the dplgDepartment:Provincial and Local GovernmentREPUBLIC OF SOUTH AFRICA

MUNICIPAL PROPERTY RATES ACT

STEP-BY-STEP GUIDEON VALUATION AND RATING

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Implementation ofvaluation roll & rates policy

Council approves by-lawsto give effect to rates policy

Last day for inspection &objections regardingthe valuation roll

Advertise draft by-laws to give effect to rates policy

Draft budget tabled in Council

Public notice forinspection of valuation roll

Submission of certifiedvaluation roll

Commencement of general valuation

Council approvesrates policy

Last day for commentson draft rates policy

Advertise draft rates policy for public comment

Tabling of the draftrates policy to council

Development of thedraft rates policy

Finalise the appointmentof private valuers

Invite tenders for valuersin private practice

2 July Year 2 determined as date of general valuation6

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TIME SCHEDULE FOR HANDLING THE

FIRST GENERAL VALUATION IN TERMS OF

THE MUNICIPAL PROPERTY RATES ACT

EXPLAINED IN DETAILS

6 April Year 1 Council determines 2 July year 2 as a date of general valuation

• Sec 31 of the Act

12 April Year 1 Invite tenders for private valuers

• Sec 33(2) of the Act, if municipality has no internal capacity

5 July Year 1 Finalisation of the appointment of private valuers by the municipality

10 July Year 1 Development of the draft rates policy in terms of the Act

• Sec 3 of the Act

* It is recommended that 2 months be provided for the development of the draft rates policy process.

10 Sept Year 1 Tabling of the draft rates policy in the council

Date Action

3

In terms of the Municipal Property Rates Act, municipalities have a maximum of 4 years from 2 July 2005, in which to come up with a valuation roll. The Time Schedule below provides a 3-year period for a municipality to commence and complete processes around valuation and rating policy. Year 3 refers to the year in which the valuation roll in terms of the Act is implemented. For example, if municipality x intends to implement the valuation roll on 1 July 2008, then its Year 1,2 and 3, will be 2006, 2007 and 2008 respectively. By 1 July 2009, all municipalities must implement valuation rolls in terms of the Act.

20 Sept Year 1 Advertise the completed draft rates policy which has been approved by the Council for 60 days for public comment

• Sec 4 of the Act.

* It is recommended that for a draft rates policy done in terms of the Act, an allowance of 60 days be provided for public comment

20 Nov Year 1 Last day for public comments on draft rates policy

10 Jan Year 2 Council approves the rates policy taking into account public comments

• Sec 4(3) of the Act

20 Jan Year 2 Commencement of general valuation

• If there are many newly rateable properties more time may be required to complete general valuation.

* For the purposes of this time schedule, 12 months has been used.

1 Feb Year 3 Submission of the certified valuation roll to the municipal manager of a municipality by the valuer of the municipality

• Sec 49 of the Act

* Municipalities must ensure that property categories reflected in the rates policy in terms of section 3 of the Act and in the valuation roll in terms of section 48(2) of the Act are the same.

Date Action

4

21 Feb Year 3 Publishing of a public notice calling for inspection of and lodging of objections to the valuation roll

• Sec 49 of the Act

* It is recommended that the inspection of the property valuation roll and lodging of objections be done simultaneously, and 60 days be provided for this process (From 21 Feb year 3 to 21 April year 3)

1 April Year 3 Draft budget is tabled at a council meeting

• Sect 16 of Municipal Finance Management Act, 2003 (Act No. 56 of 2003)

6 April Year 3 Advertise the draft by-laws approved by Council for public comment to give effect to the rates policy

21 April Year 3 Last day for inspection of and lodging of objections to the valuation roll

20 May Year 3 Council adopts by-laws taking into account public comment to give effect to the rates policy

• Sec 6 of the Act

1 Jul Year 3 Valuation roll and rates policy together with the municipal budget takes effect

• Sections 3 and 32 of the Act

Date Action

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Correspondence:The Director-General

Attention: Communication DirectorateTel: +27 12 334 0600Fax: +27 12 334 0813

Website: www.dplg.gov.zaE-mail: mpra@dplg.gov.za

ISBN: 0-9585020-1-3

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