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Frequently Asked Questions
What is a General Valuation?
General Valuations are prescribed by law. A General Valuation is the valuation of all properties within Buffalo City Municipality's area of jurisdiction. General Valuations are carried out every four years, to ensure that the valuation roll reflects changes in the property market.
Question: Why are properties valued?
Properties are valued because property rates are based on the value of the property. All properties are valued at the same date of valuation to ensure a fair and equitable basis on which to levy rates. Property values are maintained on a valuation roll prepared according to specifi c legislation.
Question: When is the general valuation taking place?
Data collectors will be visiting properties as from August 2007. The new valuation roll for all municipalities must be implemented by 2009.
Question: What valuation method is used?
The basis of valuation is the market value of the property. Market value is the price of a property on the date of valuation, if sold on the open market by a willing seller to a willing buyer.
Question: How can I help Buffalo City get valued?
Buffalo City Municipality ensures a culture of community participation. Communities have a responsibility to engage with the municipality when the valuation roll is open for public inspection and if necessary to lodge objections in respect of specific individual properties.
Question: Where can I get more information on Property Valuations?
An information centre has been established to help members of the public who have questions regarding the valuation of properties. Our information centre staff will be able to assist you with further information. Please call 043-7220240 or visit our website at www.valueMe.co.za
Question: How does the valuation of my property affect my rates account?
Rates are calculated based on the value of the property and thus the higher the value, the higher the property rates and taxes.
Question: Uyintoni lo msebenzi wokuxatyiswa kwezakhiwo?
Lo msebenzi wokuxatyiswa kwezakhiwo waqulunqwa ngokusemthethweni. Kuxatyiswa zonke izakhiwo ezikummandla wolawulo lukaMasipala wase-Buff alo City. Izakhiwo zixatyiswa rhoqo kwisithuba seminyaka emine. Oko kwenzelwa ukuba kubekho isiqinisekiso sokokuba uxwebhu olushicilelweyo noluqulathe amaxabiso ezakhiwo lubonisa ngqo inguqu ekhoyo kumaxabiso entengiso yezakhiwo.
Question: Zixatyiselwa ntoni izakhiwo?
Ukuze kufumaneke inani lentlawulo yerhafu yesakhiwo kufuneka laziwe ixabiso lesakhiwo eso. Zonke izakhiwo zixatyiswa ngomhla omnye omisiweyo ukuqinisekisa okokuba akukho kuqhatheka, kwaye izakhiwo zixatyiswe ngendlela enye, elinganayo nefanayo. Amaxabiso ezakhiwo ashicilelwa agcinwe kuxwebhu lwamaxabiso elilungiswe ngokwemigaqo ethile emisiweyo.
Question: Zixatyiswa nini izakhiwo?
Abaqokeleli beenkcukacha eziqulathe amaxabiso ezakhiwo baza kutyelela abahlali ukususela kwinyanga ka-Agasti 2007. Olu hlobo lutsha lokushicilela amaxabiso ezakhiwo kufuneka lube sele lugqityiwe ngonyaka ka-2009, kwaye ube sele ufezekisiwe kwimimandla yolawulo lwabo bonke oomasipala.
Question: Loluphi uhlobo lokuxabisa olusetyenziswayo?
Ixabiso lentengiso yesakhiwo lixabiso lesakhiwo nelithi lisetyenziswe ukufumanisa intlawulo yerhafu. Kuye kusetyenziswe eli xabiso lentengiso xa kuthelekiswa amaxabiso ngomhla omiselwe ukufumanisa inkcazelo ngamaxabiso ezakhiwo. Aye anikwe lowo uzimisele ukuthenga isakhiwo kumthengisi onomdla wokusithengisa.
Question: A: Igalelo lomhlali ngamnye kulo msebenzi wokuxatyiswa kwezakhiwo eBuffalo City.
UMasipala wase-Buffalo City ukwiphulo lokuqinisekisa okokuba uluntu luthabatha inxaxheba kwimiba yonke ephathelele kwiinkonzo zakhe. UMasipala uza kunikezela olu xwebhu oluqulathe amaxabiso ezakhiwo eluntwini ukuze lufake izimvo zalo. Xa kuyimfuneko, abahlali bangafaka izicelo zokuchasa amaxabiso lawo ngokuphathelele kwizakhiwo ezithile.
Question: Ndingalufumana phi ulwazi oluthe vetshe ngamaxabiso ezakhiwo?
Xa ufuna ulwazi oluthe vetshe, ungaqhagamshelana neziko eliqulathe ulwazi neenkcukacha zamaxabiso ezakhiwo neliqulunqelwe ukunceda abantu abanemibuzo ephathelele kumaxabiso ezakhiwo. Abasebenzi bethu abaxhotyisiweyo bangakunika ulwazi olunabileyo ngalo mba. Nceda utsalele umnxeba kwa-043-7220 240 okanye utyelele iwebsayithi engu-www.valueMe.co.za
Question: Ixabiso lesakhiwo sam liyichaphazela njani i-akhawunti yam?
Irhafu ibalwa ngokwexabiso lesakhiwo. Xa ixabiso lesakhiwo liphezulu, nerhafu ibaphezulu.
Question: Where can I read more about Municipal Property Rates Act?
View more information under the Document Library section of this web site.
Question: What is the Municipal Property Rates Act?
This Act stipulates that all properties need to be valued at least every four years to take into account changes in the market value of properties. This is to make sure that the Valuation Roll stays up to date and that property rates are levied transparently and fairly. The Municipal Property Rates Act replaces the old system and property valuation and rating based on the old Provincial Ordinances.
Question: What Exactly Are Municipal Property Rates?
They are a form of tax paid by property owners to their municipality. Rates are billed monthly with ones lights and water account, but owners can apply to pay their rates as a lump sum annually.
Question: Who Has To Pay Municipal Property Rates?
Everyone who owns immovable property (land and buildings) has to pay rates. This includes commercial and residential property as well as land used for agriculture. Even government and public service infrastructure is rateable.
Question: What Is The Money Collected For Municipal Property Rates Used For?
Property rates are the most important source of general revenue for municipalities, especially in developed areas. The money is used to fund services that benefit the community as a whole, such as installing and maintaining roads, sidewalks, street lighting and storm drains. It is also used to build and operate clinics, parks, recreational facilities and cemeteries. The money also funds municipal administration, such as computer equipment and stationery, and costs of governance, such as council and community meetings. Municipal rates are set, collected and used locally, so YOUR rates are used to benefit YOUR community.
Question: What If You Not The Owner?
If you rent or occupy premises, you will still need to allow valuers access to the premises during the predetermined times. Tenants and other occupants have the same duties as home owners when it comes to allowing access to the buildings on the properties.
Question: What About Property Owned By Sectional Title?
Your sectional title unit will also need to be valued and it is important that data collectors be allowed access to the unit and any outbuildings such as the garage and storeroom. The Municipality needs to register unit owners in sectional title schemes as they will no longer be able to rate the body corporate. It is only by gathering accurate information about your sectional title unit that the City will be able to determine its correct market value and levy rates in a fair manner.
Question: What Will Data Collectors And Valuers Do?
They will collect detailed information to help to establish the market value of your property, such as:
1. The area of the buildings
2. The type of construction, quality and condition of the
house or building
3. Where the house is located e.g. on a busy road
4. The type of view
5. The number of bedrooms, living areas and bathrooms
6. Whether there is a swimming pool, granny flat, garage
or garden
7. Whether the property is used for business or residential
purposes
Question: What If You Not At Home?
If there is nobody at home when the data collectors visit, they will leave a Call Back card advising you that they have been there and request that you contact the Municipality to reschedule a visit. It is important that the data collectors gain access to the buildings on your property, so please make an effort to arrange a convenient time as soon as possible. If data collectors are not able to gain access to your home, the final value of your property will be based on available information.
Question: What are rates?
A municipality is required to be self-funding. This means that Government does not provide money for local authorities to perform their functions for the municipal services they render. Local authority services are provided directly to the residents of the city. The fees charged by municipalities to owners of property are known as rates and they cover the expenses for providing community services. Some of the main community services provided through rates include:
Public Parks
Public Swimming Pools
Community Halls/Centres
Libraries
Roads, pavements and storm water drainage
Clinics
Street Lighting
Safety and Emergency Services
There is no direct link or a money value between the use or availability of one or more of these services to all residents and the amount you pay on rates. Certain personal services are provided and are directly charged to the user through usage related tariffs Services provided through tariffs are:
Electricity
Water
Sewerage and waste removal
Refuse Removal
Question: Who pays rates?
Rates have to be paid by all owners of property. An owner of property includes schools, police stations, hospitals, private citizens who own property including sectional title units, all businesses that own property and even the government itself. This means that Government, if it owns property, also has to pay rates. The Deeds Offices advises Municipalities of all changes of ownership (transfer) of property.
Question: Who does not pay rates?
For residents, rates will not apply to the following property:
Property owned by religious bodies
Residential property where the market value is below a
certain threshold. This applies only to residential
property.
The threshold is still to be determined. At present, properties with a land value below R20 000 are exempt from paying rates.
The rating policy of the Municipality will determine categories of properties or categories of owners that are exempt from paying rates or where rebates will be applicable.
Question: Why must I pay rates?
A municipality is required to be self-funding. This means that Government does not provide money for local authorities to perform their functions and the municipal services they render, because these services are provided directly to residents.
Question: Why is rates important to us as property owners?
Because rating is taxation, there is no quid pro quo between the property owner and the benefit received. Rates constitute the principle source of revenue for the funding of those municipal services where the benefit is shared over the citizens as a corporate body and does not accrue directly to any individual person or ratepayer. The preservation of rating as the local tax base is the precondition for the autonomy of local government. It is for this reason that it is incumbent upon all owners of rateable property to honour their obligations to their local Council.
Question: What happens if I cannot pay the full amount this month?
It is necessary to keep your account paid up to date on a monthly basis. If for whatever reason you have fallen into arrears, you can make an arrangement to pay off these arrears over an agreed period of time. However, included in the agreement is an undertaking to also keep the current monthly charges paid up to date. The effect of this agreement is to require an additional payment each month until the arrears are fully paid. It is best to keep the current account fully paid on a monthly basis.
Question: How will I know how much to pay for rates?
The Council issues a monthly statement showing the amount due for the month for all of the services provided to the property. A typical account shows each service and the amount payable for each. The layout of the domestic account is generally as follows:
Electricity R
Water Services R
Sewer R
Refuse R
Rates R
The account will also show the property value on which the rates have been based. Presently, rates are only levied on land value. This will change from July 2008 when the rates will be levied on the market value of the property as recorded in the valuation roll of the City. The amounts may be split over two accounts. Should you prefer to receive only one consolidated account for your property, please contact your local Customer Care Centre and request that the two accounts be consolidated. You may be requested to pay the full amount owing on each account before this consolidation can take place. Separate accounts will be issued if you have a tenant on the property. The tenant will be billed for metered water supply as well as electricity consumption. In the case of business premises where the sewer charges are based on the water supply, the sewer charges will also appear on your tenant's account. It is also recommended that the property owner confirms with the tenant and, by arrangement with the Council that the tenant is keeping his billing account with City paid up to date since, ultimately, the owner is responsible for the unpaid accounts of a tenant.
Question: Interest on late payments.
Where a ratepayer fails to remit any amount of rates due within the time permitted, interest will be charged on the unpaid amount calculated from the due date until date of payment
Question: What action will be taken for failure to pay rates?
The Council may take civil action against the property owner (ratepayer) who fails to pay rates. In the extreme, the Council can obtain a Court Order for the sale of a property in execution so that it can recover the arrear rates from the proceeds of the sale of the property. Such a forced sale also allows for a change in ownership thereby allowing for a new property owner to honour his obligations to the Council.
Question: What will the tariff be?
If I apply the current tariff to the market value of my property, it will result in a substantial increase. It is not feasible to try to guess what the new rate in the rand will be since there are too many variables in the valuation and budgeting system that have to be cleared before a new tariff can be projected. You should also not be informed by speculation in the media. The City can however say that the rate tariff will be lower than at present but its impact on individual properties will only be known after the preparation of the 2008/09 budget. The results of this process will only become available after April 2009. The Council presently still levies rates based on land value only in accordance with the prevailing date of valuation: 2 January 2001.
Question: I live in an area where we never paid rates before?
The Council will allow for a phasing in period so that you can adjust your budget to pay future rates. The phasing in period will extend over three or four years.
Question: What will the tariff be?
If I apply the current tariff to the market value of my property, it will result in a substantial increase.
It is not feasible to try to guess what the new rate in the rand will be since there are too many variables in the valuation and budgeting system that have to be cleared before a new tariff can be projected. You should also not be informed by speculation in the media. The City can however say that the rate tariff will be lower than at present but its impact on individual properties will only be known after the preparation of the 2008/09 budget. The results of this process will only become available after April 2009. The Council presently still levies rates based on land value only in accordance with the prevailing date of valuation: 2 January 2001.
Question: You are penalising owners that have improved their properties over the years. This new system will result in property owners neglecting their properties and not maintaining them.
The Council is aware of this concern. However, legislation across the country now makes it compulsory for all municipalities to charge rates on the value of land and improvements. On a personal note, remember that the property belongs to you. It is your life's most important and valuable investment that one day, you may want to sell. A well maintained property will always attract a higher selling price than a property that has been neglected over the years.
Question: I live in a flat. Will this new rates policy affect me?
Not if you are a tenant. The Council only charges rates to property owners. Should your flat be owned under Sectional Title, you will be separately billed for rates as from July 2008. The Council will be embarking on a process to obtain the postal addresses of all owners of Sectional Title units within its area of jurisdiction.
Question: How will this affect me as a pensioner?
The Council will make provision for rebates for certain categories of owners or categories of property in terms of the rating policy. Pensioners will likely receive certain rebates in terms of the policy. Pensioners who qualify in terms of the Council's policy will be requested to fill out an application form and attach certain documentary proof as part of the application. Details of the forms and the information will be given at a later stage.
Question: How does the Council work out these rates?
Once a year Council works out the budget to provide all of the services. It then determines a rates tariff (called the rate in the Rand). When the "rate in the Rand" is calculated it is done only to cover the likely costs of providing the services. The Council does not make a profit out of rates
Question: What must ratepayers do to effectively participate in the implementation of the Municipal Property Rates Act?
Chapter 4 of the Municipal Systems Act requires a culture of community participation in the affairs of the municipality to be developed.
Ratepayers have got a responsibility to engage with their municipalities when municipalities invite public comments/submissions/inputs on their proposed rates policies and budgets. The rates policies deal with issues such as the Cent amount in the Rand that the municipal council propose imposing, relief measures to ratepayers such as granting of exemptions, rebates, and reductions in respect of owners of categories of properties, for example, to
o Indigent owners;
o Owners dependent on pensions or social grants for their livelihood;
o Owners temporarily without income;
o Owners of property situated within an area affected by
? a disaster within the meaning of the Disaster Management Act (2002); or
? Any other serious adverse social or economic conditions;
Ratepayers should comply with municipal requests within the stipulated timeframes that municipalities will publicly announce regarding inspections of property valuation rolls and if necessary lodging objections in respect of market values of specific individual properties.
Raising concerns after municipal councils have already approved municipal rates policies and budgets or after expiry of the objections period will not achieve meaningful results. Communities need to proactively and constructively engage with their municipalities on valuation and rating issues.
Question: What must ratepayers do to effectively participate in the implementation of the Municipal Property Rates Act?
Chapter 4 of the Municipal Systems Act requires a
culture of community participation in the affairs of the
municipality to be developed.
Ratepayers have got a responsibility to engage with
their municipalities when municipalities invite public
comments/submissions/inputs on their proposed rates policies and budgets. The rates policies deal with issues such as the Cent amount in the Rand that the municipal council propose imposing, relief measures to ratepayers such as granting of exemptions, rebates, and reductions in respect of owners of categories of properties, for example, to
o Indigent owners;
o Owners dependent on pensions or social grants for their livelihood;
o Owners temporarily without income;
o Owners of property situated within an area affected by
? a disaster within the meaning of the Disaster Management Act (2002); or
? Any other serious adverse social or economic conditions;
Ratepayers should comply with municipal requests within the stipulated timeframes that municipalities will publicly announce regarding inspections of property valuation rolls and if necessary lodging objections in respect of market values of specific individual properties.
Raising concerns after municipal councils have already approved municipal rates policies and budgets or after expiry of the objections period will not achieve meaningful results. Communities need to proactively and constructively engage with their municipalities on valuation and rating issues.
Question: What must ratepayers do to effectively participate in the implementation of the Municipal Property Rates Act?
Chapter 4 of the Municipal Systems Act requires a
culture of community participation in the affairs of the
municipality to be developed.
Ratepayers have got a responsibility to engage with
their municipalities when municipalities invite public
comments/submissions/inputs on their proposed rates policies and budgets. The rates policies deal with issues such as the Cent amount in the Rand that the municipal council propose imposing, relief measures to ratepayers such as granting of exemptions, rebates, and reductions in respect of owners of categories of properties, for example, to
o Indigent owners;
o Owners dependent on pensions or social grants for their livelihood;
o Owners temporarily without income;
o Owners of property situated within an area affected by
? a disaster within the meaning of the Disaster Management Act (2002); or
? Any other serious adverse social or economic conditions;
Ratepayers should comply with municipal requests within the stipulated timeframes that municipalities will publicly announce regarding inspections of property valuation rolls and if necessary lodging objections in respect of market values of specific individual properties.
Raising concerns after municipal councils have already approved municipal rates policies and budgets or after expiry of the objections period will not achieve meaningful results. Communities need to proactively and constructively engage with their municipalities on valuation and rating issues.
Question: Does the Municipal Property Rates Act make provision for municipalities to grant exemptions, rebates and reductions?
In terms of the Act municipalities may provide for exemptions, rebates, and reductions in their rates policies based on local conditions and circumstances. The cost of such locally determined exemptions, rebates, and reductions must be considered by the municipal council in relation to the benefit received by the local community from such relief measures. For purposes of granting exemptions, rebates, and reductions in respect of owners of categories of properties, such categories must include the following:
Indigent owners;
Owners dependent on pensions or social grants for their
livelihood;
Owners temporarily without income;
Owners of property situated within an area affected by
o a disaster within the meaning of the Disaster
Management Act (2002); or
o any other serious adverse social or economic conditions;
Owners of residential properties with a market value
lower than an amount determined by the municipality; or Owners of agricultural properties who are bona fide farmers
Question: What is property rates revenue used for?
Municipalities need a reliable source of revenue to provide basic services and perform their functions. Property rates are the most important source of general revenue for municipalities, especially in developed areas. Revenue from property rates is used to fund services that benefit the community as a whole as opposed to individual households. These include installing and maintaining streets, roads, sidewalks, lighting, and storm drainage facilities; and building and operating clinics, parks, recreational facilities and cemeteries. Property rates revenue is also used to fund municipal administration, such as computer equipment and stationery, and costs of governance, such as council and community meetings, which facilitate community participation on issues of Integrated Development Plans (IDPs) and municipal budgets.
Municipal property rates are set, collected, and used locally. National and provincial governments do not have the power to levy rates, nor do they share in the revenue collected. Revenue from property rates is spent within a municipality, where the citizens and voters have a voice in decisions on how the revenue is spent as part of the Integrated Development Plans (IDPs) and budget processes, which municipalities invite communities to input prior municipal council adoption of the budget.
Question: What about owners that cannot afford rates?
The act does allow municipalities to provide for exemptions, rebates and reductions in their rates policies based on local conditions and circumstances. For the purposes of granting exemptions, rebates and reductions in respect of owners of categories of properties it may include the following:
Indigent owners
Owners dependent on pension or social grants for their livelihood
Owners temporarily without income,
Owners of agricultural properties who are bona tide farmers
Question: What about owners that cannot afford rates?
What about owners that cannot afford rates?
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