Matjhabeng
Local Municipality

POLICY PRINCIPLES

3.1 Rates are levied in accordance with the Act as an amount in the rand based on the market value of all rateable property contained in the municipality’s valuation roll and supplementary valuation roll.

3.2 As allowed for in the Act, the municipality has chosen to differentiate between various categories of property and categories of owners of property as contemplated in clause 7 and 8 of this policy. Some categories of property and categories of owners are granted relief from rates. The municipality however does not grant relief in respect of payments for rates to any category of owners or properties, or to owners of properties on an individual basis.

3.3 There would be no phasing in of rates based on the new valuation roll, except as prescribed by legislation and in accordance with clause 16 of this policy.

3.4 In accordance with section 3(3) of the Act, the rates policy for the municipality is based on the following principles: (a) Equity The municipality will treat all ratepayers with similar properties the same. (b) Affordability The ability of a person to pay rates will be taken into account by the municipality. In dealing with the poor/indigent ratepayers the municipality will provide relief measures through exemptions, reductions, rebates and cross subsidy from the equitable share allocation. (c) Sustainability Rating of property will be implemented in a way that: i. it supports sustainable local government by providing a stable and buoyant revenue source within the discretionary control of the municipality; ii. Supports local, social and economic development; and iii. Secures the economic sustainability of every category of ratepayer. (d) Cost efficiency Rates will be based on the value of all rateable property and will be used to fund community and subsidised services after taking into account profits generated on trading (water, electricity) and economic (refuse removal, sewerage removal) services and the amounts required to finance exemptions, rebates, reductions and phasing-in of rates as approved by the municipality from time to time.

4. SCOPE OF THE POLICY

4.1 This policy document guides the annual setting (or revision) of property rates tariffs. It does not necessarily make specific property rates tariff proposals. Details pertaining to the applications of the various property rates tariffs are annually published in the Provincial Gazette and the municipality’s schedule of tariffs, which must be read in conjunction with this policy.

5. APPLICATION OF THE POLICY

5.1 In imposing the rate in the rand for each annual operating budget component, the municipality shall grant exemptions, rebates and reductions to the categories of properties and categories of owners as allowed for in this policy document.

6. PRINCIPLES APPLICABLE TO FINANCING OF SERVICES

6.1 The municipal manager or his/her nominee must, subject to the guidelines provided by the National Treasury and the Executive Committee of the municipality, make provision for the following classification of services:-

(a) Trading services i. Water ii. Electricity (b) Economic services i. Refuse removal. ii. Sewerage disposal. (c) Community and subsidised services These include all those services ordinarily being rendered by the municipality excluding those mentioned in 6.1 (a) and (b).

6.2 Trading and economic services as referred to in clauses (a) and (b) must be ring fenced and financed from service charges while community and subsidised services referred to in clause (c)will be financed from surpluses on trading and economic services, regulatory fees, rates and rates related income.

Retired and Disabled Persons Rate Rebate

i. Retired and Disabled Persons, not registered as indigents, qualify for special rebates according to monthly household income. To qualify for the rebate a property owner must:-

a. occupy the property as his/her normal residence;

b. be at least 60 years of age or in receipt of a disability pension from the Department of Welfare and Population Development;

c. be in receipt of a total monthly income from all sources as annually determined by the municipality (including income of spouses of owner);

d. not be the owner of more than one property; and

e. provided that where the owner is unable to occupy the property due to no fault of his/her own, the spouse or minor children may satisfy the occupancy requirement.

ii. Property owners must apply on a prescribed application form for a rebate as determined by the municipality. Applications must be accompanied bya. a certified copy of the identity document or any other proof of the owners age which is acceptable to the municipality;

b. sufficient proof of income of the owner and his/her spouse;

c. an affidavit from the owner;

d. if the owner is a disabled person proof of a disability pension payable by the state must be supplied; and

e. if the owner has retired at an earlier stage for medical reasons proof thereof must be submitted.

iii. All applications must be addressed in writing to the municipality by 30 April for the financial year in respect of which the rate is levied. If the rebate applied for is granted the rebate will apply for the full financial year. For the 2021/2022 financial year the total monthly income and corresponding rebate is determined as follows:-

a. R0 to R2 160 per month- 100%. b. R2 611 to R6 000 per month - 80%. c. R6 001 to R9 000 per month - 70%. d. R9 001 to R13 000 per month - 20%

iv. The municipality retains the right to refuse the exemption if the details supplied in the application form were incomplete, incorrect, or false.

13.3 Properties with a market value below a prescribed valuation level of a value to be determined annually by the Municipality may, instead of a rate being determined on the market value, be rated a uniform fixed amount per property.

13.4 The extent of the rebates granted in terms of 13.1 and 13.2 must annually be determined by the municipality and included in the annual budget.

14.1 The rates levied on the properties shall be payable:-
(a) On a monthly basis; or
(b) Annually, before 31 June each year.

14.2 The municipality shall determine the due dates for payments in monthly instalments and the single annual payment and this date shall appear on the accounts forwarded to the owner/ tenant/ occupants/ agent.

14.3 Rates payable on an annual basis, excluding annual rates levied on state owned properties, will be subject to a discount of 5% if paid in full on or before 31 June of each year.

14.4 Interest on arrears rates, whether payable on or before 31June or in equal monthly instalments, shall be calculated in accordance with the provisions of the credit control, debt collection and indigent policy of the municipality.

14.5 If a property owner who is responsible for the payment of property rates in terms of this policy fails to pay such rates in the prescribed manner, it will be recovered from him/her in accordance with the provisions of the Credit Control, Debt Collection and indigent policy of the Municipality.

14.6 Arrears rates shall be recovered from tenants, occupiers and agents of the owner, in terms of section 28 and 29 of the Act and the Municipality’s credit control and debt collection bylaw. No interest if its municipal error and there will be a short term settlement for reimbursement to role players.

14.7 Where the rates levied on a particular property have been incorrectly determined, whether because of an error or omission on the part of the municipality or false information provided by the property owner concerned or a contravention of the permitted use to which the property concerned may be put, the rates payable shall be appropriately adjusted for the period extending from the date on which the error or omission is detected back to the date on which rates were first levied in terms of the current valuation roll.

14.8 In addition, where the error occurred because of false information provided by the property owner or as a result of a contravention of the permitted use of the property concerned, interest on the unpaid portion of the adjusted rates payable shall be levied at the maximum rate permitted by prevailing legislation.

14.9 (a) if the rates payable to a council in respect of rateable property have been in arrears for a period of not less than 3 years and the owner of the rateable property cannot be traced, The Municipality may cause a notice: 1) Giving a description of such rateable property 2) Disclosing the name of the owner as registered in the deeds registry and the number and date of the deed relating thereto. 3) Stating that such rates are unpaid and giving particulars thereto. 4) Demanding payment thereof, and 5) Stating that in default of payment thereof together with interest thereon, within three months after the date of the last publication of such notice, the council will take possession of and sell such property.

To be published once in the gazette and once a week for the three consecutive weeks in the press. (b) If after the expiration of the 3 months after the last publication of the notice referred to in paragraph (a) such arrears rates and the interest thereon have not been paid, the council may take possession of such rateable property and sell it by public auction: provided (i) the auction shall be advertised by notice published once in the gazette and once a week for the consecutive weeks in the press.

(ii) if the property is mortgaged, the council shall, at least 7 days before the first publication of the notice advertising the auction, give every mortgage a written notice of its intention to sell the property ,and

(iii) if, before the auction is commenced, the owner pays the rates and interest thereon together with the expenses incurred by the council in connection with the rateable property in terms of this sub-section, the property concern shall not be sold and the owner may resume possession thereof.

COMMUNITY PARTICIPATION

19.1 Before the municipality adopts the rates policy, the municipal manager will follow the process of community participation envisaged in chapter 4 of the Municipal Systems Act and comply with the following requirements:-

19.1.1 Conspicuously display the draft rates policy for a period of at least 30days (municipality to include period decided on) at the municipality’s head and satellite offices, libraries and on the website.

19.1.2 Advertise in the media a notice stating that the draft rates policy has been prepared for submission to council and that such policy is available at the various municipal offices and on the municipal official website, such notice be on local and provincial newspapers for the general public and stakeholders.

19.1.3 Property owners and interest persons may obtain a copy of the draft policy from the municipal offices during office hours at a fee as determined by Council as part of its annual tariffs. Property owners and interest persons are invited to submit written comments or representations to the municipality within the specified period in the notice.

19.1.4 Council will consider all comments and/or representations received when considering the finalisation of the rates policy.

REGISTER OF PROPERTIES

20.1 The municipality will compile and maintain a register in respect of all properties situated within the jurisdiction of the municipality. The register will be divided into Part A and Part B.

20.2 Part A of the register will consist of the current valuation roll of the municipality and will include all supplementary valuations done from time to time.

20.3 Part B of the register will specify which properties on the valuation roll or any supplementary valuation roll are subject to: i. Exemption from rates in terms of section 15 of the Property Rates Act, ii. Rebate or reduction in terms of section 15, iii. Phasing-in of rates in terms of section 21, and iv. Exclusions as referred to in section 17. 20.4 The register will be open for inspection by the public at the municipal main offices during office hours or on the website of the municipality. 20.5 The municipality will update Part A of the register during the supplementary valuation process. 20.6 Part B of the register will be updated on an annual basis as part of the implementation of the municipality’s annual budget.

BY-LAWS TO GIVE EFFECT TO THE RATES POLICY

21.1 The municipality will adopt By-laws to give effect to the implementation of the Rates Policy and such By-laws may differentiate between different categories of properties and different categories of owners of properties liable for the payment of rates.

REGULAR REVIEW PROCESSES

22.1 The rates policy must be reviewed on an annual basis to ensure that it complies with the Municipality’s strategic objectives as contained in the Integrated Development Plan and recent legislation.