The rate-in-the-rand calculation, which determines the rates a property owner will be paying in Cape Town from July 1 2019, will soon be published for public comment – and locals will be happy to know the City has said a lower rate can be expected.
The new rates will go up for public comment after the Council meeting at the end of March 2019, together with the Rates Policy, which sets out the 10 rating categories.
The revenue requirement for the 2019/20 budget is the main consideration when deciding on the rate-in-the-rand.
“The City will determine how much money it requires to provide the optimum range of services to its residents, as well as the likely provision that needs to be made for rebates and indigent support. The City does not raise more money than is required to provide necessary services such as fire services, clinics, traffic services, libraries, cleaning and parks. There is no profit on municipal rates. Given the average market-related increase of residential properties in Cape Town of 34% in the three years between the GV2015 and GV2018, a significantly lower rate-in-the-rand can be expected than the current rate,” said the City’s Mayoral Committee Member for Finance, Alderman Ian Neilson.
The rating categories included the proposed Rates Policy that are in line with national regulations are:
– residential properties
– business and commercial properties
– industrial properties
– agricultural properties (any agricultural property not used for bona fide farming does not fall within this category)
– mining properties
– properties owned by an organ of state that are used for public service purposes
– public service infrastructure properties (PSI)
– properties owned by public benefit organisations (PBOs) and used for specified public benefit activities
– properties used for multiple purposes
– vacant land
An indication of the rates payable for each category will be available on the City’s website in April 2019, following the determination of the new rate-in-the-rand by Council, based on the City’s budget requirements for the 2019/20 financial year.
Property owners can see the valuation rates here once live.