MPRA

Does the Municipal Property Rates Act provide for any exclusions from rating?

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Section 229(2) of the Constitution provides for national legislation to regulate municipalities’ power to levy property rates. In terms of the Act, certain exclusions from rating are made. These include:  The first R 15 000 of the market value of residential property;  Land reform beneficiaries’ property, for 10 years, provided that the property doesnot change […]

MPRA

What is property rates revenue used for?

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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 […]

MPRA

How will the Municipal Property Rates Act affect property owners?

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The critical determinant of how much property owners will pay is the amount in the Rand each municipal council will determine for the various property categories. The Act does not change the total revenue needs of municipalities, nor does it set the Cent amount in the Rand. Each municipality will continue to set and collect […]

MPRA

How are municipal property rates determined?

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The financial liabilities for municipal property rates are calculated by multiplying the market value of immovable property (for example, land and buildings) by a Cent amount in the Rand that a municipal council has determined. For example: If the market value of immovable property (land and buildings) is R 50 000, and o The Cent […]

MPRA

Who is liable for the payment of municipal property rates?

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All immovable property owners are liable for the payment of rates. Therefore, all property owners, including commercial, residential (homes), agriculture, government, etc, are included in the definition of property. Land tenure rights such as permission to occupy (PTOs) commonly found in communal areas, are also included in the definition of property. Municipalities must ensure that […]

MPRA

What are municipal property rates?

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Municipal property rates are a Cent amount in the Rand levied on the market value of immovable property (that is, land and buildings). Municipalities have a long history of rating property in terms of the old Provincial Ordinances (of the former Cape, Natal, Orange Free State and Transvaal provinces), especially in the formerly white urban […]

MPRA

Why is there a need for the Municipal Property Rates Act?

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To regulate the power of a municipality to impose rates on property (in accordance with section 229(2) of the Constitution); To provide a uniform framework for regulating the rating of property throughout the country; To exclude certain properties from rating in the national interest; To make provision for municipalities to implement a transparent and fair […]