The 618 000* rate-paying home owners in Cape Town could be in for a steep property rates hike for 2019, says Sandra Dickson, co-founder of civic action group Stop COCT.
Speaking to the newspaper from her office in Brackenfell last week, Dickson explained why.
“The average property value increase of 34% as verified by the City, equates to an average rates increase of 34%, should the Rate-in-the Rand value of 0.7% remain the same,” she says, adding that this was not well received by members on the organisation’s website group Dear Cape Town.
“Comments on the group vary, but was mostly negative as some property valuations have almost doubled, but in some cases like in Joostenbergvlakte a decrease was reported,” she said.
Moreover, Dickson explained, the City will only determine the Rate-in-the-Rand value, by which the actual rates are calculated in April, after the objection period on valuations close.
“It is highly questionable why the City would be determining the actual rates increase after the objection periods against property valuations had closed, as the Rate-in-the Rand may be changed,” she says.
“If this value is left unchanged, most owners will have an average increase of around the 34% estimate, as mentioned, but if this value changes which is not known at this stage, rates could be even higher.” Therefor, according to Dickson, it is imperative, that this value be made public sooner (before the close of objections) than later.
Mayco member for Finance Ian Neilson on Friday, told the TygerBurger that the current Rate-in-the-Rand must still be determined, but that a lower rate can be expected to compensate for the overall average increase in property prices across the city.
“The Rate-in-the-Rand will be published with the tabled budget for 2019/20 that will be put out for public comment after the Council meeting at the end of March 2019,” he said.
