Need to Know: Property Valuation for Rates Purposes

According to Section 139 of the Constitution, municipalities across South Africa have the right to value properties for rates purposes in order to earn income for the municipality and this process is governed by Chapter 14 of Property Act 6 of 2004.  The following information has been taken directly from the Act to assist our concerned ratepayers in understanding the process, their rights and the key timelines for making objections.

Property valuations can legally be done annually by the municipality; however the municipality has the discretion to extend the period between valuations to up to 4 years.  Valuations are based on market values where there is a willing buyer and willing seller, and they must be completed within a 12- month period prior to the forthcoming budget.  Certain properties may qualify for exemptions from rates and therefore valuations, such as schools or properties used for religious purposes but these exemptions must be applied for. 

Once valuations are complete, they must be gazetted and notice must be given of the completion of valuations in local media and on the KDM website for two weeks.  Thereafter, the valuations roll must be available for inspection for no less than 30 days.  At this time, concerned ratepayers who do not agree with the valuation of their property have 30 days from the date of publication to object to their valuation in writing to the Municipal Manager.  This written letter must contain the reasons why the ratepayer objects to the valuation (i.e. disagreement with market value etc.) 

On receipt of the objector’s letter, the Municipal Manager has 14 days to refer the matter back to the valuator and the Municipal Manager must acknowledge receipt of the objector’s letter.  Within 21 days the valuator must reply to the Municipal Manager with reasons for either agreeing or disagreeing with the objection. The valuator must then write to the Municipal Manager stating either agreement or disagreement with the objection and the Municipal Manager must advise the objector of the valuator’s opinion.  Should the objector still disagree with the valuator, the matter can then be referred to the Appeal Board.

The Appeal Board consists of a Chairman and a group of qualified valuators.  Requests for referral to the Appeal Board must be made in writing by the objector to the Municipal Manager.  Matters referred to the Appeal Board bear a fee to be paid by the objector which is prescribed by the Board.  The Board must, within 60 days, do an evaluation of the objection to make a ruling on the matter and this ruling is final.  Rates cannot be applied to the following financial year until all valuations have been approved. 

Should you wish to make an objection to your property valuation objection forms will be made available at all inspection sites and online on the KDM website.  Written objections and/or objection forms should be posted by registered mail to:

The Municipal Manager
P.O. Box 72
KwaDukuza, 4450, or
emailed to municipalm@kwadukuza.gov.za, or may be hand-delivered to:

General Justice Mpanza Buildling
Corner of Mahatma Gandhi & Gizenga Streets, KwaDukuza or,
Nokukhanya Luthuli House, 10 Leonora Drive, Ballito.

Please note that the official closing date for objections for 2021 is 30 April 2021.

For access to the General Valuation Roll, please click here:

http://www.kwadukuza.gov.za/index.php/valuation

For access to the Municipal Property Rates Act of 2004, please click here:

https://www.docrra.co.za/wp-content/uploads/2021/03/Municipal-Property-Rates-Act-2004.pdf

To download an objection form, please click here:

DOCRRA continues to work to bring more information on this topic to the community and any and all information will be made available on our website.  If you are a member and you wish to object and need more information or have any further questions regarding the process, please do not hesitate to reach out to DOCRRA on admin@docrra.co.za or via our social media channels.

DOCRRA Members-Only Resources:

We are pleased to be able to offer two ‘members-only resources’ for DOCRRA members who have paid membership dues for our new financial year (2021-2022). 

  • Legal Opinion: A legal opinion on the legal prescriptions of property valuations for the purpose of municipal rates was obtained by DOCRRA and includes an explanation of the Municipal Property Rates Act, as well as information on relevant case law pertaining to this process.
  • Lightstone Individual Property Valuation Reports: DOCRRA has also obtained a Lightstone subscription to provide a limited amount of  individual property valuation reports to our members. We are happy to provide reports for members but remind them that this is not a replacement for a professional valuation by an estate agent. The reports serve as a guide for members to determine whether their valuation is in line with market values and use that data to help determine whether they would like to object and/or seek a professional valuation.

If you are a current DOCRRA Member, and would like access to these resources, please email us on admin@docrra.co.za. If you are not a member, and would like access to these reports, please join DOCRRA here: https://www.docrra.co.za/membership/#registration.

DOCRRA Survey Form: KDM Property Re-evaluation

Serving our membership base when it comes to critical issues such as property valuations remains our top priority and, therefore, we have created an easy-to-use survey for you to complete so we can get your feedback.  Your experience and concerns are important to us, but we need to hear from you so we know how to serve you best.  Please take 5 minutes to complete our survey by clicking below:

Your feedback will ensure that we seek information from sources that will answer your questions and provide clarity on the issues that matter to you most.  The data you provide will also put us in a better position to negotiate with the municipality on the forthcoming budget, which will take effect on 1 July 2021.  If you have any difficulty with the survey, please do not hesitate to reach out to us on admin@docrra.co.za.

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