FREQUENTLY ASKED QUESTIONS FOR GV 2013
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1. What is a General Valuation?
A general valuation is the valuation of all properties within a municipal area for purposes of rates which is done in terms of the Municipal Property Rates Act of 2004.
2. What is the date of valuation?
The date of valuation is the date at which properties are “pegged” or “fixed”. The General Valuation is tied to a specific date, namely the date of valuation. The new valuation will have a date of 02 July 2012.
3. Why do we have to go through this exercise of property valuation?
The purpose of this exercise is to determine a fair value of all properties.
4. How will my property be valued?
There are 258 054 properties in Nelson Mandela Bay. They fall into two main categories: Residential and Non-residential.
The residential value is based on market value. This is the price that a willing buyer would pay a willing seller for the property on the open market.
The valuation of non-residential properties is slightly different: it is not only calculated on the “willing seller, willing buyer” principle, but also takes into account the location of the property, its condition, and factors such as rental occupancy levels and rental costs, and of course, building costs.
5. Will my rates go up as a result of the valuation?
The total amount of rates collected each year is a budget balancing figure that comprises only some 16% of the total municipal budget, which budget generally rises by around the annual inflation rate each year. It is the increase in the budget shortfall each year that determines the increase in property rates.
The amount that each property owner pays is determined by the value of his/her property in relation to the other properties in the Nelson Mandela Bay Municipal Area.
6. What if I cannot afford to pay my rates?
The Act does allow for municipalities to provide for exemptions, rebates and reductions in their rates policies based on local conditions and circumstances. For the purposes of granting exemptions, rebates and reductions in respect of owners of categories of properties, it may include the following:
- Indigent owners
- Owners dependent on pension or social grants for their livelihood
- Owners temporarily without income
- Owners of agricultural properties who are bona fide farmers
- Owners of Game Parks
- Owners of land where important biodiversity areas or environmentally sensitive areas exist
DID YOU KNOW!
Revenue collected from property rates is used to fund services and infrastructural developments that benefit the community as a whole as opposed to individual households. Such services and infrastructure include street lighting, storm water drains, traffic signals, clinics, libraries, parks and roads.
Through the Integrated Development Plan (IDP) and budget processes of Council, property owners have a voice in determining how rates revenue is spent