GENERAL VALUATION ROLL

General Valuation Roll 2023

Do you own property in South Africa? Brace yourself for a potentially nasty surprise on your municipal bills in the form of increased property taxes. Every few years, municipalities revalue property values and, in 2021, thousands of property owners in Ekurhuleni were caught off guard with property taxes that were increased by as much as 2000% in some cases. That’s right, a residential property worth R1 million could now be worth R20 million, resulting in a whopping R14 114 per month as the new rates bill from the City of Ekurhuleni. This excludes the annual inflation-related increases on top of this over the following years.

But it’s not just Ekurhuleni. Property owners across the country face the same issue. Municipalities use two ways to increase rates: through the valuation roll and through the general annual increase in rates that is included in the municipal budget each year. The valuation roll is specific to each property and is based on the municipality’s own assumptions and processes. If you don’t take the time to view the estimated value set out by the municipality and determine whether it is accurate, you could be overpaying for years to come.

What can you do to avoid this? First, be on the lookout for a formal notice (Section 189 notice) from your municipality’s General Valuation Roll and exercise your rights as laid out in this document. Below is a table listing some of the municipalities currently running their valuations, their deadline dates and instructions on how property owners can review their municipal valuation and potentially challenge any errors.

Municipality

Town

Deadline

Step-by-step Instructions

Dannhauser Local Municipality

Dannhauser

30/03/2023

Link

City of Johannesburg

Johannesburg

31/03/2023

Link

George Local Municipality

George

31/03/2023

Link

Setsoto Local Municipality

Ficksburg

31/03/2023

Link

Overstrand Local Municipality

Hermanus

03/04/2023

Link

Ga-Segonyana Local Municipality

Kuruman

06/04/2023

Link

Kouga Local Municipality

Jeffreys Bay

14/04/2023

Link

Swellendam Local Municipality

Swellendam

14/04/2023

Link

Sol Plaatje Local Municipality

Kimberley

21/04/2023

Link

Ray Nkonyeni Local Municipality

Port Shepstone

28/04/2023

Link

Umdoni Local Municipality

Scottburgh

28/04/2023

Link

City of Cape Town

Cape Town

30/04/2023

Link

Endumeni Local Municipality

Dundee

19/05/2023

Link

Mbombela Local Municipality

Nelspruit

31/05/2023

Link

Disclaimer:

The intention of this page is to guide citizens and empower them regarding their rights to participate in government affairs.

It is recommended that participants make use of an accredited property valuator when lodging an objection to substantiate a legitimate and accurate objection. These professionals should also be able to assist throughout the process of the objection. Please note that OUTA will not be liable for any financial loss due to the information provided for an unsuccessful objection.

Through our Community Action Network (CAN) initiative, we want to guide residents and businesses to better understand and participate in municipal affairs so that we can address the decay and raising rates and taxes of our towns and cities. We believe that active and organised civil society is the future of changing municipal and government performance.

The City of Johannesburg property rates project is one of many actions OUTA will drive under the CAN banner, to facilitate community engagement in order to stimulate fair municipal practices to benefit all municipal residents and businesses.

It’s time to get involved!

It means that the City has determined a new value for your property and charge you a new rate based on this valuation bill from July 2023.

If the City over-values your property, they will overcharge you on rates. You have 45 days to determine whether the City’s valuation is reasonable, based on what your property would have sold for in a market-related “willing seller to willing buyer” value on 1 July 2022.

If the valuation is reasonable, you can relax and prepare for the new charge. You do not have to do anything further.

If it’s not fair, you need to object within this 45-day period to ensure the City reviews this valuation on your property.

From July 2023, YOU will have to pay what they charge you in accordance to what they deem your property value is. If you don’t object, you accept.

Did you know:

What is a valuation roll?

A valuation roll is a legal document that consists of all registered properties within the boundaries of a municipality and forms the rates base for the municipality.

How does the city value your property?

The purpose of the general valuation roll (GVR) and its supplementary rolls is to determine categories and market values for all registered properties within a municipality. The valuation is done on a pre-determined date as required in the Municipal Property Rates Act of 2004 as amended (MPRA) and uses the principle of willing buyer and seller in an open market to determine a fair price. There are several types of properties in the municipality – residential, sectional title, non-residential, agricultural etc. Each of these properties are valued using different valuation methods, although they all relate to the market value. For example, residential property (including sectional titles) are valued using the comparable sales method. Most commercial properties (including retail, offices, warehousing) are valued using the income capitalisation method, whilst institutional properties such as schools, hospitals and clinics are valued on a depreciated cost method. When valuing the properties, the municipal valuer establishes the market conditions as at the date of valuation, based on recent sales and market information in the various areas. This, therefore, takes into consideration areas where values have decreased, increased, or remained unchanged due to the current state of economy at the date of valuation.

What is the significance of the date of valuation?

When valuing the properties, the municipal valuer establishes the market conditions, as at the date of valuation, based on recent sales and market information in the various areas. The economic factors assist the valuers to determine movement in the market which could result in an increase, decrease or stagnant value being determined compared to the previous valuation roll.

When will the new valuations and rates take effect?

The effective date of implementation refers to the implementation of the general valuation roll. The implementation coincides with the new financial year of the municipality which is 1 July.

What is a supplementary valuation roll?

The City is compelled by legislation to conduct supplementary valuations on all properties where a change has occurred as prescribed in Section 78 of the MPRA. For example: A vacant property that is subsequently improved with a dwelling, may have been listed in the main GVR under the vacant category and vacant value, but once developed (improved) the supplementary valuation will change the category to residential and the value would reflect the improved value of the land and improvements. For each supplementary valuation, the owner will be informed in writing of the details of such valuation by means of a Section 78 notice. The owner will have an opportunity to request a valuer to review the value if the owner is not in agreement with the value and / or category. All supplementary valuations done in a specific period will be combined in a supplementary valuation roll which will be open for inspection and objection as prescribed.

What can I do if the value reflected in GVR 2023 is incorrect?

When the general valuation roll opens for inspection and objection, the customer can visit official objection centres and submit an objection to any entry in the valuation roll, during the prescribed period. The municipal valuer will issue a municipal valuers’ decision (MVD) that will be sent to the customer. If the customer is not happy with the decision, they can lodge an appeal during the prescribed period. This process for the current valuation roll was done between 20 February and 6 April 2018 so this process is closed. The anticipated objection period for GVR 2023 will be between February and April 2023. If the customer misses the opportunity to object, there is an opportunity to raise a query with the City’s valuations section. The customer should provide enough information to assist the municipal valuer in the decision-making process.

Is the municipal valuer's decision final?

Residents who disagree with an objection outcome can lodge an appeal but must include evidence to substantiate their appeal. The Section 53 notice (objection outcome notice) will indicate the period in which to lodge an appeal as well as the venue where the appeal forms can be collected and returned before closing period. Appeals will be heard by the Valuation Appeal Board, which is an independent body appointed by the MEC for Local Government under section 56 of the MPRA. The board consists of a legal representative (an advocate or attorney) and two professional valuers registered at the SA Council for Professional Valuers. The appeal board will review and either confirm, amend or revoke the decision of the municipal valuer.

What if the municipal valuer changes the value by more than 10 percent?

If the municipal valuer changes the value by more than 10 percent upwards or downwards, the Section 53 notice (objection outcome notice) will indicate whether a compulsory review is applicable. A compulsory review by the Valuation Appeal Board will apply in terms of Section 52. The board will review and confirm, amend or revoke the decision of the municipal valuer. It is therefore very important that property owners read the Section 53 notice that reflects the outcome of the objection and whether the value increased or decreased by more than 10%.

Why does the municipal market valuation differ from the estate agents' valuation?

The date of valuation refers to the date at which property values are determined and is fixed for the purpose of GVR 2023 as 1 July 2022. Estate agents determine the value of a property as at today’s market which might differ significantly from the market of 1 July 2022.

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It means that the City has determined a new value for your property and charge you a new rate based on this valuation bill from July 2023.

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