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Municipal Rates

Category April 2019

MUNICIPAL RATES
In our previous newsletter we discussed the latest Municipal Valuations and objections to overstated valuations (Online deadline: 30 April 2019).

The 2019/2020 Draft Budget for City of Cape Town has now been published and the other factors used in calculating Property Rates are as follows:
Residential Exclusion: R300 000 (previously R200 000)
Rate in Rand: 0.00555 (previously 0.007154)

The Residential Exclusion and Rate in Rand are expected to be finalised in May 2019.

As a reminder, we summarise below the method for calculating your monthly Property Rates:

            RANDS

Municipal Value

                       3 400 000

Less: Residential Exclusion

                          300 000

Net

                       3 100 000

Rate 0.00555 x 3 100 000

                            17 205

Monthly Property Rates:  17 205 x 1/12

                              1 434


The reduction of the Rate in Rand means that, as a rule of thumb, only properties which have a municipal valuation which has increased by approximately 30% or more will pay a higher monthly Property Rates amount, effective July 2019. Conversely, if your Municipal Value has increased by less than 30%, your monthly Property Rates will decrease.

According to the City's Draft Budget, the new Property Rates calculations will affect residential properties as follows:

19% of properties will not have a Property Rates charge

42% of properties will have a decreased Property Rates charge

39% of properties will have an increased Property Rates charge.

The City's Draft Budget can be accessed online by following this link: http://www.capetown.gov.za/Family%20and%20home/Meet-the-City/the-city-budget/the-citys-budget-2019-2020

If you would like to check your estimated Property Rates charge , effective July 2019, please follow this link: http://web1.capetown.gov.za/web1/gv2018/SearchProperty, insert your Erf number / site address, find your property (you may need to scroll through more than one electronic page of properties) and click on the Municipal Value.

Author: Laurence Van Blerck

Submitted 24 Apr 19 / Views 277
 
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