Cape Town’s City Council has passed a 52% rates relief increase for all residential properties of R5 million and under. The first R450 000 of property value will now be rates-free for all lower and middle income ratepayers, a significant increase from R285 000 previously. Council also greenlit a plan to help more pensioners and social grant recipients benefit from rates rebates, by raising the upper qualifying limit from R17 500 to R22 000 total monthly household income, with effect from 1 July 2023. These relief measures form part of a package of General Valuation policy proposals which served at Council this Friday, 24 February 2023. Final proposals would be reflected in the City’s 2023/24 Budget which will be tabled to Council in March for public participation. Read more below:
‘Today Council passed a 52% rates relief increase, covering all properties under R5 million. The first R450 000 of the property value will now be rates free, which represents a major R150 000 increase to this exemption benefit to assist lower and middle income ratepayers in the city. A reduction in the residential rate-in-the-Rand is also proposed, from the current 0,006344 to 0,006273 for 2023/24. We are also enabling more pensioners and social grant recipients to benefit from rates rebates by raising the qualifying limit from R17 500 to R22 000 household income per month. We have made these proposals to City Council as a way of easing the pressure on households due to the rising cost of living given the national and global economic conditions,’ said Cape Town Mayor Geordin Hill-Lewis.
The General Valuation Roll 2022 (GV2022) is now open for public inspection until 30 April 2023 electronically (email or e-services) or by 31 March 2023 at 30 inspection venues across the city. A new rates estimate calculator will also be available on the City’s website from 27 February 2023, which will provide an easy tool for property owners to see what their estimated rates could be from 1 July 2023.
The City is encouraging ratepayers to use the City’s website to view their property information, including the valuation notice, pre-populated objection form, link to e-services and the provisional rates calculator. If they choose to lodge objections, the preferred option is to do so via the e-services link or by returning the pre-populated objection form by email. The e-services portal is safe, convenient and user-friendly. Online objections are automatically recorded on the valuation system without the need for data capturing by City staff.
‘One of the pledges of our administration is to do the basics better through technology and innovation. For this valuation, we’ve built a rates estimate calculator on the City’s website to make life easier for property owners. With an easy click, property owners will be able to see what their estimated rates could be from 1 July 2023.
‘With previous GVs, the proposed rate-in-the-Rand was normally only tabled at the March Council meeting, after the inspection period had ended. This left property owners guessing the rates liability of their new property valuations. For GV2022, Council today passed provisional rate-in-the-Rand and relief measures to enable property owners to determine the likely impact on their rates bill using the rates estimate calculator on the City’s website,’ said Mayor Hill-Lewis.
Important facts
· Legislation requires metropolitan municipalities to undertake a GV at least every four years.
· The GV determines what contributions property owners make to the rates account. Rates are used for services shared by all Capetonions, such as fire services, libraries, recreational areas and clinics.
· For GV2022, the valuation date is 1 July 2022. The accurate and fair market value is determined by comparable sales information around the valuation date in most cases.
· GV2022 was quality assured by the International Property Tax Institute.
· Ratepayers may submit objections at their closest inspection venue between 21 February 2023 and not later than 31 March 2023. E-services or e-mailed objections can be submitted up to 30 April 2023. The GV2022 Roll will be open for double the prescribed 30-day requirement to give property owners sufficient time to inspect the roll and to submit objections on the market value, where they feel it is warranted.
To view your valuation, calculate your rates estimate, or lodge objections, visit:
· www.capetown.gov.za/propertyvaluations
· e-Services: www.capetown.gov.za/eservices
For rates relief:
