General Municipal Valuation
In terms of the new Municipal Property Rates Act 6 of 2004, the Administration of the City of Cape Town has determined that the effective date of new Muncipal General Valuation will be 1 July 2009 and the new rates and taxes payable on these Valuations will be applicable as from 1 July 2010.
Having been involved in Municipal Valuation and objections for the past 25 years, the new Act provides not only provides for the canvassing of information (Section 42 - Access to Information) but also now cautions an Owner that fails to comply with providing the requisite particulars as there is a risk of a cost order against you by the Appeal Board for failing to provide "any document, information or particulars".
Too many Owners do not realise that once the Valuation Roll is published and the objections are lodged, a long waiting period begins. The new Act, allows the municipal value to review the objection in the first instant and any change of more than 10% in the Valuation must be submitted to the City Manager with reasons. The City Manager will then forward the amended valuation together with the municipal valuers reasons to the valuation appeal board. During this period, in terms of Section 50 (6), the lodging of the objection does not defer liability for the payment of rates beyond the date determined for payment. This is likely cause financial hardship to the Property Owner. Even the collection of arrears has been well addressed as failure to pay arrears could result in your tenant having to pay the rent direct to the Municipality. If you have a managing agent, he can be forced to pay over all rental collected.
If this objection period is not enough to encourage you to provide information and assist the municipal valuer from the start, remember you are not the only one who can object to your valuation. An objector is "any person" and not only the property owner. Sectional Title Units are now valued seperately and Sectional Title Owners receive individual rates and taxes accounts.
Once the appeal process commences and you wish to us to engage with the Municipal Valuer to discuss your objection, your information will prove vital in expediting the objection process and hopefully result in a speedy end to your dilemma. This may avoid the high costs of preparing for and attending an appeal board hearing.
Sectional Title Owners may wish to make accurate notes of sales within the building and note comparable features. This information can assist you with an objection should the need arise.
Local Authorities (Municipal Valuations) are released from to time by the Local Authority
As opposed to the General Valuation Roll which was initially published by the municipality at the start of the valuation period, Supplementary Valuation Rolls are produced regularly until the next general valuation. For example, The City of Cape Town published the 2009 General Valuation Roll, which was based on the market value of the property values as at 1st July 2009 and all the subsequent valuation rolls are termed “supplementary rolls”.
The first of supplementary valuation roll is a very important roll especially in view of the fact that following the publication of any general valuation roll, attention will be given to various properties which may have been omitted from the previous roll. In terms of Section 78 of the MPRA, the following circumstances give rise to a supplementary valuation being performed whenever it is necessary as a result of any rateable property-
(a) incorrectly omitted from the valuation roll;
(b) included in a municipality after the last general valuation;
(c) subdivided or consolidated after the last general valuation;
(d) of which the market value has substantially increased or decreased for any reason after the last general valuation
(e) substantially incorrectly valued during the last general valuation; or
(f) i that must be revalued for any other exceptional reason.
Should you have received a notice of supplementary valuation or suspect that changes to the property has taken place e.g. building alterations, property conversion to sectional title, expropriation of a portion of the property, demolition or any other reason, you should check the valuation rolls regularly as non-receipt of notice may not be a valid reason to plead ignorance of the fact that you did not know that your property was revalued. Should you have received a notice and you wish to object to the valuation, the appropriate valuation objection form must be completed.
Various factors can influence a supplementary valuation for example where the market value may have increased substantially since the last the general valuation or was subsequently incorrectly valued. Notwithstanding the rights that the City may have to include properties which they have identified for revaluation etc property owners also have similar rights and may accordingly proceed to apply for a revaluation of their property.
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