Good news for anyone who owns a property under R5 million in Cape Town
The City of Cape Town says that it is increasing the rates and taxes rebate for property owners in the city, taking effect in the coming 2023/24 financial year.
The city said that the rebate for all properties valued under R5 million will increase from R285,000 to R435,000 – an increase of 52%.
This is in addition to the statutory R15,000 exemption for all properties, which means the first R450,000 of those residential properties’ values will be exempt from paying rates, it said.
The city’s mayoral committee has also passed a proposal to help more pensioners and social grant recipients benefit from rates rebates, by raising the upper qualifying limit from R17,500 to R22,000 total monthly household income, with effect from 1 July 2023.
“These relief measures form part of a package of General Valuation policy proposals to serve at City Council this Friday, 24 February 2023. Final proposals would be reflected in the City’s 2023/24 Budget, which will be tabled to Council in March for public participation,” the city said.
Cape Town Mayor Geordin Hill-Lewis said the measures are being put in place to ease the pressure on households due to the rising cost of living in the country.
The announcement comes after the city’s General Valuation Roll 2022 opened for public inspection until 30 April 2023. In the latest roll, the city recorded 909,000 rateable properties, valued at R1.7 trillion total property value.
A new rates estimate calculator will also be available on the city’s website from 27 February 2023, which will provide an easy tool for property owners to see what their estimated rates could be from 1 July 2023, it said.
With previous valuation rolls, the proposed rate-in-the-Rand was normally only tabled at the March Council meeting, after the inspection period had ended.
“This left property owners guessing the rates liability of their new property valuations. For GV2022, we are asking council to pass provisional rate-in-the-Rand and relief measures on 24 February 2023. This will enable property owners to determine the likely impact on their rates bill using the rates estimate calculator, which will be live from 27 February 2023,” said Hill-Lewis.
Metropolitian municipalities are required by law to undertake valuations every four years. Theroll determines what contributions property owners make to the rates account.
The city said that rates are used for shared services such as fire services, libraries, recreational areas, parks and clinics.
“Every year, the city calculates what income is required for shared services, as set out in the Integrated Development Plan. The valuation of a property determines how much each property owner contributes to the required amount,” it said.
For instance, in the 2023/24 financial year, the required rates amount to pay for the shared services will be approximately R11.8 billion. The city said that the latest valuation roll focused on buffering middle, and lower income valued property as far as possible without jeopardising service delivery.
Legislation requires metropolitan municipalities to undertake a GV at least every four years.
“As always, we encourage residents who qualify to apply to the city for the R4.7 billion in rates and services relief on offer,” the city said.
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