KNYSNA NEWS - Ward 9 in Knysna, the ward that contributes by far the most in terms of property rates for the municipality, was initially omitted from the municipality's public participation process for the Draft Valuation Roll – until Ward Councillor Sharon Sabbagh stepped in.
After complaints were received from homeowners in the ward, she met with municipal officials and now there will be two meetings for Ward 9, one today (Thursday 26 January), and one tomorrow (Friday 27 January). Sabbagh said she was "pleased to announce" that both the Valuer and Valuation staff of the municipality will be present.
Since starting last week, six public meetings in Knysna to highlight the importance of providing input into the Draft Valuation Roll have been met with full-house audiences.
Sabbagh said should property owners not take the opportunity to inspect the valuation roll and submit an objection, they will be subject to rates and taxes reflected in the Draft Valuation Roll, from 1 July 2023 for a period of five years.
Sharp rise in valuation
Some properties have increased in valua-tion by up to 300%, while others remain constant. She said many properties in the 'northern areas' are valued at R128 000 and show the owner as Knysna Municipality, resulting in revenue lost as these properties are not subjected to rates and taxes.
"I have addressed [the matter] with the Valuer. It is important to note that the rating of properties needs to be on a fair and equitable basis," said Sabbagh.
Sabbagh said property owners need to to scrutinise the roll carefully and check the property category, the valuation of their property, together with the erf size and registered owner as reflected on the roll.
The Valuation Roll
The new valuation roll kicks in on 1 July this year, based on a valuation date of 1 July 2022.
"The valuation roll for which we are currently being billed rates and taxes on covers the period 1 July 2017 to 30 June 2023, which valuation date is 1 July 2016, (this valuation roll was extended for one year and therefore valid for a six-ear period as allowed in terms of Section 32 of the MPR Act)," said Sabbagh.
The rates and taxes are calculated based on three criteria – property value, property category and tariff applicable to the category of property.
"For the Draft Valuation Roll for 2023 to 2028 we are currently dealing with the first two criteria and the third, the tariff, will only be determined during the budget process," said Shabbagh.
The public will then (between April and May) have an opportunity to submit comments during the budget public participation process.
A chance to increase revenue?
Asked whether municipalities use the process to increase revenue, Sabbagh said municipalities increase revenue "every financial year, during the budget process, by adjusting the tariffs, which in terms of rates is the tariff applicable to the category of property".
"One would normally expect this to be increased in accordance with inflation," she said.
"With the increase in property values in the Draft Valuation Roll 2023 to 2028, I expect the tariff to reduce for the following reason: currently our municipal budget is R1-billion, of which about R300m is collected from rates and taxes.
"One would expect the R300m to increase by inflation, say 7%, and once the property categories and values have been concluded, a tariff is calculated which will effectively cause the revenue from rates and taxes to increase by inflation, to arrive at the increased amount of R321m."
Objections must be submitted by Monday 30 January on the prescribed municipal objection form or can be emailed to valuations@knysna.gov.za.
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