The Municipal Property Rates Act, 2004 (MPRA) provides for the regular updating of valuation rolls. New valuation rolls must be compiled at least every four years, by all municipalities in South Africa, but it is crucial that the roll that is in use be maintained.
New rolls will take the changes in the general market conditions into account, while changes to the property must be addressed by means of supplementary valuations.
Supplementary valuations must be made in respect of a property under the following circumstances:
- Omitted from the valuation roll;
- Included in the municipality - this will occur when there is a change in the boundary of the municipality;
- New subdivisions and consolidations;
- The market value has substantially increased or decreased - this is to provide for new buildings, additions to buildings, rezoning and where buildings are destroyed;
- Substantially incorrectly valued;
- Re-valued for any reason - a change in the general market conditions does not trigger a supplementary valuation; and
- There is a change in the category.
Supplementary valuations must reflect the market value of a property as at the date of the general valuation. This means that a change in the general market conditions since the general valuation, must not be taken into account. The current downturn in the property market must therefore, be ignored if a supplementary valuation is made.
Rates on a supplementary valuation become payable from:
- The effective date of the supplementary roll where the property was omitted, substantially incorrectly valued and where the property was re-valued. This means that the rates cannot be backdated;
- The date when the property was included in the municipality;
- The date on which the subdivision or consolidation was registered in the Deeds Office; and
- The date when the building was completed or destroyed or when the rezoning was promulgated.
The MPRA determines that municipalities must at least once a year prepare a supplementary valuation roll. There is nothing stopping a municipality from advertising a supplementary valuation roll every month, but it is highly unlikely to happen, as the cost and the administrative burden may be prohibitive.
The objection process is similar to that of the "main" roll. Rates Watch is monitoring all new supplementary rolls and will inform you if your property is affected.