The City has released the 2023 – 24 Draft budget which is now open for comment.
The Budget includes the Rates Policy which is required in terms of the criteria laid down in terms of Section 3 of the Municipal Property Rates Act (MPRA) and must be reviewed annually with the budget In terms of Section 4 of the MPRA before a municipality adopts its rates policy, the municipality must follow a process of community participation in accordance with Chapter 4 of the Municipal Systems Act.
The draft policy must be advertised publicly and the “…municipal council must take all comments and representations made to it or received by it into account when it considers the draft rates policy” (Section 5). A Rates Policy will set out the various categories of property some which are statutory and others that the municipality may add or amend. New categories have been added and amended Then Policy is attached as Annexure 5 to the Budget
https://www.appraise.co.za/wp-content/uploads/2023/04/Budget_2023-24_Ann5_RatesPolicy.pdf
The City has proposed the following property rates charges for the period commencing 1 July 2023 which is an extract from the draft tariff and feed and Charges Book (See Annexure 6 of the Budget Document)
“…
- PROPERTY RATES (reflected as rate-in-the- Rand):
The rate-in-the-Rand is multiplied by the municipal valuation of the property to calculate the annual rates amount that will be billed, subject to the rebates provided for in the Rates Policy and is zero-rated for VAT.
| PROPERTY CATEGORIES | RATE-IN-THE-RAND | |
| 1.1 | Residential Properties | R0. 006273 |
| 1.2 | Business and Commercial Properties | R0. 014742 |
| 1.3 | Industrial Properties | |
| 1.4 | Mining Properties | |
| 1.5 | Properties owned by an Organ of State and used for public service purposes | |
| 1.6 | Miscellaneous Properties | |
| 1.7 | Vacant land | R0.012546 |
| 1.8 | Agricultural properties | R0.001255 |
| 1.9 | Public Service Infrastructure properties (The City will not levy a rate on the first 30% of the market value as per the Valuation Roll) | R0. 001568 |
| 1.10 | Properties owned by an organisation – not for profit and used as an early childhood development facility | |
| 1.11 | Properties owned by an organisation – not for profit and used for youth development | |
| 1.12 | Properties owned by an organisation – not for profit and used as accommodation for the vulnerable | |
| 1.13 | Properties owned by an organisation – not for profit and used for an old age home | |
| 1.14 | Properties owned by an organisation – not for profit and used exclusively for amateur sport | |
| 1.15 | Properties owned by a Social Housing Regulatory Authority accredited Social Housing Institution and used for social housing | |
| 1.16 | Properties owned by war veterans’ associations and used for the welfare of war veterans | |
| 1.17 | Properties owned by PBO and used for specified public benefit activities | |
| 1.18 | Properties owned by a religious community and used for specified religious purposes | |
| 1.19 | Properties used for multiple purposes | per allocation |
| 1.20 | Cemeteries and Crematoria | R0.000000 |
| 1.21 | Properties owned by an organisation – not for profit and used for animal shelters | |
| 1.22 | Properties owned by an organisation – not for profit and used as a local community museum | |
| 1.23 | Nature conservation land | |
…”
(Extract from CITY OF CAPE TOWN’S 2023/24 DRAFT BUDGET, REVIEW OF THE INTEGRATED DEVELOPMENT PLAN (IDP) AND PROPOSED AMENDMENTS TO THE 2022-2027 IDP (2023/24 AMENDMENTS), INCLUDING CHANGES TO THE CORPORATE-, MUNICIPAL ENTITIES- AND CIRCULAR 88 (C88) SCORECARDS)
It is essential that while there has been a noticeable decline in values in many areas, property owners must still check their new GV 2022 valuations and ensure the correctness thereof. A decline in values may not necessarily indicate that the property has been correctly valued. OBJECTIONS must be lodged by 30 April 2023 (Visit www.appraise.co.za).
“ As part of the City of Cape Town’s public participation process, there will be Subcouncil based meetings to present the draft 2023/24 budget. Please contact your Subcouncil offices for further information on the meetings.
The documents can also be accessed through our website from 30 March 2023 at www. capetown.gov.za/budget.
Written correspondence should be addressed to:
The City Manager, 2023/24 IDP/Budget,
5th Floor, Podium Civic Centre, Cape Town 8001; or Private Bag X9181, Cape Town 8000; or E-mail: Budget.Comments@capetown.gov.za
Any person wishing to comment must do so in writing to the above address, online or submit comments to their local Subcouncil office by no later than 16:30 on Friday, 05 May 2023. Any person, who is unable to write, may come to the offices mentioned below during office hours and a member of staff will assist him/her to transcribe his/ her comments.”