MUNICIPAL PROPERTY RATES BILL, WORKING DRAFT (15 NOVEMBER 2003)
Part B of comments as requested by the chairperson, Mr Y Carrim
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: Municipal Property Rates Bill, 2003.
Index Clause 39: Method spelled incorrectly
Clause 8(3)(d) and (f) To be more consistent, it is suggested that the categories for farm property should be the same as that for smallholdings. As agreed commercial will be changed to business and commercial and should be used throughout the Bill.
See also 16(1)(c)
Clause 8(3)(i) Should "communal land" not be defined with reference to the communal Land Rights Act?
Clause 10(2) and (3) It is suggested that "valuation level" be replaced with "value"
Clause 13(2) It is suggested that "or" be replaced with "and" because very few people ever read the Provincial Gazette.
Clause 15A(1)(hA) It is suggested that it should be ".... a place of public worship ..." to prevent individuals to claim to be a religious community.
It is common for a religious community to have social activities at their place of worship. With the suggested wording of "exclusively" only very few communities, if any, will qualify not to be levied a rate. The following is suggested: ".... religious community, and any related social activities of the religious community concerned, including....."
Clause 15A(2)(b) The property referred to in this clause will not be reflected in the valuation roll. Clause 69 does not make provision for the valuation of this "type" of property and provision should be made. This property will then become a "newly rateable property" and rates will have to be phased in. Is it the intention?
Clause 20(4) The website may not have the capacity to accommodate this information.
Clause 21(3) The property on which the scheme was established does not "exist" anymore and therefore this clause is unnecessary.
Clause 35A (a) At the end of the paragraph the word "valuating" is used. No such word could be found in the Oxford dictionary and it is suggested that the word "valuing" should be used. See also 35A(c)
Clause 41(2)(d) It is suggested that "size" should be replaced with "extent".
Clause 48(2)(b) "were" at end of second line should be deleted.
Clause 61(2) It is suggested that "...of the board." at the end of the sentence be replaced by"... present at the hearing"
Clause 61(3) "member presiding" at the end of the first line should be changed to "chairperson" to be in line with the amended clause 58(3)
Clause 69 As it was agreed that properties, for which supplementary valuations were made, would be rated retrospective, care should be taken that all properties are treated fair and equitably. Our comments on the minutes of the subcommittee meeting of 18 November 2003 stipulated that a supplementary valuation roll should be compiled after the conclusion of a financial year. In the proposed clause 69(2) the impression may have been created that the number of supplementary rolls will be limited to the number of financial years of the term for the valuation roll. There should be no link to the term of the valuation roll.
Retrospectivity should be limited to 3 years. Supplementary valuations could be affected up to a maximum of 3 years after the term of the roll has expired.
To accommodate the above the following is suggested:
"69. (1) A municipality must cause a supplementary valuation to
be made 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 market 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) Supplementary valuations must be as at the date of valuation that applied to the last general valuationapplicable to the supplementary valuation roll. (3) After the conclusion of a financial year, the municipal valuer must prepare a supplementary valuation roll of all rateable property valued in terms of subsection (1).
(4) For the purpose of subsection (1) the provisions of Chapter 3, 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) the amount due for rates in respect of rateable property for which a supplementary valuation has been made in terms of subsection (1), is payable in the case of rateable property referred to in –
subsection (1)(a) or (e), as if such omission or error had not been made; or
subsection (1)(b), (c) or (d), with effect from the date the event referred to therein
occurred,
and is payable for the financial year concerned in the case of paragraph (i), by the person who was the owner on the day contemplated in section 23(2) and, in the case of paragraph (ii), by the person who was the owner on the date referred to therein; and (b) the date contemplated in (a) may not be more than 3 years from the day the supplementary valuation is done by the municipal valuer; and (b)(c) a municipal valuer who prepared the valuation roll may be appointed for the preparation and completion of the supplementary valuation roll.
Where the municipal valuer, before the provisions of subsection (3) have been complied with, has submitted the particulars referred to in section 41 in respect of any supplementary valuation made in terms of subsection (1) to the municipal manager, the municipality may, from the date of receipt of such particulars by the municipal manager, apply the rate contemplated in section 13 to such valuation for the applicable financial year."
General Please contact me if you need clarity on any aspect
Andre Zybrands
Tel (012) 460 8341 or 082 5549 763
25 November 2003