From time to time, municipalities reassess property values to ensure they align with the current market conditions. These valuations are used to determine the rates you need to pay and, in some cases, even additional service charges. Bearing in mind that these rates can remain locked for several years, it becomes critical for households to ensure that the valuation is realistic so that household budgets are not impacted, especially at a time when electricity prices have already been increased.
Recently there has been a wave of updated municipal property rates from some 30 local governments, which they are entitled to do every four to five years through a General Valuation (GV) roll. These are publicly advertised to allow for inspection and/or objection, but there are no guarantees that you may be informed officially due to postal delays.
The roll is open for a minimum of 30 up to 60 days. If property owners feel the valuation is incorrect, you can initiate a review of the increase by lodging a formal objection. Note that this is not the same as a property valuation from an estate agent or a bank (property valuations all you need to know).
Among the current batch of revised valuations are the large municipalities of The City of Cape Town, Steve Tshwete, Ethekwini Metro, Sol Plaatje, and the City of Tshwane, and a number of smaller towns, including Umdoni, Emlahleni, Rand West City, and so on.
Before you check your individual property valuation, you should explore whether your municipality is one that has revised its valuations. You can do this by individual municipality search or consider using Rates Watch site https://www.rateswatch.co.za/#.
How to check your property valuation
You can use a number of avenues to check your current valuation and compare it to the new one, but do not depend on your invoice alone:
- Municipality websites (valuation roll section).
- Municipal offices.
- Service providers like Rates Watch.
What to verify
- Valuation amount: Does it align with realistic market value? (Note that market value is a fluctuating value determined by buyer demand).
- Valuation date: This is critical. The value must reflect the market on a specific date—not current conditions.
- Property details: Size, improvements, and features must be accurate.
- Category classification: Residential, commercial, agricultural, or other.
How to work out your actual valuation
A common mistake is to compare the valuation to current market trends. This step-by-step calculation can help (using the City of Johannesburg as an example):
- Find the market value: Look up your property on the municipal General Valuation Roll or your monthly invoice.
- Deduct exemptions: Most municipalities offer a threshold reduction or exemption. For example, the municipality subtracts the first R300,000 from the market value of residential properties.
- Calculate the rateable value: market value - exemption = rateable value.
- Apply the tariff: Multiply the rateable value by the tariff (cents in the rand) set by your council.
- Divide by 12: Divide the annual amount by 12 for the monthly rate.
Example calculation:
- Municipal market value: R1,000,000
- Residential rebate: -R300,000
- Rateable value: R700,000
- Hypothetical tariff: 0.009545 (or 0.9545 cents in the rand)
- Annual rates: R700 000 x 0.9545 = R6 681.50
- Monthly rates: R6 681.50 = R556.79
Property categorisation
It is very important to ensure that your property is properly categorised because it can significantly inflate your municipal bill. The categories are: residential; business/commercial; agricultural; and industrial. The tariffs differ substantially. You should check if your property is categorised based on its actual use, but be warned that operating a home-based business can trigger reclassification.
How to submit an objection
If the valuation or classification appears incorrect, you have a limited window to act. Be precise and provide evidence because general dissatisfaction is not sufficient. This is the objection process:
- Complete the prescribed municipal objection form, which you obtain from the municipality.
- Submit within the official objection period (often around 30 days).
- Provide supporting evidence, such as:
- Comparable property sales (aligned to valuation date).
- An independent valuation.
- Photographic or structural evidence.
Potential outcome and appeals
The municipal valuer reviews all objections. The decision will be made whether to adjust the valuation, revise it, and correct any billing anomalies or reject the request. While this process is active, property owners must pay their invoices to avoid penalties or shutoff of services in extreme cases.
If rejected, there is an appeal pathway. You will need to request, in writing, reasons for the decision before lodging an appeal with the municipal appeal board. Following this will be an independent panel review, an opportunity for you to present evidence in person or by via representation, and input by a professional valuer.
Should this appeal fail, it will need to be escalated through the legal court system, which can be complex and costly.
Your action checklist
- Review your property valuation immediately when you become aware of municipal valuation increases.
- Verify classification and property details.
- Align your assessment with the official valuation date.
- Gather credible, date-relevant evidence.
- Submit objections within the deadline.
- Monitor municipal tariff and policy updates.
Bottom line
In an environment of rising municipal costs, property owners who actively manage their municipal bills and ensure their property value is fair are positioned to better control household spending and ensure they can afford to live on their property of choice.
