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 hands;
- The first 30% of the market value of publicly controlled service infrastructure as defined in the Act;
- The right to prospect for minerals;
- Property registered in the name of and used primarily as a place of public worship by a religious community, including the associated official residence occupied by an office-bearer of that community who officiate at services at that place of worship;
- Parts of special nature reserves, national parks, nature reserves or botanical gardens within the meaning of the relevant legislation, except where commercial activities take place within them;
- Any island of which the State is the owner.