Rates Policy – Update

THE GREATER CAPE TOWN CIVIC ALLIANCE’S  (GCTCA’S) POSITION ON THE CITY OF CAPE TOWN CITY’S MUNICIPAL PROPERTY GENERAL VALUATION  (GV)  SYSTEMS AND PERFORMANCE.

15 May 2011

After various unsuccessful attempts to initiate a new and accurate GV system and, in the then absence of any Act of Parliament in terms of which to execute such GVs, the City of Cape Town initiated its new  Market Value  related computer-assisted mass appraisal  GV  system in the early 2000s.

It was the first municipality in South Africa to do so and, building on the City’s experience, the National Government passed the Local Government Municipal Property Rates Act 6 of 2004 for the whole of South Africa.

The City of Cape Town has subsequently completed two GVs since that date, in 2006 and 2009.

The GCTCA executed in – depth audits on both of the above two audits and submitted them to the City and the Provincial and National Governments.

Regrettably, none of the above authorities took much, if any, notice of the GCTCA audits nor of the two  independent audits prepared at the City’s request by the International Property Tax Institute (IPTI), which agreed with the GCTCA’s audits that there was much room for improvements in its last two GVs

The situation, as perceived by the GCTCA at present is that there is a dire need for a new approach to the methods which have been used by the City in its last three GVs.

To this end, it intends approaching the Western Cape Provincial Government, in the person of Minister Anton Bredell to pursue his own suggestion to organise a public enquiry and technical workshop attended by all the GV players to attempt to establish a much better and more equitable GV system for the City of Cape Town and other cities and towns to use in their future GVs.

The current systems being used by the City of Cape Town and elsewhere are far from ideal or acceptable and need a completely new methodology for an ongoing problem which continues to be producing GVs which are producing valuations and objection processess which are unevenly unfair and  continually variable for seemingly inexplicable and unsolved reasons.

Len Swimmer
Chairman

View: Audit by the GCTCA of the City of Cape Town’s 2009 General Valuation

View: Audit by the GCTCA of the City of Cape Town’s July 2006 General Valuation

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