NATIONAL TREASURY PROPOSED AMENDMENTS

MUNICIPAL FISCAL POWERS AND FUNCTIONS BILL [B9-2007]

CLAUSE 1

1. On page 3, in line 14, after "means the" to insert "municipality or the"

2. On page 3, in line 28, to omit paragraph (e)

3. On page 3, from line 31, to omit the definition of "municipal service" and to substitute:

"municipal service" means -

(a) any of the local government matters listed in Part B of Schedule 4 and Part B of Schedule 5 to the Constitution; and

(b) any function assigned to a municipality in accordance with section 9 or 10 of the Local Government: Municipal Systems Act, 2000 (Act No. 32 of 2000), identified by the Minister by notice in the Gazette;

4. On page 3, in line 44, to omit "section" and to substitute "sections 6, 8 or"

CLAUSE 3

5. On page 4, in line 19, after "(Act No.6 of 2004)" to insert ",and municipal base tariffs regulated under the Local Government: Municipal Finance Management Act, 2003 (Act No. 56 of 2003), the Local Government: Municipal Systems Act, 2000 (Act No. 32 of 2000), or sector legislation"

CLAUSE 4

6. On page 4, after line 31 to insert:

(3) The Commission must within three months from the date of any consultation referred to in subsection (2)(a)(ii) submit its views on the proposed municipal tax in writing to the Minister.

CLAUSE 5

7. On page 5, from line 20, to omit paragraph (b) and to substitute:

(b) by not later than six months after that notification or such longer period as may be necessitated in complying with section 10(4)(c), prescribe the regulations contemplated in section 6.

CLAUSE 9

8. On page 6, from line 35, to omit "of' up to and including "5" in line 36, and to substitute:

",where practicalities impede strict compliance with the norms and standards prescribed in terms of section 8, of his or her own accord or on application"

CLAUSE 10

9 On page 7, in line 27, after "Parliament" to insert "when in session"

SCHEDULE

10. In the third column, opposite Act No 56 of 2003, to omit item 2 and to substitute:

2. The substitution for subsection (6) of section 28 of the following subsection:

"(6) Municipal tax and tariffs may not be increased during a financial year [except when required in terms of a financial        recovery plan].".