MOGALE CITY
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Comment sought on rates by-law

21 May 2009

By Emily Visser

RESIDENTS of Mogale City have one month in which to inspect the Property Rates by-law, which will give effect to the municipality’s Property Rates Policy. The policy comes into effect on 1 July.

The policy by-law is open for public inspection from 18 May to 18 June, during normal office hours, and residents have until 11 June to comment on it. This should be done in writing and directed to the chief financial officer.

According to the City’s valuations department, it is important that residents take note of the different categories of property and owner stipulated in the by-law, as these will guide the municipality in the granting of exemptions, reductions and rebates.

The municipality encouraged its people to make suggestions and give relevant feedback on the proposed policy so that the necessary changes could be made, the department said.

Rated on zoning
To create certainty and consistency, the by-law stipulates that “properties shall first of all be categorised in accordance with their formal zoning”. Town planning schemes, town establishment schemes and town planning regulations may be used to determine the formal zoning.

If a property’s zoning classification cannot be determined, the actual use of the property will determine the category.

“All relevant information, including circumstantial evidence, may be taken into consideration in an attempt to determine for what purpose the property is being used. A physical inspection may be done to acquire the necessary information,” the by-law stipulates.

As a last resort, the geographical area in which the property is situated will also be considered, but the by-law notes that “this criterion should not be used in isolation”.

Reductions and rebates
Various categories of property owner will be considered for reduced tariffs and rebates, including pensioners, the physically and mentally handicapped, disaster-hit homes, and those who own residential properties with a market value below a specific amount as determined annually by the municipality in its budget.

That amount is R40 000 this year.

All residential properties will qualify for this property value reduction; for example, if a residential property is valued at R240 000, the first R40 000 is not rateable and the owner will only pay taxes on the remaining portion, the R200 000.

Residential properties also qualify for a further rebate of 40 percent; this rebate is also applicable to farm properties used for residential purposes. No rebate will be applicable to farm properties used for commercial purposes.

This rebate is automatically applied.

NGOs and others
The City may also award a 100 percent Grant In Aid on the assessment rates of welfare organisations, charitable institutions, sporting bodies, cultural organisations, museums, libraries, art galleries, botanical gardens, youth development organisations and animal welfare bodies, with specific stipulations.

And in the case of retired and disabled persons, a special rebate of 40 percent will apply based on the monthly household income. Independent schools will be granted a standard rebate of 25 percent.

Applications for these rebates must be made to the chief financial officer and are subject to certain conditions.

Exemptions
The by-law suggests that certain properties be exempt from taxes.

Municipal properties exclusively used or occupied by Mogale City will not pay rates. However, if the property is leased from the municipality, the lessee will be responsible for paying the determined rates as normal.

Public service infrastructure such as clinics and schools are also exempt as they provide essential services to the community. These exemptions will be applied automatically.

Certain property owners will also be exempt from paying taxes; among these are child-headed households and indigent residents registered as such in terms of the municipality’s Indigent Management Policy.

These applications must be made in terms of the Indigent Management Policy.

Enquiries
The by-law can be viewed at the municipal offices, in the IEC Building, on the corner of Monument and Ockerse streets, in Krugersdorp or at any satellite council office. It is also available online.

For more information, contact the City’s valuations section on 011 951 2301 / 2332 / 2302 or 011 668 0631. People who cannot read and write will be assisted at the valuations office.


Various categories of property owner will be considered for reduced tariffs and rebates
Various categories of property owner will be considered for reduced tariffs and rebates


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