Part 1: Rates Policy

(2)

"Need to state that the object of the Bill is to provide a simpler and uniform system for the whole country".

LRC & CGE

2(1)

Must, not "may" levy rates, except where there is a divisional authority

IULVT

Concern that section does not specifically identify certain categories of persons, particularly social pensioners and the disabled to be considered. Possibly provide under categories (Clause 8).

SAMWU, LOGRA

3(1)

Envir Lobby

3(2)(a)

• Who defines "equitably"?
• Change "equitably" to equally". Equitable suggests a level of subjectivity, while the word equal would permit more objectivity when executing the legislation…"
• The Bill needs to spell out principles in terms of which an exemption, a rebate, or a reduction may be granted.
• The Bill needs to define an exemption, a rebate and a reduction and it needs to distinguish these terms from a "surcharge on fees" as contemplated in section 22(i)(a) of the constitution.

LRC

3(2)(d)

Argue that Muslim community was/is part of broader historically disadvantaged and therefore further burden should not be placed on them through rating of mosques and religious educational justifications.

MJC

LRC

3(2)(f)

Guidelines for local economic development to be set in collaboration with Finance Ministry.

3(2)(g)

How can this happen without valuing the applicable property?

Prof. Franzsen

3(2)(h)

Additions suggested "take into account the effect of rates on encouraging sound management and conservation of natural resources and sustainable land use; and

Envir Lobby

3(2)(i)

"Take into account the effect of rates on promoting the conservation of Threatened Ecosystems as listed by the Cabinet member responsible for the Environment

Envir Lobby

3(3)

• Reinstate national framework outlined in previous drafts which can guide onto exemptions or allow the Minister to promote guidelines to encourage sustainable development and landuse, in consultation with Ministers of Agriculture, EA & Tourism, Water Affairs and Forestry.
• National Framework MUST be prescribed – and deal with impact on agriculture.

FFC, FEDUSA, LRC, SACOB, COSATU, AgriSA

3(3)

The Bill is a regulatory Framework aimed at standardising procedures. However, the validity of 3(3) is questioned.

4

"…it is arguable that Clause 4 of the Bill is…a clause which contains provisions contemplated in section 76(1) of the Constitution read with sections 76(3)(d), 195(3) of the Constitution and read further with Chapter 4 of the Municipal Systems Act"

KZN Dept TLA

*43(1)(a)

Extend distribution of draft policy display to 30 days and make provision for after hours inspections at convenient local community centres and for all information, both past and current, be freely available on the internet.

COSATU, Prof Franzsen

5(1)

Add "when applying a new or supplementary valuation roll prior to implementing the annual budget.

IULVT

6(2)

Concern regarding categorisation by municipalities.

Telkom

6(2)(a)

Reference to by-laws misleading should read "different categories of property subject to section 16 (1) (a)", and

SALGA, Prof Valuers

Part 2: Levying of Rates

7(1)

Change sentence to read "A municipality must, subject to subsection (2), levy rates on all rateable property in its areas.

IULVT

7(2)

• Where legal tenure is insecure, the suggestion is that it be treated as if it qualifies in terms of Section 15(2).
• Exempt land subject to land claims as it meets criterion of being "property of which tenure is legally insecure as a result of past racially disseminatory laws"
• "…if tax on agricultural land is to be imposed all farmers involved in agriculture should be treated alike".

TAU-SA

7(2)(a)(i)

• Amend "of which the municipality is the owner, subject to paragraphs c(vii) and (viii) of the definition of "owner"

Prof Valuers

7(2)(a)(ii)

The provision should be scrapped. Only "land" as registered in the Deeds Office should be rateable as the tenure to that land is considered to be secure.

LRC

7(2)(a)(iii)

Delete the provision because it will be very difficult for a municipality to determine the cut off point between very insecure and less insecure tenure.

LRC & CGE

7(3) (New)

Add "The rates are a charge upon the property, and, subject to the provisions of this Act, are payable by the owner"

Shepstone & Wylie

8

A separate category of property be added called "land subjected to legislative prohibition of use" and that, in terms of clause 15(2) of the Bill, it is listed as category of land that municipalities cannot levy property rates on.

KWANALU

8(2)(d)

• Want "or special rating area" added.
• Provision should be made for temporary relief or disaster areas

IULVT

8(2)(e)

New sub-clause "a special rating area may be created in which additional rates may be charged to amortize new infrastructure that adds considerably to the value of land."

IULVT

8(3)

Appeal for categories referred to, to be further clarified and for criteria which determines these categories.

Inst of Est Agents, TAU, SALGA, Coalition of Trad. Leaders, Forestry SA, SANParks, NAFU, SACOB

8(3)[c]

Because use of terms like "commercial" can be ambiguous, rather use "business properties". Possibly address through guidelines.

Prof Valuers

8(3)(e)

If rates is to be imposed on landowners it should be based on the value of the service supplied, not on the market value of the farm.

8(3)(f)

Expand agricultural land categories or classification. "Classification will have to take into account the type of land use, the level of productivity, climate, and other factors that charaterise the annual yields from the land. Current market values do not reflect the taxable capacity of agricultural land and a more accurate index of that capacity would be its capitalized productivity value".

SACOB

8(3)(h)

"Non-formal" is not defined. "Informal is commonly used and understood.

SALGA

8(3)(i)

"Give clear indication whether municipalities will be able to tax tribal and other forms of communal land, simply because the Communal Land Rights Bill is not in line with the Property Rates Bill."

"…In principle opposed to the idea or notion that property in traditional communities should be levied municipal rates in the same way as property that is in urban areas."

Coalition of Trad Leaders of SA

8(3)(h) and (i)

Are both mainly residential properties and subject to section 16, different rates cannot be levied.

WCDPLG

8(3)(l)

Add "and threatened ecosystems"

9

Concern that there may be a substantial difference in the rates levied in respect of individual sectional title unit …. rated according to market value, as opposed to rates levied and allocated i.t.o. the Participation Quota.

Law Soc SA

9,*22

Suggestion that retirement villages and time share schemes be treated similarly to sectional title schemes and be individually rated.

M. Giliomee

10

Add point 10(3) "A minimum of 2c in the Rand should be levied on all land values."

IULVT

10(1)

Objection to the basis of property taxation – suggestion of using a rental based approach rather than market value, which is considered to be unconstitutional. Further argue that rates is a consumptive tax not a wealth tax.

RAG

10(1)

Want property rating to be based on a system of land rents.

P. Meakin

10(1)(a)

A rate levied on property must be – an amount in the rant based on the value of the property as reflected in the current valuation role of a municipality.

Prof Valuers

10(1)(a)

Suggest that the rate must be based on the land (site) value, not the improved value.

IULVT

10(1)(a)

Suggest that the "ability to pay" principle should be paramount.

RAG

10(1)(a)

SACC

10(1)(b)

• "fixed" amount should be used instead of "flat" rate in accordance with international terminology.
• Ministerial prerogative could intrude on constitutional autonomy of local government.

AgriSA, Shepstone & Wylie

10(1)(b)

Unclear, needs redrafting.

Prof Franzsen

10(1)(b)

Subject of banding to be more seriously considered, relative to 15(2)(h) and the effect of central government taxation.

RAG, IULVT

10(1)[c]

Rate determined as provided for in section 15(3) when the category of the property is that of farm property used for agricultural purposes.

Bartlett Estates

10(2)

Set maximum property rate on agricultural land at 0.5% of the improved value of farm land.

KWANALU

11

Replace "may" with "shall".

S. Pachai

12(b)

"…is there not a case to be made for an exception to this general rule in the case of genuine factual errors in the valuation roll?"

Shepstone & Wylie

13 (2)

Delete "and as he or she may determine". This merely detracts from the main thrust of the issue which is that notices must also be placed at other points to which the public have access.

SAMWU, Forestry SA

13(2)(b)(i)

Use "to levy" rather than "levying"

Prof Valuers

13(2)(b)(ii)

Display of resolution in more accessible places

SANCO

13(2)(b)(iii) (New)

Add "specifying the rate randages approved for various categories of property and the final date for the payment of rates as determined by the council".

Shepstone & Wylie

14

The Powers of a Municipality to grant exemptions, reductions and rebates, without reference to a National Framework, was cause of much debate. There was a need expressed for a framework that is acceptable and uniformly understood by all stakeholders.

SALGA, SAPOA, AgriSA, FEDUSA, LOGRA, National House of Traditional Leaders, Coalition of Trad. Leaders, NAFCOC, COSATU, FCC, SACOB

14

Municipalities must specifically "include in their policies that those owners that maintain or improve on environmental services occurring on their property are to be considered as an exception and be granted a rebate or reduction in the rates payable on the property."

EZEMVELO KZN

14

Concern that this clause is open to municipal discretion and may result in situation where erven which are subject to public service infrastructure are not absolutely exempt creating problems of legislative interpretation and challenge.

Venn Diagnostics

14(1)

Delete the indefinite article "a" before "criteria, which is the plural form of "criterion".

KZN Dept TLA

14(1)(a) & (b)

"To ‘exempt the owner of a specific property’ from payment of rates or to grant to such owner a rebate or reduction…could be seen as favouring a particular individual. It is suggested that the words be deleted.

KZN Dept TLA

14(1)[c]

Criteria such as ability to pay and relative use of services must be developed on which exemptions will be based.

AgriSA

Part 3: Limitations on levying of rates

15(1)

Minister and Department of Foreign Affairs, State Law Advisor

15(1)

Provide a rate ceiling in the legislation. "In other countries where agricultural land is subject to rates they are generally set below 1%... Limitations on the taxes levied on properties can take the form of a maximum rate for certain specified purposes, and overall limits that establish a maximum aggregate rate. Ideally, it requires a combination of constitutional limitations of tax levels, statutory limitations and a strong budget system to control the amount of taxes levied on property"

SACOB

15(1)

Feel that paras (a), (b) and (c) could be prejudiced i.r.o. agriculture therefore recommend sliding scale or similar measure in respect of agricultural properties to contain impact of rates burden as well as to ensure similar treatment of agricultural properties throughout the country. DPLG disagrees.

Prof Valuers

15(1) read with 15(2)

Redraft so that 15(2) is a stand-alone subsection identifying non-rateable property.

Prof Franzsen

15(2)

Change to: "on property on which public service infrastructure"

Venn Diagnostics

15(2)

• Repeal section 11 of the Diplomatic Immunities and Privileges Act No.37 of 2001 in terms of section 78 of the Property Rates Bill and include a reference to the former in part 5, thereby abolishing the need for the government to refund the municipalities for losses due to the exemptions granted or limitation placed on their capability to levy taxes.
• DPLG feels these properties must be rated but that the SA Govt. should bear the costs.

Minister and Department of Foreign Affairs, State Law Advisor

15(2)

• Suggest inclusion of words "property used exclusively by an educational public benefit organisation", preferably in new sub-clause.

Forestry SA

15(2)(a)

Privately owned " public service infrastructure" should be exempt from property rates.

KWANALU

15(2)(e)

Reinstate national framework or let Minister give guidelines to municipalities on land use.

Bot Soc SA

15(2)(e)

• "rates on property belonging to a government, the United Nations and its Specialised Agencies or other organisation that are used for the official offices and official residences of the heads of their missions in South Africa and recognised as such in terms of section 12 of the Diplomatic Immunities and Privileges Act, Act No. 37 of 2001. DPLG disagrees.
• Include privately owned land that is incorporated into national or provincial parks but exclude any part of an area on which improvements have been erected for commercial and business purposes.
• Privately owned conservation and protected land should also be exempt from property rates.
• Any land declared as a national or protected area, excluding any part of such are on which improvements have been erected for commercial or business purposes.

Envir Lobby

15(2)(e)

• "The exclusion of private land from the exemption from rating…will undermine all efforts at establishing public-private partnerships for the expansion of the country’s national parks.
• "…exclusion of areas ‘used for commercial and business purposes’ does not take into account that SANParks is not a business and engages in commercial activity only in pursuit of a statutory function for the benefit of the nation as a whole…"The meaning of ‘areas used for commercial and business purposes’ is not defined…" The intention behind this clause insertion is uncertain.
• Any [State owned] land declared as a national or provincial protected area, excluding any [such] part of such area on which improvements have been erected[is used] for commercial or business purposes (latest version).

Envir Lobby

15(2)(g)

Extend the 10-year period for Land Reform Beneficiaries.

NLC

15(2)(g)

Change to " Residential property belonging to a land reform beneficiary for a period of ten years from the date on which such …"

Shepstone & Wylie

15(2)(g)

How will joint ventures between farmers and land reform beneficiaries be treated and what criteria were applied to calculate the particular period stated in the clause.

AgriSA

15(2)(h)

"…feels that this will prejudice home owners and that the exempted amount should be increased by CPIX on an annual basis, to avoid amount becoming too low".

FEDUSA

15(2)(h)

Add "This will be a lower amount if rates are based on Site Values or Composite Rating"

IULVT

15(2)(h)

• While the deduction is supported the loss of income must be provided for in the Division of Revenue Act. Otherwise smaller municipalities could suffer.

COSATU, SANCO, IULVT

15(2)(h)

"The arbitrarily selected…R15 000 will, in some instances, erode the rates base to such a degree as to render it meaningless. Unless national government is prepared to subsidise those municipalities almost entirely…"

Shepstone & Wylie

15(2)(j)

Add separate category of land which is exempt from the payment of property rates, namely: "land subject to legislative prohibition of use".

Forestry SA, KWANULU

15(3)(b)

Apply some criteria as in Clause 14 in terms of a specific rate limit. Clear out criteria and even an overall limit set on property rates on agricultural land will ensure increased compliance and buy-in from farming committee.

AgriSA

15(5)

Provide for appropriate consultation with the Minister of Agriculture and Land Affairs

SACOB

16(1)(a)

"…, except as provided for in section 8(3)(h) and (i), 10(i)(b), 18, 19(i) and 75". Provision will also have to be made for other possible exceptions.

WCDPLG

16(1)(b)

Erven if ratio is fixed, effective rate could still prove unaffordable to agricultural sector.

AgriSA

16(1)(c )

The term "unreasonable" is vague and subjective to interpretation. In practice it is based upon a concept of ability to pay".

SACOB

17

• Prefer reference to rate bands rather than limits since its is unclear whether limits are floors or caps.
• Suggestion of an inflation linked cap

FCC, SALGA

17

Limits on annual increases, coupled with ratio are supported but the criteria and responsible body for determining the prescribed ratio are not clear.

AgriSA

17(1)

Is this section not unconstitutional i.t.o. section 155(6) of the Constitution. The MEC and not the Minister should have power to cap rates, as capping is the outcome of monitoring which is a provincial function.

WCDPLG

17(3)

Stipulate "details of what may exempt a municipality from compliance".

Law Soc SA

18

• Appeal for compulsory phasing in this to be applied to avoid undue hardship
• Allow for phasing in for previously exempt properties and a period of grace for at least one year.
• "…the phasing-in period should be applicable only to residential property".

SALGA

18(1) & 18(3)

"…the word ‘property’, where it appears for the second time should be qualified by the insertion of the word ‘residential’…"

Shepstone & Wylie

18(4) AND 18(5)

Fundamental problem with notion that MEC has power to extend rate beyond a year. Either remove provision or grant to municipality under special conditions.

CCT

Part 4:Additional rates

19

CCT

19

• Additional rates cannot be levied on residential properties within the special rating area i.t.o. section 16(1)(a).
• Opposed to clause because of perceived entrenchment of disparities
• Concern that the pool may have to fund improvements themselves
• There is no definition of majority, is it a simple majority? By number? By Value? Of those present at a meeting? Of those responding in writing?
• Want clarity that special rating is only done after the formal evaluation has been completed.

SAMWU

19)1)(a)

Replace "define" with "determine" for consistency and to avoid problems of interpretation. "Determining" and "determines" a special rating area are used respectively in clauses 19(2) and 19(3).

KZN Dept of TLA, Shepstone & Wylie

19(2)(b)

Clarity need on what constitutes majority decision

SACOB

19(2)(c)

Suggestion to use ward committees rather than new structures

SALGA

19(4)

A municipality may allocate, to a maximum of 10% of the additional rates, a portion of the additional rates to cover his administrative and collection cost.

M. Giliomee

20

Add type of building, cost of original as well as alterations, dates

FFC

20

Rate Clearance: Bill needs to be brought in line with the Systems Act and that "Ordinance" be used as a reference point.

LRC

20(2)

Amend to provide that Part A of the register should list all properties within the municipal boundaries and should specify which of such properties are exempted from rates in terms of sections 15 and 7(2)(a).

KZN Dept of TLA

*20(4) see also 4(2) and 43(1)

The register should be accessible beyond office hours eg. Community centres, internet

LOGRA, FEDUSA, SANCO, Inst. of Est Agents, COSATU

20(5)

The meaning of the term "review" is uncertain. "The clause requires a measure of elaboration and should spell out how a review should be carried out.

KZN Dept of TLA

LIABILITY FOR RATES

21(1)

Reference to Systems Act places too high a burden on Municipalities.

CCT

21(1)

"…Cognisance must be taken of the fact that various rights are registered against immovable property. Examples of the rights include a bondholder; a lessee in terms of formalities in respect of Leases of Land Act Number 18 of 1969; and a buyer in terms of the Alienation of Land Act Number 68 of 1981…It is doubtful whether such right to levy rates can be aligned with the provisions of Section 36 of the Constitution…"

Banking Council, Law Soc SA, MacRobert Inc

21(2)

• Amend "Joint owners of property including sectional title scheme are jointly and severally liable for the amount due for rates.
• Concern about joint and several liability especially when owned by close corporation, private companies or Trust. The "clause excludes joint owners of property in a sectional title scheme from being jointly and severally liable for the amount due for rates. As sectional title units can be jointly owned, the reason for this exclusion is not apparent and it is suggested that it be deleted".

21(3)

Should the owner as per sub-section (1) fail to pay such rates any person who at any time thereafter become the subsequent owner of the property concerned, shall be liable for such rates

M. Giliomee

*22

Must concur with Sectional Title Act (1986)

SALGA, Inst. of Est Agents, Banking Council, SAPOA

*22

Include retirement villages and timeshare

M. Giliomee

22(1)

Delete

Prof Valuers

22(2)

Body corporates can own sections in a scheme – eg. Caretakers flat, utility rooms etc. Will these be exempt from rates?

Inst. of Est Agents

23(1)(a)

Propose that "the payments be equal amounts, and where an annual amount is paid, that should be done at the beginning of the financial year the rate is due". This would provide…"provide for the option of payment that enables municipalities to have some level of income certainty and predictability".

SALGA

23(2)(a) & (b)

Amend to provide for "on or before a day".

KZN Dept of TLA, Shepstone & Wylie

24(1)(b)

Amend to read "the date on or before which".

KZN Dept of TLA, Shepstone & Wylie

24(1)(c )

Basis of calculation needs to be defined/specified. Either municipality must furnish rate or actual calculation.

SALGA, Prof Valuers

24(2)

The fact that a person liable for the payment of a rate has not received an account sent by a municipality to that person’s physical address, as recorded in the municipal property register, does not affect that person’s liability to pay amount due. Prefer wording in November draft.

SALGA

24(2)

Clause 24(2) of the draft Bill dated 21 November 2002 is preferred.

KZN Dept of TLA

25(3)

• Concern regarding property rates outstanding being deducted from tenants. Tenants ending up as victims, particularly if rent includes a rates component.
• Telkom supports recovery from lessee
• Wants clause to be amended beyond "an amount" to "until the entire arrears amount has been settled"
• Concern over legality of this provision
• Review legality of this provision

KWANALU

25(4) (New)

Add "A municipality may deliver a notice to the tenant or occupier of a property referred to in this section, requiring such person to pay the amount of the rental or other consideration owed to the property owner, and such notice is deemed to have the effect of a cession of the amount owed to the owner by such person from time to time". This would strengthen the position of municipalities.

Shepstone and Wylie

26

Absentee owners on agricultural/arable land should be penalised.

NAFU

26(1)

What about situation where owner is simply absent. There appears to be no obligation to notify municipality.

WCDPLG

26(3)

• The Estate Agents act has been amended in 1998 (s21 of 90) and renamed Estate Agents Affairs Act
• How does this provision relate to the Insolvency Act and preference of creditors
• Suggestion of a new section covering seizure and lease or sale if owner is untraceable

M. Giliomee

Part 1: General

27(1)

Replace "intending to levy a rate on property" with "in accordance with this Act, cause"

IULVT

27(1)(a)

The clause "requires that a valuation be made of ‘all rateable properties’. It is suggested that a valuation be made of all properties in a municipality and that ‘rateable’ and ‘subject to subsection (2)’ be deleted. This will require the deletion of clause 27(2) and clause 2(1) will become clause 27".

KZN Dept of TLA, Shepstone & Wylie

27(2)

How will quantification of financial impact of exemptions in terms of 14(3) be carried out? What about revenue foregone in terms of Clause 15?

AgriSA

28

Nine months too short for a valuation.

CCT, Prof. Valuers

28(1)

Replace "period" with "date", as clause heading deals with "date of valuation".

Prof Valuers

Part 2: Municipal valuers

29(1)(a)

A valuation roll – takes effect as from the start of the financial year closest to completion of the public inspection period required by section 42. Concern that run over by one day could require a new date of valuation and valuation role.

SALGA, Prof Valuers

29(1)

Should read "After the completion of the public inspection period required by section 42 the municipal manager signs and certifies the valuation roll which than becomes the valuation roll for the municipality, subject to the provisions of sections 48 and 62. Neither this section nor section 42 states who sign and certify the valuation roll."

WCDPLG

29(1)(b)

Argument that supplementary valuation roll used for 2 years and that actual valuation roll only valid for 1 year

IULVT

29(1)(c)

A supplementary valuation role shall meet the requirements set out in clause 69

IULVT

29(2)

Four rather than five years

IULVT

30(1) & 30(2)

Recommends that "protection of the valuation officials [from retrenchment] should be entrenched in the Bill and that the Bill be amended to create internal capacity within municipalities".

IMATU

30(3)

Section 139 of the Constitution already grants these powers to the MEC’s, therefore this is a superfluous provision.

Inst. of Est Agents, FEDUSA, SAPOA, CCT

31(1)[c]

Submit the valuation roll to a municipality within the period agreed with the municipality.

Prof Valuers

31(1)(h)(New)

Add new clause "to provide for certification by the valuer that the valuation roll has been completed.

KZN Dept of TLA

31(2) & 31(3)

Recommends that "protection of the valuation officials [from retrenchment] should be entrenched in the Bill and that the Bill be amended to create internal capacity within municipalities".

IMATU

33

• Concern that costs to be awarded may prevent people from challenging valuation roles, impacting on the constitutional right.
• Include an experience requirement as well as qualifications

SALGA

33(1)(a)

Titles of "valuer" & "associated valuer" are obsolete in legislation. Suggestion that this be replaced with "professional as defined in Section 1"

Prof Valuers

33(2)(a)

Similarly, replace "valuer, an associated valuer or a valuer in training in terms of" by "professional or candidate as defined in Section 1 of

Prof Valuers

35(2)(b)

Insert a similar section as clause 35(f) of PRB 4 October 2000 to deal with Agricultural reality

AgriSA

36

Recommends that "these provisions be amended to read more unambiguous as it could become unenforceable against municipal valuers and assistant municipal valuers if they are not in the full time employment of a municipality. The Labour Relations Act…would not be applicable to a relationship created outside the ambit of the said Act".

IMATU

36(1)

Valuers to declare personal interests rather than have ad hoc valuer to value their property(ies).

Prof Valuers

36(5)

Change "rescinded" to "terminated".

IMATU

VALUATION CRITERIA

38(1)

"Since the Bill does not specify the valuations methods to be applied in any particular case for purposes of determining the rateable value of property, much is left to the discretion of each individual municipality…to counter arbitrary and inequitable application, the Bill should prescribe the valuation method applicable to each category of property or class of improvement".

Telkom

38(1)

Example made of how market valuation can be affected by a category of land being classified Heritage or Protected Area.

Forestry SA

38(2)(a)

Provide that all properties must be physically inspected "in order to check arbitrary and inequitable application", as was done in current ordinances.

Prof Franzsen

Telkom

38(2)(b)

The qualifications for valuers should be modified to include an experience qualification. Concern that the examples of techniques and tools are unnecessary, want this clause deleted.

Prof. Valuers, Prof. Franzsen

38(3)

Call for this clause to be deleted

Prof. Valuers

38 and 39

Distinguish between "productive value" and "improved value".

GrainSA

39(1)

Amend as follows: "… the amount the property would have realised if sold on the date of the valuation in the open market by a willing seller to a willing buyer" as this equates to the market value.

KWANALU

39(2)(a)

Amend to take into account effect of payment of rates on formerly unrated agricultural property.

Bartlett Estates

39(2)(a)

Amend to take into account factors which enhance value of property as well as those that detract from it, including property rate itself.

KWANALU

39(2)(b)

Will this condone illegal usage? Are the valuers going to check each title deed to establish which conditions of title are being contravened?

Inst. of Est Agents

*40

Provide "that any encumbrances on the property, e.g. servitudes, should also be reflected".

KZN Dept of TLA

39(2)(b)

Link contravention to use of the property not the improvements

Prof Valuers

39(2)[c]

Add new clause as follows: "[c] the value of agricultural property must be its value in existing use without any regard to potential uses which may result in higher value.

KWANALU, Bartlett Estates

38 – 40

Valuation criteria should allow property rates to be reduced where alien vegetation occurs

Bot Soc of SA

41(1)

Delete "rateable" and "subject to section 27(2)" See comments in clause 27(1)(a)

KZN Dept of TLA

41(2)

How would information on properties within informal settlements and tribal authority areas be reflected.

KWANALU

41(2)(f)

In the case of a partnership close corporation or private company, full details will be given of all members or partners together with percentage holdings with full details of residential address and ID number.

IULVT

41(2)(h)

Any other prescribed particulars – should also allow for unspecified comments like explanatory notes.

Prof Valuers

41(2)(g)

The provision should be deleted. It is not seen to be relevant, because the postal address of the owner must be in the Debtors ledger of a municipality.

SALGA

42

Replace "a" before municipal manager with "the".

KZN Dept of TLA

42(b)

Notify in writing every owner of property reflected in the valuation roll the copy of the notice referred to in paragraph (a) together with an extract of the valuation roll pertaining to that owner’s property.

*43(1)(a) see also *4(2) and *20 (4)

Access to the valuation role should stretch beyond office hours

Inst. of Est Agents, LOGRA, SANCO

43(1)(b)

Replace "appearing" with "reflected". Lodge an objection with the municipality manager against any matter reflected on or omitted from the roll.

SALGA, Prof Valuers

43(5)

Replace "without delay" with "within 14 days". (See comments in 13(2)).

KZN Dept of TLA

44(a)

"It would appear…that the municipal valuer would be the judge of his own valuation. The current position is that a valuation board, consisting of legal and valuation practitioners, considers and decides upon objections against valuations. These valuation boards should be retained, as it will prevent subjective decisions".

IMATU

44(b)

Decide objections on facts, including facts submitted and substantiated by an objector, and, if the objector is not the owner, by the owner.

SALGA/Prof Valuers

44(b)

Include "and substantiated" after submitted

Prof Valuers

44(c )

Suggest that adjustments must only be made where objections were lodged

Prof Valuers

45(2)

Replace "of the rate" with "due for rates"

Prof Valuers

45(2)(a)(ii)

"The amount due for rates on that property payable in terms of adjustments on the property since the effective date".

SALGA

45(2)(b)

Add "plus an equitable rate of interest payable for the relevant period the amount recovered or repaid has been owing."

Bartlett Estates

46

"In the light of…recommendation…in section 44, section 46 must therefore be amended to be in line with…comments as set out in…" section 44.

IMATU

47(3)

"The wording…indicate substantial limitations on the right of an objector to information regarding the relevant objection, which could be an infringement of various provisions of the Constitution (e.g. property rights and access to information)".

IMATU

48

Right of appeal must be accessible and affordable to enable organisations to appeal against inconsistent application of policy.

SACC

48(2)(a) and (b)

Recommend references to 14 days be increased to 30 days to account for possible postal delays, especially in rural areas.

Prof Valuers

48(2)(a)

There are considerable problems with normal postal delivery, and in order to avoid any disputes, notices should be sent out by registered post.

Inst. of Est Agents

VALUATION APPEAL BOARDS

49

• Consider establishment of national valuation agency.
• 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 at least one each District municipality and each metropolitan municipality.

SALGA

50(a)

To hear and decide appeals against the decision of a municipal valuer concerning objections to matters reflected on or omitted from the valuation roll of a municipality in the area for which it was established in terms of section 49.

SALGA

51

Include a community representative

SANCO

51(1)(b)

Amend so that at least 50% of the members are professionals as defined in section 1 of the Property Valuers Profession Act, 2000

Prof Valuers

51(2)

The use of gender as a selection criterion is unacceptable. All appointments should be made on the basis of competency and practical experience.

Inst. of Est Agents

52

Councillors or people with municipal arrears should be disqualified from membership of appeal boards.

LOGRA,SANCO, COSATU

52(d)

Replace with A person who has previously been convicted of a criminal offence and sentenced to imprisonment. (Wording to exclude pre-1994 political convictions).

COSATU

54(3)

Want remuneration to be "at least" what is in the Bill. Amend to read "The municipality or municipalities for which a valuation appeal board was established in terms of section 49 must remunerate the members of the board at least in accordance with their conditions of appointment and the directions of the MEC for local government".

SALGA, Prof Valuers

56

There should be an inclusion that any member of the Board absent from more than 2 meetings of the Appeal Board is automatically disqualified from membership of the Board.

Inst. of Est Agents

57

Want alternate chairperson (with proviso of appropriate qualifications) to be appointed at same time.

Prof Valuers

58

(legal and admin qualifications)

SALGA/Prof Valuers

58(3)

"…should apply ‘subject to the provisions of section 51 (1)(a)"

KZN Dept of TLA, Shepstone & Wylie, SALGA

58(4) (New)

Quorum should be provided for.

Prof Valuers

61

Provision should be made that "a question of law should be decided by those who have the qualification to do so".

Shepstone & Wylie

62(3)

If an adjustment in the valuation of a property affects the amount due for rates payable on that property, the municipal manage must …

SALGA, Prof Valuers

62(3)(b)

Add: "plus an equitable rate of interest payable for the relevant period the amount recovered or repaid has been owed."

Bartlett Estates

63

Suggestion that provision be for the payment of a nominal administration fee should an appeal be found to be in bad faith or frivolous.

KZN Dept of TLA

63(b)

There should be an expressed duty to ensure the wording reflects the right to be heard.

WCDPLG

64

"Sub-committees should also be chaired by persons with legal qualifications if they are to have delegated power to make decisions binding on the board".

Shepstone & Wylie

65

Suggest that clause 65(1) be amended "subject to section 14 of the Constitution, which"… Delete (and any other law that)

Prof Valuers

68

Deadline should be set for hearing of appeals.

Law Soc SA/CGH

SUPPLEMENTARY VALUATIONS

69(1)(d)

• Guideline percentage increases and decreases in the value of a property be set, over which a Municipality must undertake supplementary valuation.
• Procedures should allow for dynamic nature of land values in agriculture currently being influenced by a host of factors like crime and violence.
• Of which the improved value has substantially increased or decreased for any reason after the last general valuation…
• Do not want economic slowdowns to create need for supplementary valuation
• Suggestion of guideline percentage increases or decreases over which a Municipality MUST undertake such a valuation
• Delete "for any reason" and insert "by reason of any cause particular to such property"

Prof Fanzsen

69(2)(a)

Amend so that different valuer to one who conducted the general valuation be appointed to undertake a supplementary valuation in cases where a property was, in terms of clause 69(2)(e) "substantially incorrectly valued during the last general valuation"

KWANALU

69(3)

Prof. Valuers

69(4)

A rate on rateable properly for which a supplementary valuation roll was prepared takes effect as from the date the registration of the property in the Deeds Office takes effect.

SALGA

MISCELLANEOUS MATTERS

70(1)

• Request that the Minister "must" rather than "may" monitor the efficacy of municipal valuations for rates purposes.
• Reconsider establishment of independent government valuation agency to perform quality control (list of functions suggested)
• Could this not be unconstitutional in terms of municipal authority? (sec 155(6) of Constitution)

WCDPLG

70(1)

Wording "from time to time" to vague. Recommend investigations to be undertaken and a report produced every 4 years (to coincide with validity of Municipal valuation rolls).

KWANALU

71

Necessary, but subject to sec 229 2(a) of Constitution and preparation, contents, adoption and enforcement of a municipal rates policy

AgriSA

71(1)

Ministerial interference must be kept to a minimum as rates should essentially be based on local conditions.

KWANALU

71(4)

KWANALU

72(1)(f)

Include ref to "35(2)(b) or 65(2)(b)" after 26(4)… These are also clauses dealing with information

Prof Valuers

74(I)

"Municipal valuations and property rating conducted prior to 30 June 2002 by any Municipality are valid to the extent that they comply with prior provincial and national legislation that existed before the commencement of this Act"

KWANALU

75 & 76

Reduce the period in 72(2) to two years. Concern that these sections delay intention of this Act for a period of up to four years from the promulgation of this Act…"

Banking Council

75(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 amount due for similarly situated properties is similar. (Delete "tax")

SALGA, KZN Dept of TLA

75(3)

Change "promulgation" to "commencement" to be consistent.

Prof Valuers

75(3)

Insert after "promulgation of this Act" the words "or on a date to be determined by the Minister/MEC whichever is the later"

KZN Dept TLA

77

• Amends 115 of Municipal Systems Act 32 of 2000 re further provision for serving of documents
• Deletion Sec 118(3) of Municipal Systems Act. "Section 118(3) contradicts section 118(1)(b) as (1)(b) places a two year cap for all amounts due in connection with that property for municipal service fee. In essence it is a preference over a mortgage bond registered against the property. Section 118(3) gives total blanket preference for amount due for municipal service fees, property rates, etc. and as such overrides the two years cap provided for in section 118(1)(b)".

Banking Council

78

Repeal section 11 of Diplomatic Immunities and Privileges Act, no 37 of 2001 – abolishing need for government to refund municipalities for losses due to exemptions granted or limitation placed on their capability to levy taxes.

Chief State Law Adviser, Dept of Foreign Affairs