Real Estate Investor Magazine South Africa November 2015 | Page 36

LEGAL

Changes to

Municipal Property
Rates Act

Supplementary valuations
and review procedures
BY JERRY MARGOLIUS

T

he municipal valuer, in accordance with the
amended Municipal Property Rates Act
has now implemented a review process for
supplementary valuations. Supplementary valuations
take place periodically after a general valuation,
the date of valuation for the last general valuation
being 1 July 2012 for the City of Cape Town (other
metropolitan areas may differ but a similar process may
still be instituted). The supplementary valuations arise
for numerous reasons e.g. new buildings, alterations,
incorrect valuations, since 2012 etc.
Property owners on receipt of the notice (NOTICE)
that a supplementary valuation is being conducted
on their property, have the opportunity to have their
property valuation as stated on the notice to be
reviewed. This means that an owner has 30 days (or the
date as more specifically noted as “the Closing” date) to
request the review by completing the applicable Review
Form. However, you will be obliged to pay the rates as
from the effective date as noted on the NOTICE until
the valuation is reviewed. Once a new review has taken
place you will be advised of the “Reviewed Value” and
your rates will be adjusted accordingly.
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NOVEMBER 2015 SA Real Estate Investor

As in the past whereas you only paid rates on
the property once it appeared on the valuation roll,
this is no longer the case as the rates remain payable
on the Reviewed Value (or if no review value, the
supplementary value).
Following this process,
the municipal valuer is still obliged to prepare a
supplementary valuation roll (SV). For example Cape
Town is currently addressing their SV08 i.e. the eight
supplementary roll.

As in the past whereas you only paid
rates on the property once ]\X\