Ehlanzeni District Municipality Submission

Mr Johan Bershof (Director Auxiliary Services) submitted that the basis for evaluation and rating was section 4 of ordinance 11 of 1977 with rateable property being land and improvements. In response to question 2, Mr Bershof presented that their information was recorded on a Valuation roll based on section 9 of ordinance 11 of 1977.

Presentation to the portfolio committee for provincial and local government

Progressing of the local government property rates bill: 19- 2003

By: J E Boshoff

Director: Auxiliary services

Ehlanzeni District Municipality

 

Ehlanzeni District Municipality (DC 32)

1. Located within Mpumalanga

2. Part of former Transvaal

3. Local Authorities Rating ordinance 11 of 1977 still applicable

Ehlanzeni district municipality (DC 32)

4. Local Municipalities within Ehlanzeni district;

Ehlanzeni District Municipality District management areas

  1. Pilgrims Rest ( the Farm Ponieskrans) Thaba Chweu
  2. Mount Anderson ( Farms little Joker, Mount Prospect and Pormosa) Thaba Chweu
  3. Mthethomusha (former Kangwane) Mbombela
  4. Barveton Nature Reserve ( portion of Weltevreden and potion of Brommers ) Umjindi
  5. Mahushe- shongwe ( Within Matsamo Triabal Authority) Nkomazi

Presentation to the Portfolio Committee for provincial and local government

Question 1

Basis for evaluation and Rating

Section 4 of ordinance 11 of 1977

Ratable Property

May Levy a rate on the following property:

  1. land, including land or any portion of land which is the property of a local authority and which is let by it;
  2. any right in land; and
  3. any improvements in, on or under land or pertaining to any right in land

Presentaion to the Portfolio committee for provincial and local government

Question 2

Information recorded in Valuation Roll

Section 9 Of ordinance 11 of 1977

  1. the registered or other description, as the case may be;
  2. in the case of land or a right in land , the extent of the land concerned;
  3. the improved value;
  4. the site value;
  5. the value of improvements
  6. the name of the owner.

Presentation to the Portfolio committee for provincial and local government

Question 3 & 9

See the examples of levying of property rates by Mbombela and Thaba Chweu local

(Hard Copies handed out)

Presentaion to the Portfolio committeee for provincial and local government

Question 4

Discernible impact of moving to a flat rate based on land and improvement

  1. Investment in improvements will be less attractive.
  2. To save on rates cheaper Improvements will be done

Presentation to the portforlio committee for provincial and local government

Question 5

What will be the broader impact of citizenry? In Particular:

Property rates are fixed. Expenditure in this regard cannot be controlled by the individual .

If a poor person receives a more expensive property as a grant in aid or inherit such property, the property rates on the improved value may be too expensive and the person will have sell the property.

It can also be an obstacle for emerging entrepreneurs.

The trend will be that improvements will become cheaper to avoid unnecessary high property rates . more economic structure will be constructed which will result into less attractive areas