BLOEMFONTIEN – The new valuation roll for properties in the Mangaung Metro will see residents pay on average 14% more for residential properties, and 22% for businesses. Owners of properties in the metro have until 31 March to see the new valuation roll and to make objections.
This is part of the process in which the valuation of properties needs to be adjusted every four years by an external valuator.
DA councilor Frans Bothma says there are a number of changes introduced with the new valuation role. The largest of these is the introduction of the levy on property taxes for residents of smallholdings.
Smallholdings that are considered farmland used to receive a 75% discount as a whole. Now these properties are going to be taxed at standard property rates while the land still gets a 75% discount, regardless of whether there are agricultural activities or not. Businesses on smallholding will pay four times more taxes, just like other businesses.
The metro’s manager of revenue, Kolisang Rapulungoane, explains an independent appraiser handles the valuation process and it is based on market values.
“Where there have been additions or where properties have been taxed disproportionately to other similar properties in the area, this is now being rectified with the new valuation roll,” says Rapulungoane.
Numerous residents who had already looked at the valuation roll, saw that their properties are now valued to around R180 000 to R400 000 higher. According to comments on Facebook, residents are proposing mass actions against the new valuation role.
DA councillor Tjaart van der Walt, says individuals who are not satisfied with the new valuation roll must now object in writing.
The appraiser will look at all the objections received after 31 March. People who are not satisfied with the feedback can get the reasons for an undisclosed fee.
Those who are still not satisfied, can appeal. A Valuation Appeals Board will look at the appeals and give judgment that is enforceable.
“Residents may not be able to withhold their property taxes while waiting for a response to an objection,” Rapulungoane says.
Van der Walt says although residents can object to the municipal valuation price – which determines the property tax on a site – at any time, now is a good time because it can take a long time if submitted after the deadline. Residents can visit the metro’s webpage before 31 March to see their property’s new valuation and to get the link for an objection.
Bothma says property owners 60 years and older can apply for exemption of the first R300 000 of the value of their property for property tax purposes.
The new valuation roll will apply from 1 July to 30 July 2030.
Van der Walt says the DA proposes that the Mangaung Metro adopt an affordability-focused tariff approach similar to that implemented in leading metros.
“Evidence from other metros shows that responsible tariff adjustments can ensure fairness, with many properties paying the same or less despite higher valuations.
“Mangaung should conduct and publish a distribution impact analysis and adjust tariffs accordingly to protect affordability and support local economic activity,” he says.
