

(4) A decision to dismiss a municipal valuer or assistant municipal valuer in terms of
subsection (3) must be based on a finding by an enquiry conducted in terms of the
Labour Relations Act, 1995 (Act No. 66 of 1995).
(5) A municipal valuer or assistant municipal valuer who is not an official of a
municipality and who contravenes or fails to comply with subsection (1) is guilty of
misconduct, and is subject to his or her contract of employment being rescinded.

Protection of confidential information

37. A municipal valuer or assistant municipal valuer may not disclose to any person
any confidential information obtained in terms of this Act, and a person authorised by a
municipal valuer 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;
(b) for the purpose of carrying out the provisions of this Act;
(c) for the purpose of legal proceedings; or
(d) in terms of a court order.

CHAPTER 5

VALUATION CRITERIA

Valuation

38. (1) Property 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
(b) comparative, analytical and other systems or techniques may be used,
including aerial photography and computer-assisted mass appraisal systems
or techniques.

(3) If the available market-related data of any category of 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 approved by a
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.

General basis of valuation

39. (1) Subject to the provisions of this Act, the improved value of property must be
the amount the property would have realised if sold on the date of valuation in the open
market by a seller to a buyer.

(2) In determining the value of a property—
(a) the value of the property must reflect any licence or privilege relating to the
property; and

(b) the value of any improvement that was erected or is being used in
contravention of a condition of title or any legislation, including a provision of
a town planning or land use scheme, must be included as if the improvement
was erected and is being used lawfully.

Valuation of property in sectional title schemes

40. (1) When valuing a property which is subject to a sectional title scheme, the valuer
must determine the value of each sectional title unit in the scheme in accordance with
section 39.

(2) The value determined for each sectional title unit must include the value of—
(a) the undivided share in the common property apportioned to that unit in
accordance with its participation quota;
(b) any allocation to that unit of an exclusive use area; and
(c) any other interest pertinent to the unit.

(3) In this section, a word or expression to which a meaning has been assigned in the
Sectional Titles Act has the same meaning.

CHAPTER 6

VALUATION ROLLS

Contents of valuation rolls

41. (1) A valuation roll must list all rateable property in the municipality, subject to
section 27(2).

(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 physical address of the property;
(d) the size of the property;
(e) the [improved] value of the property;
(f) the name of the owner;
(g) the postal address of the owner; and

(h) any other prescribed particulars.

Public notice of valuation rolls

42. A municipal valuer must submit the valuation roll to a municipal manager, and
that municipal manager must within 21 days of receipt of the roll—
(a) publish in the prescribed form in the provincial Gazette, and once a week for
two consecutive weeks in a newspaper circulating in the municipality, a
notice—
(i) stating that the roll is open for public inspection for a period stated in the
notice, which may not be less than 30 days from the date of publication
of the last notice;
(ii) inviting every person who wishes to lodge an objection in respect of any
matter in, or omitted from, the roll to do so in the prescribed manner
within the stated period; and
(b) serve on every owner of property listed in the valuation roll a copy of the
notice referred to in paragraph (a) together with an extract of the valuation roll
pertaining to that owner’s property.

Inspection of, and objections to, valuation rolls

43. (1) Any person 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
(b) lodge an objection with the municipal manager against any matter appearing
on or omitted from the roll.

(2) An objection in terms of subsection (1)(b) must be in relation to a specific
individual property and not against the valuation roll as such.

(3) [Amunicipal] A municipal manager must assist an objector to lodge an objection if that objector
is unable to read or write.

(4) A municipal council may also lodge an objection with the municipal manager
concerned against any matter appearing on, or omitted from, the roll.

(5) A municipal manager must, without delay, submit all objections to the municipal
valuer, who must decide and dispose of the objections in terms of section 44.

(6) The lodging of an objection does not defer liability for payment of rates beyond
the date determined for payment.

Processing of objections

44. A municipal valuer must—
(a) consider objections in accordance with a procedure that may be prescribed;

(b) decide objections on facts, including facts submitted by an objector, and, if the
objector is not the owner, by the owner; and

adjust the valuation roll in accordance with the decisions taken.

Adjustments to valuation rolls

45. (1) Any adjustments made to a valuation roll in terms of section 44(c), takes effect
on the effective date.

(2) If an adjustment in the valuation of a property affects the amount of the rate
payable on that property, a municipal manager must—

(a) calculate—
(i) the amount actually paid on the property since the effective date; and
(ii) the amount payable in terms of the adjustment on the property since the
effective date;
(b) recover from, or repay to, the person liable for rates the difference determined
in terms of paragraph (a).

Compulsory review of decisions of municipal valuer

46. If a municipal valuer adjusts any valuation following an objection by more than
10 per cent upwards or downwards—
(a) a municipal valuer must give written reasons to a municipal manager; and
(b) that municipal manager must submit to the relevant valuation appeal board
that municipal valuer’s decision, the reasons for the decision and all relevant
documentation for review.

Notification of outcome of objections and furnishing of reasons

47. (1) A municipal valuer must, in writing, notify every person who has lodged an
objection, and also the owner of the property concerned, if the objector is not the owner,
of—
(a) the valuer’s decision; and
(b) any adjustments made to the valuation roll following the decision.

(2) Within 30 days after such notification, such objector or owner may, in writing,
apply to that municipal valuer for the reasons for the decision.

(3) The municipal valuer must, within 30 days after receipt of such application,
provide the reasons for the decision in writing, after payment of a prescribed fee.

Right of appeal

48. (1) An appeal to an appeal board against any decision may be lodged in the
prescribed manner where—
(a) an objector is not satisfied with a decision of a municipal valuer;
(b) an owner of a property is affected by such a decision; or
(c) the municipal council concerned is affected by such a decision.

(2) An appeal by—
(a) an objector must be lodged within 30 days after the date on which the written
notice referred to in section 47(1) was posted to the objector or, if the objector
has requested reasons in terms of section 47(2), within 14 days after the day
on which the reasons were posted to the objector;
(b) an owner of such property must be lodged within 30 days after the date on
which the written notice referred to in section 47(1) was posted to the owner
or, if the owner has requested reasons in terms of section 47(2), within 14 days
after the day on which the reasons were posted to the owner; or

(c) a municipal council concerned must be lodged within 30 days after the date on
which the decision was taken.

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

CHAPTER 7

VALUATION APPEAL BOARDS

Establishment of valuation appeal board

49.
The MEC for local government must, by notice in the provincial Gazette,
establish as many valuation appeal boards in the province as may be necessary, but not
fewer than one in each district municipality and each metropolitan municipality.

Functions

50. The functions of an appeal board are—
(a) to hear and decide appeals against the decisions of a municipal valuer
concerning objections to matters appearing on, or omitted from, the valuation
roll of a municipality in the area for which it was established in terms of
section 49; and

(b) to review decisions of a municipal valuer submitted to it in terms of section
46.

Composition

51. (1) An appeal board consists of—
(a) a chairperson, who must be a person with legal qualifications and sufficient
experience in the administration of justice; and
(b) not fewer than two and not more than four other members with sufficient
knowledge and experience of the valuation of immovable property and
methods of valuation.

(2) The chairperson and members of an appeal board are appointed by the MEC for
local government giving due consideration to the gender balance of the valuation appeal
board.

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

Disqualifications

52. (1) The following persons are disqualified from membership of an appeal board:
(a) An unrehabilitated insolvent;
(b) a person under curatorship;
(c) a person declared to be of unsound mind by a court of the Republic; or
(d) a person who, after 24 April 1994, was convicted of an offence and sentenced
to imprisonment without an option of a fine for a period of not less than 12
months.
(2) [Adisqualification] A disqualification in terms of subsection (1)(d) ends five years after imprisonment
has been completed.

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

Term of office

53. The term of office of members of an appeal board is four years, but members are
eligible to be reappointed.

Conditions of appointment

54. (1) The Minister must, after consultation with the MECs for local government,
determine the conditions of appointment of members of an appeal board.

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

(3) The municipality or municipalities for which an appeal board was established in
terms of section 49 must remunerate the members of the appeal board in accordance
with their conditions of appointment and the directions of the MEC for local
government.

Conduct of members

55. (1) A member of an appeal board—
(a) must perform duties of office in good faith and without fear, favour or
prejudice;
(b) must disclose any personal or any private business interest that that member or
any spouse, parent, child, partner or business associate of that member may
have in any matter before the appeal board and must withdraw from the
proceedings of the appeal board, unless the board decides that the member’s
interest in the matter is trivial or not relevant, and announces its decision in
public at the first available sitting of the board;
(c) may not use the position or privileges of a member for private gain or to
improperly benefit another person; or
(d) may not act in any other way that compromises the credibility, impartiality,
independence or integrity of the appeal board.

(2) [Amember] A member of an appeal board who contravenes or fails to comply with subsection
(1) is guilty of misconduct.

Termination of membership

56. (1) A person ceases to be a member of an 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 may remove from office a member of an appeal
board but only on the grounds of misconduct, incapacity or incompetence.

(3) A decision to remove a member of an 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 an appeal board who is under investigation
in terms of subsection (3).

Alternates

57. The MEC for local government may appoint alternate members of an appeal
board, when a member—
(a) is absent; or
has vacated office.

Meetings

58. (1) The chairperson of an appeal board decides when and where the board meets,
but must convene a meeting if a majority of the members of the board request him or her,
in writing, to convene a board meeting at such time and such place set out in the request.

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

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

Administrative assistance

59. (1) An appeal board may require a municipality whose valuation roll is under
consideration to provide it with the necessary office accommodation and other
administrative assistance, including staff for the board.

(2) [Amunicipality] A municipality whose valuation roll is under consideration is liable for the costs of an appeal board.

Procedures

60. An appeal board may determine its internal procedures subject to any procedures
that may be prescribed for its proceedings to dispose of appeals.

Decisions

61. A question before an appeal board is decided by a supporting vote of at least a
majority of the members of the appeal board.

Decisions affecting valuation rolls

62. (1) A municipal valuer must adjust the valuation roll in accordance with the
decisions taken by an appeal board.

(2) Any adjustments made to a valuation roll in terms of subsection (1) takes effect on
the effective date.

(3) If an adjustment in the valuation of a property affects the amount of the rate
payable on that property, a municipal manager must—
(a) calculate—
(i) the amount actually paid on the property since the effective date; and
(ii) the amount payable in terms of the adjustment on the property since the
effective date; and

(b) recover from, or repay to, the person liable for rates on that property the
difference determined in terms of paragraph (a).

Orders as to costs

63. When an appeal board gives its decision it may—
(a) issue an order with regard to costs that do not exceed an amount equal to the
costs between party and party calculated in accordance with the highest scale
applicable in civil cases in a court established for a district in terms of the
Magistrates’ Courts Act, 1944 (Act No. 32 of 1944); and
(b) order any person whose appeal or opposition to an appeal is, in its opinion, in
bad faith, or frivolous, to compensate the municipality concerned in full or in
part for the fees and allowances of appeal board members and other costs
incurred by a municipality in connection with the appeal.

Committees of appeal boards

64. (1) The MEC for local government may authorise an appeal board to establish one
or more committees to assist it in the performance of its duties.

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

(3) An appeal board—
(a) must determine the duties of a committee;
(b) must appoint a chairperson and other members of a committee;
(c) may authorise a committee to co-opt advisory members within limits
determined by the board;
(d) may remove a member of a committee from office at any time; and
(e) may determine a committee’s procedure.

(4) An appeal board which established a committee may dissolve that committee at
any time.
(5) Section 54, read with the necessary changes as the context may require, applies to
the conditions of appointment of committee members who are not members of an appeal
board.

Right to inspect

65. (1) Subject to the Constitution and any other law that restricts or prohibits entry,
a member of, or any other person authorised by an appeal board may, between 07:30 am
and 5:00 pm, enter upon and inspect any property that is the subject of an appeal or
review.

(2) A member of, or any other person authorised by an appeal board may—
(a) make extracts from any document or information which that member or
person reasonably believes is necessary for the valuation; and
(b) in writing, require the owner or occupier of that property, or the agent of the
owner or occupier, to give that member or person written particulars regarding
that property which that member or person reasonably believes are necessary
for the valuation.

Protection of confidential information

66. A member of, or any other person authorised by, an 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;
(b) for the purpose of carrying out the provisions of this Act;
(c) for the purpose of legal proceedings; or
(d) in terms of a court order.

Powers of appeal boards

67. (1) An appeal board may—
(a) by notice, summon a person to appear before it—
(i) to give evidence; or
(ii) to produce a document available to that person and specified in the
summons;
(b) call a person present at a meeting of an appeal board, whether summoned or
not—
(i) to give evidence;
(ii) to produce a document in that person’s custody;
(c) administer an oath or solemn affirmation to that person;
(d) question that person, or have that person questioned; and
(e) retain for three years a document produced in terms of paragraph (a)(ii) or
(b)(ii).

(2) [Aperson] A person appearing before an appeal board, whether summoned or not, may at his
or her own expense be assisted by a legal representative.

(3) (a) [Aperson] A person summoned to appear before an appeal board is entitled to witness fees paid 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 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).

Proceedings by, or against, appeal boards

68. (1) Legal proceedings by, or against an appeal board may be instituted in the name
of the board.

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

CHAPTER 8

SUPPLEMENTARY VALUATIONS

Supplementary valuations

69. (1) A municipality may, whenever necessary, 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 valuation roll;
(b) included in a municipality after the last general valuation;
(c) subdivided or consolidated after the last general valuation;
(d) of which the [improved] value has substantially increased or decreased for any
reason after the last general valuation; or
(e) substantially incorrectly valued during the last general valuation.

(2) For the purposes of subsection (1), the provisions of Part 2 of Chapter 4 and,
Chapters 5, 6 and 7, read with the necessary changes as the context may require, are
applicable except that—
(a) a municipal valuer who prepared the valuation roll may be appointed for the
preparation and completion of the supplementary valuation roll; and
(b) the supplementary valuation roll takes effect on the first day of the month
following the completion of the public inspection period required by section
42.

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

(4) [Arate] A rate on rateable property for which a supplementary valuation roll was prepared
takes effect from the date the supplementary roll takes effect.

CHAPTER 9

MISCELLANEOUS MATTERS

National monitoring and reporting

70. (1) The Minister may monitor, and from time to time investigate and issue a public
report on, the effectiveness, consistency, uniformity and application of municipal
valuations for rates purposes.

(2) The investigation may include—
(a) studies of the ratio of valuations to sale prices; and
(b) other appropriate statistical measures to establish the accuracy of the
valuations, including the relative treatment of higher value and lower value
property.
(3) Investigations may be undertaken for—
(a) individual municipalities;
(b) individual provinces; or
(c) the country as a whole.

Regulations

71. (1) The Minister may make regulations not inconsistent with this Act
concerning—
(a) any matter that may be prescribed in terms of this Act;
(b) the preparation, contents, adoption, and enforcement of a municipal rates
policy;
(c) the manner in which rates referred to in section 18 must be phased in and the
criteria that municipalities must take into account;
(d) the property register;
(e) the form and contents of any document referred to in this Act, including any—
(i) declaration;
(ii) authorisation;
valuation roll;

(iv) objection to a valuation;
(v) appeal against a decision of a municipal valuer; and
(vi) notice;
(f) the procedure that must be followed in connection with—
(i) appeals to an appeal board, including the procedure to lodge, oppose,
adjudicate and dispose of such appeals; and
(ii) reviews by an appeal board of decisions of municipal valuers;
(g) the matters for which, or circumstances in which, an appeal board may,
condone non-compliance with a procedural requirement of this Act;
(h) the giving of reasons by an appeal board for its decisions;
(i) the funding of appeal boards by municipalities;
(j) inquiries by investigating tribunals to establish alleged misconduct by, or
alleged incompetence of, members of appeal boards;
(k) inquiries by municipalities to establish alleged misconduct by, or alleged
incompetence of, municipal valuers or assistant municipal valuers;
(l) fees payable for information or the issue of documents in terms of this Act;
and
(m) any matter which in the opinion of the Minister is necessary for the effective
carrying out or furtherance of the objects of this Act.

(2) The Minister may by regulation in terms of subsection (1) declare a contravention
of, or failure to comply with, any specific regulation an offence.

(3) Regulations, in terms of subsection (1) may treat different categories of property,
or different categories of property owners, differently.

Offences

72. (1) A person is guilty of an offence if that person—
(a) contravenes section 36(1)(a) or (b), 37, 55(1)(b) or (c),or 66;
(b) wilfully obstructs, hinders or threatens a valuer or a member of or person
authorised by an appeal board when the valuer, member or person performs a
duty or exercises a power in terms of this Act;
(c) wilfully gives information in an objection in terms of section 43(1)(b) or in an
appeal in terms of section 48 which is false in any material respect;
(d) after having been summoned in terms of section 67 fails—
(i) to be present at a meeting of an appeal board at the time and place
specified in the summons;
(ii) to remain present until excused; or
(iii) to produce a document specified in the summons;
(e) after having been called in terms of section 67 refuses—
(i) to appear;
(ii) to answer any question, except where the answer might incriminate him
or her; or
(iii) to produce a document in that person’s custody; or
(f) fails to comply with a request in terms of section 26(4) to give information or
wilfully supplies false or incorrect information in any material respect.

(2) [Avaluer] A valuer is guilty of an offence if that valuer is grossly negligent in the exercise of
the functions of office set out in section 31.

(3) A person convicted of an offence in terms of subsection (1) or (2) is liable to
imprisonment not exceeding two years or to a fine as may be prescribed in applicable
national legislation.

(4) A person convicted of an offence in terms of section 71(2) is liable to a fine or
imprisonment not exceeding six months.

Application of Act when in conflict with other laws

73. This Act prevails in the event of any inconsistency between this Act and any other
legislation regulating the levying of municipal rates.

Transitional arrangement: Valuation and rating under prior legislation

74. (1) Municipal valuations and property rating conducted before the commence-ment
of this Act by any municipality remain valid to the extent that they comply with
provincial and national legislation that existed before the commencement of this Act.

(2) Any reference in prior provincial legislation regulating property rates or
valuations to a ‘‘ local authority’’ , ‘‘ local council’’ , ‘‘ metropolitan local council’’ , ‘‘ rural
council’’ or ‘‘ other unit’’ of local government is deemed to refer to the metropolitan
municipality or local municipality within whose jurisdiction a property is located.

(3) In the case of District Management Areas, any reference in prior provincial
legislation regulating property rates or valuations to a ‘‘ local authority’’ or other unit of
local government is deemed to refer to the successor district municipality within whose
jurisdiction a property is located.

Transitional arrangement: Use of existing valuation rolls

75. (1) Until it prepares a valuation roll in terms of this Act, a municipality may—
(a) continue to use a valuation roll that was in force in its area before the
commencement of this Act; and
(b) levy rates against property values as shown on that roll.

(2) If a municipality uses valuation rolls in terms of subsection (1) that were prepared
by different predecessor municipalities, the municipality may impose different rates
based on the different rolls, so that the tax on similarly situated properties is similar.

(3) This section lapses four years from the date of promulgation of this Act, and from
that date any valuation roll that was in force before the commencement of this Act may
not be used.

Transitional arrangement: Liability of bodies corporate of sectional title schemes

76. (1) Section 9 does not apply in respect of rates levied against a valuation roll
prepared before the commencement of this Act.

(2) Section 22 does not affect the liability of a body corporate of a sectional title
scheme to a municipality, nor of the owner of a sectional title unit to the body corporate,
for property rates levied against a valuation roll prepared before commencement of this
Act.

Amendment of section 115 of Act 32 of 2000

77. Section 115 of the Municipal Systems Act is amended by the substitution in
subsection (1) for the words preceding paragraph (a) of the following words:
‘‘ (1) Any notice or other document that is served on a person in terms of this Act
or by a municipality in terms of any other legislation is regarded as having been
served—’’;

Amendment and repeal of legislation

78.
The legislation specified in the Schedule is—
(a) amended to the extent indicated in the third column of the Schedule; and
(b) repealed to the extent indicated in the third column of the Schedule.

Short title and commencement

79. This Act is called the Local Government: Property Rates Act, 2003, and comes
into operation on a date to be determined by the President by proclamation in the
Gazette.

SCHEDULE