NMBM Statement on Calls for Revaluation of Properties and Rates
www.MyPE.co.za: The
Nelson Mandela Bay Municipality has noted, with some concern, that a
certain “T Mokorotlo” has placed a rather expensive advertisement in a
local publication, which makes some remarkable claims, and which
further calls on ratepayers in Nelson Mandela Bay to block the
implementation of the Property Rates Act.
Whilst the Municipality will not give credence to some of the
outrageous “statements” made in the advertisement by responding
thereto, it is important for all residents of the city to note:
* The Nelson Mandela Bay Municipality’s total budget for the 2009/10
financial year is R7,6 billion, made up of R5,3 billion for
Operational expenditure and R2,3 billion for Capital projects.
* These funds are used primarily for infrastructural development, such
as roads, recreational facilities’ upgradings, and 2010 infrastructure;
and service delivery, including housing, water, electricity, libraries,
arts & culture, waste management, refuse collection, sewage,
parks & greening, beaches, grants-in-aid, and customer service
initiatives and activities such as paypoints.
* Funding of the budget is obtained from various revenue sources
including national and provincial government grants, external
borrowing, service charges, fines, interest earned and property tax
(referred to by most people as “rates”).
* Property tax (or “rates”) only makes up about 10% of the total
revenue for the Municipality (the rest of the NMBM’s revenue is from
the other sources mentioned). In other words, the aggregate or total
amount of all ‘rates’ that the NMBM receives from ratepayers
constitutes about one-tenth of the NMBM’s revenue.
* This total property tax revenue amount (for the 2009/10 budget is
R774,5 million) is then divided by the aggregate value of all
properties in Nelson Mandela Bay and the rate-in-the-rand is so derived.
* It is extremely important to note that:
- If all properties in Nelson Mandela Bay were proportionately
decreased in value, it would NOT affect an individual’s property tax,
as every property owner’s tax is worked out in relation to – and as a
percentage of – the total property tax revenue amount. In the same way,
increasing all property values across Nelson Mandela Bay, will again
NOT affect one’s property tax.
- Embarking on another general property valuation exercise will cost
the NMBM (and thus the ratepayer) approximately R35 million, an amount
that the NMBM and its residents can ill-afford at this time.
- According to the Property Rates Act, valuations must be undertaken
every four (4) years.
* Finally, the Property Rates Act was passed in to law (in other words,
became legally binding on all Municipalities and residents) in 2004.
Its key objective was, and still is, to ensure a more equitable
calculation of property tax, given the previous unfair, unequal and
divisive manner in which property taxes were calculated.
* The NMBM’s Rates Policy (adopted in 2009) provides generous
exemptions, rebates and reductions to marginalised and special groups
such as pensioners, NPOs, people with disabilities, and sporting bodies.
* The Rates Policy (of 2009) and the 2009/10 Budget (like all NMBM
Budgets) was extensively consulted with the public and all stakeholders
before its drafting and, in the case of the Budget, imminent adoption.
* Unfortunately, the NMBM has no record of any correspondence from or
engagement with “T Mokorotlo”. We encourage any resident of Nelson
Mandela Bay to engage with us, should s/he require any clarifications
on the 2009/10 Budget, the valuation of properties and/or Property Tax.
In this regard, kindly call our call-centre at 041 506 5555.
Nelson
Mandela Bay Municipality Contacts.
Port Elizabeth Budget Accommodation
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