Johannesburg -
Homeowners who use their buildings for illegal purposes, or who neglect their buildings, could pay four times their normal property rates from July 1.
These new laws are being proposed by the City of Joburg in order to stop illegal use of properties.
The city is also proposing to offer building incentives to all new building developments that will take place within the Corridors of Freedom routes.
These proposals, and others, are currently being circulated among residents for comment before they are finalised.
The city says it is mindful of property owners who are struggling financially with proposed increases.
“The review takes place when the global economic growth is sluggish, and the value of the rand was dropping in recent months.
“The disposable income of property owners is under pressure, but there is a growing percentage of property owners who are getting rates rebates and reductions,” says Kgamanyane Maphologela, director of customer communications and stakeholder management.
Joburg property owners are being encouraged to participate in the city’s annual property rates policy review consultations, which are being conducted around the city.
The city reviews its rates policy on an annual basis to determine categories of properties to be rated according to a proposed tariff. The due date for comments and inputs for submission is February 29.
“This is to ensure that residents’ views are heard and that the tariffs are equitable and affordable.
“The public consultation process takes place in terms of a two-step process. During the first round of public consultation during January and February, residents and ratepayers are informed about the existing rates, and feedback and comments are invited.
“This will lead to a second round of public consultation in April and May, during which the new proposals, with the feedback incorporated, will be presented and finalised,” he said.
The city’s rates policy review would prioritise the current economic conditions of the property owners and aimed to encourage investment in the property market, he said.
The city offers social relief and creates a safety net for particular vulnerable groups - such groups include the poorest of the poor, pensioners, and people with disabilities.
Ratepayers falling within this category are normally encouraged to apply for a range of subsidies on rates or rebates on electricity, water, and others.
This includes pensioners’ rebates and expanded social packages upon application.
“The rates policy is an important process through which the city encourages the maximum public participation in the determination of its rates and taxes for the next year.
“Ratepayers are invited to get involved and have their say during the series of meetings which are open to all members of the public,” said Maphologela.
Residents and ratepayers can visit www.joburg.org.za to view the rates policy and the schedule of public meetings.
Proposed amendments
- Sectional title residential rebate has been reduced from 15 percent to 10 percent.
- The threshold rebate for residential property has been retained at R200 000. The city will not levy a rate on the first part of the value up to R200 000 of the market value of the residential properties.
- Zero rating on municipal-owned properties.
- Increase of income notch for pensioner who qualifies for pensioner rebates. People over 70 who earn less than R7 406 qualify for 100 percent rebate and those earning between R7 406 and R12 696 qualify for a 50 percent rebate if the property is worth less than R2 million.
- New building incentives - the rebate will apply to all new building developments that take place within the identified Corridors of Freedom route. The property owner will pay a quarter of the rate as per the category of land for a period not exceeding two years during the construction phase; the property owner will pay half the rate on the first year of operation and full rates from the second year.
The Star