So, how are your rates and taxes calculated then? This is not a straightforward process and involves intricate calculations, especially for municipal services such as water and electricity, which are based on fixed charges (per ampere/phase and energy charges (per unit). Property rates are usually calculated from annual valuation rolls prepared by municipalities to determine property values. This market value is then multiplied by the appropriate property rate (residential, commercial, and so forth) to determine the amount payable for that specific property.
Luckily, in South Africa, the Municipal Property Rates Act provides for certain exemptions, reductions, and rebates for property rates. The most important one for purposes of this article is the rebate allowed to owners of property situated in an area affected by a disaster as defined by the Disaster Management Act 57 of 2002 or any other serious adverse social or economic conditions. To be sure whether you can apply for this rebate on your property when it was damaged due to wildfires or floods, one will have to look at the said policies of the municipality under which your property falls to understand the process to be followed in order to have the rebate applicable to your property. It is important to note that these rebates are not automatic or indefinite; they must be applied for, and the municipality has discretion over how long they will be allowed.
In general, there seem to be two options available to a property owner, depending on whether they intend to rebuild. Should you elect to rebuild the property immediately after the disaster, you can apply for a special rebate to be applied to the property during the construction period. Should you elect not to rebuild immediately after the disaster, you can apply for a re-valuation of the property, and, upon acceptance by the municipality, a lower rate will apply to that specific property.
To conclude, it is important to apply for your rebate as soon as possible after the property damage occurs. This application must be in line with the bylaws and property rates policies of your local municipality. Certain forms must be completed, and proof of the damage must be provided for the municipality to assess the application. Some municipalities have strict timeframes within which the application must be submitted to them, and, if all is in order, the municipality will assess your application and, once approved, your rates will be adjusted accordingly for the period set out in the municipality’s approval conditions.
Disclaimer: This article is the personal opinion/view of the author(s) and does not necessarily present the views of the firm. The content is provided for information only and should not be seen as an exact or complete exposition of the law. Accordingly, no reliance should be placed on the content for any reason whatsoever, and no action should be taken on the basis thereof unless its application and accuracy have been confirmed by a legal advisor. The firm and author(s) cannot be held liable for any prejudice or damage resulting from action taken based on this content without further written confirmation by the author(s).
