SALDANHA BAY MUNICIPALITY
GENERAL VALUATION ROLL 2021:
FREQUENTLY ASKED QUESTIONS
The levying of property rates by municipalities, is goverened by the Municipal Property Rates Act No. Act 6 of 2004 and Regulations (MPRA). The MPRA requires that every municipality must adopt a Property Rates Policy consistent with the MPRA. This includes governing the property rating process by defining the different categories of property for rating purposes, as well as specific categories of property ownership that assist with the provision of rates rebates and exemptions. Property valuation data is compiled in a general valuation roll document, which consists of property information of all registered properties, inclusive of the market value and property category.
1. WHAT IS A GENERAL VALUATION?
A general valuation is the process whereby all rateable properties in the municipality is being valued, including properties partially excluded from rates in terms of the MPRA. All these properties must then be included in the valuation roll. (MPRA section 30)
2. WHAT IS THE VALUATION DATE OF THE PROPERTIES INCLUDED IN THE GENERAL VALUATION ROLL 2021 (GV 2021)?
The valuation date of all properties being valued was 1 July 2021. (MPRA section 31)
3. WHAT IS THE EFFECTIVE DATE OF THE IMPLEMENTATION?
The effective date of the valuation roll is a date the roll is implemented. This usually coincides with the date of the new financial year of the municipality. The customer will be levied rates according to the new general valuation roll from the implementation date. The effective date for GV 2021 will be 1 July 2022. (MPRA section 32)
4. HOW LONG IS THE GENERAL VALUATION FOR SALDANHA BAY MUNICIPALITY VALID?
A general valuation roll is produced, published and valid for a maximum of five (5) years in respect of a local municipality. The GV 2021 of Saldanha Bay Municipality will be valid for four (4) years from the date of implementation. (MPRA section 32)
5. IS THE MUNICIPALITY UTILISING AN INTERNAL OFFICIAL OR A PERSON IN PRIVATE PRACTICE AS ITS MUNICIPAL VALUER?
Salanha Bay Municipality has appointed a person in private practice via a competetive bidding process during the 2020/21 financial year. (MPRA section 33)
6. WHAT IS THE BASIS OF VALUATION USED BY THE MUNICIPALITY?
The basis of valuation is market value; this is the most probable price that a property would realise on the date of valuation, if sold in the open market by a willing seller to a willing buyer. (MPRA Section 46)
7. HOW DOES THE MUNICIPALITY LEVY PROPERTY RATES?
The levying of property rates is done through the establishment of a valuation process. The municipality begins the process by compiling a general valuation roll document that consists of property information of all rateable properties, inclusive of the market value and property category. Different categories are allocated to properties, it is important to understand that these property categories affect the rates being levied. (MPRA section 7 – 15)
8. DOES THE EXTERNAL MUNICIPAL VALUER VISIT PROPERTIES PHYSICALLY WHEN VALUING PROPERTIES?
In terms of section 45 of the MPRA, the physical inspection of properties to be valued is optional, and comparative, analytical and other valuation techniques may be used including:
- Aerial photography; and
- Computer-assisted mass appraisal systems or techniques, taking into account changes in technology and valuation systems and techniques.
As this is a mass valuation process, the Municipal Valuer uses a computer aided mass appraisal system to determine the values of all properties. This is based on statistical analysis and geographical information systems (GIS), and therefore requires reliable and accurate data.
For residential property, obtaining access to all properties is not possible, and as such, the Municipal Valuer makes use of advanced technology that allows the collection of data. This includes the use of building plans and oblique imagery, which allows the Valuer to see the properties from all angles, and is able to measure the extents and heights of the buildings, as well as other information relating to quality, condition and other improvements. This method is acceptable in terms of the MPRA.
In instances where the aerial photography and other imagery is not useable, where properties have a lot of foliage, or high security walls, then physical inspection of the site is undertaken. The data collection process is independently reviewed for quality assurance purposes to ensure that the data collection process was consistent and that the data recorded was correct for the subject properties. For non-residential properties, field visits are undertaken to obtain data such as the property use, rentals and financial records of businesses.
9. WHAT HAPPENS TO PROPERTIES THAT ARE BUILT OR IMPROVED AFTER THE COMPILATION OF THE GENERAL VALUATION ROLL?
The municipality is compelled by legislation to reflect all changes to properties in a Supplementary Valuation Roll. The municipality is expected to produce at least one supplementary roll per year. (MPRA sections 77 – 79)
10. WHAT IS A SUPPLEMENTARY VALUATION ROLL?
A Supplementary Valuation roll is compiled to update the “Main Valuation Roll”. The aim is to correct or update errors, omissions, subdivisions, consolidations, rezoning, township development, building alterations, the construction of new buildings, where the market value of a property substantially increased or decreased for any reason and any other exceptional reasons that may change or affect the value of a property, subsequent to the compilation and publication of the “Main Valuation Roll”. Supplementary valuations are performed during each financial year, according to the market conditions as at the “date of valuation” of the main valuation roll.
11. WHY DOES THE MUNICIPAL MARKET VALUE DIFFER FROM THE VALUE OF ESTATE AGENTS?
The valuation date of all rateable properties within the municipal area is 1 July 2021 and the value will remain for the duration of the valuation roll, subject to a supplementary valuation (see point 10 above) in terms of section 78 of the MPRA. Estate agents determine the value at different dates and is in most instances not backdated to the date of the municipal valuation, as would be the case for the GVR – therein is the difference.
12. WHAT IS THE CONTENT OF THE GENERAL VALUATION ROLL 2021?
The valuation roll must reflect the following in respect of each property as at the date of valuation to the extent that such information is reasonably determinable, and all these entries can be objected against:
(a) The registered or other description of the property;
(b) The category determined in terms of section 8 in which the property falls;
(c) The physical address of the property;
(d) The extent of the property;
(e) The market value of the property, if the property was valued;
(f) The name of the owner; and
(g) Any other prescribed particulars.
(MPRA section 48)
13. WHAT IS THE VALUATION CATEGORIES INCLUDED IN THE GENERAL VALUATION ROLL?
The valuation categories applied by the municipality is outlined in the MPRA as follow:
business and commercial properties;
properties owned by an organ of state and used for public service purposes;
public service infrastructure properties;
properties owned by public benefit organisations and used for specified public benefit activities;
properties used for multiple purposes; and
residential vacant properties.
(MPRA section 8)
14. WHAT DO I DO IF I BELIEVE THE VALUE OF MY PROPERTY IN THE GENERAL VALUATION IS INCORRECT?
The MPRA allows you to object to any entry or omission from the General Valuation Roll (not the valuation roll in totality) provided that such objection takes place in the prescribed manner and within the stipulated objection period. (MPRA section 50). It is important to note that a property owner cannot object to the property rates and cannot defer the liability for the payment of the rates beyond the date determined for payment.
15. WHEN WILL THE VALUATION ROLL BE MADE PUBLIC?
The municipality envisage to receive the certified valuation rolls by 31 January 2022. Thereafter the certified valuation roll will be made public within 21 days from receipt of the rolls. (MPRA section 49).
16.0FOR HOW LONG WILL THE VALUATION ROLL BE MADE PUBLIC AND UNTIL WHEN CAN I OBJECT?
The valuation roll will be made public for 30 days from the date of publication of the last notice and every person who wishes to lodge an objection in respect of any matter in, or omitted from, can do so within the 30 day period prescribed. The municipality will also publish the roll in the Provincial Gazette and in the Weslander local newspaper for two consecutive weeks. A formal notice will accompany these publications that speaks to the right of objection. (MPRA section 49)
17. NOTIFICATION OF OUTCOME OF OBJECTION?
The Municipal Valuer must in writing inform the objector what the valuers’ decision is and whether section 52 applies (change with a variance of more than 10%). The objector and owner will be notified of the Municipal Valuers’ decision. The objector may apply in writing for written reasons of the Municipal Valuer’s decision. Written reasons must be applied for within 30 days after the date of the notification at a fee as proclaimed in the Local Government Gazette, such fee must be paid in advance. The Municipal Valuer must provide written reasons within 30 days of application. If the client is still not happy, an appeal must be lodged within 21 days of receiving the reasons. (MPRA section 53)
18. HOW WILL THE PROPERTY RATES OF MY RATEABLE PROPERTY BE CALCULATED ANNUALLY?
Property rates are calculated in terms of the MPRA by the municipality will be as follow:
Property Rates = Market Value (MV) x Rate in Rand (rate)
Where the Market Value is the value determined by the external municipal valuer as at 1 July 2021 and the rate in Rand is determined and approved by Council in terms of the MPRA and Municipal Finance Management Act (MFMA) and in line with its annual budget processes.
19. IF MY PROPERTY VALUE INCREASES WITH 20%, DOES IT MEAN THAT MY PROPERTY RATES WILL ALSO INCREASE WITH 20%?
No, that will not necessarily be the case. In terms of the annual budget process, the municipality will determine the rate in Rand to be levied to obtain the required property rates Revenue. This then may result that the rate in the Rand be decreased to lessen the financial impact on property owners.
2. DOES THE MPRA MAKE PROVISION FOR EXEMPTIONS, REDUCTIONS OR REBATES?
The property rates policy and tariffs annual approved by Council at least 30 days before the start of the new financial year makes provision for exemptions, reductions and rebates in line with the MPRA. (MPRA section 15). As part of the Budget process the exemptions, reductions and rebates will be made public.