The City of Cape Town has announced that it would increase the rates and taxes rebate for city property owners beginning in the fiscal year 2023/24.
According to the city, the refund for all homes worth under R5 million would increase by 52%, from R285,000 to R435,000.
This is in addition to the statutory R15,000 exemption for all homes, which means that the first R450,000 of the value of such residential properties will be free from paying rates, according to the statement.
The city’s mayoral committee also approved lifting the highest qualifying level from R17,500 to R22,000 total monthly household income, with effect from 1 July 2023 to allow more retirees and social grant recipients benefit from rate discounts.
“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 stated that the measures are being implemented to relieve household pressures caused by the country’s growing cost of living.
The statement comes after the city’s General Valuation Roll 2022 was made available to the public for review until April 30, 2023. The city registered 909,000 rateable properties in the most recent roll, valued at R1.7 trillion in total property value.
A new rates estimate calculator will also be available on the city’s website beginning February 27, 2023, providing a simple tool for property owners to see what their projected rates might be beginning July 1, 2023, according to the announcement.
Formerly, the proposed rate-in-the-Rand was usually only introduced at the March Council meeting, after the inspection period had expired.
“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.
Municipalities in metropolitan areas are obligated by law to conduct appraisals every four years. The roll decides how much property owners contribute to the rates account.
According to the city, charges are used for shared services such as fire departments, libraries, recreational facilities, 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 example, the needed rates to pay for shared services in the fiscal year 2023/24 will be roughly R11.8 billion. According to the city, the most recent valuation roll was focused on buffering medium and lower income valued property as much as feasible without jeopardising service delivery.
Metropolitan municipalities are required by law to conduct 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.
