Cape Town - While a revision in the calculation of property rates in the City has been welcomed, concerns have been raised that the poor will no longer retain electricity tariff benefits when the value of their houses goes up.
Council recently approved a move for the first R450 000 of property value to be rates-free, up from R285 000 previously.
The relief measure forms part of a package of General Valuation policy proposals, which served at council on Friday.
Final proposals would be reflected in the City’s 2023/24 budget, which will be tabled to council in March for public participation.
“The first R450 000 of the property value will now be rates free, which represents a major R150 000 increase to this exemption benefit to assist lower and middle-income ratepayers in the city.
“A reduction in the residential rate-in-the-Rand is also proposed, from the current 0.006344 to 0.006273 for 2023/24.
“We are also enabling more pensioners and social grant recipients to benefit from rates rebates by raising the qualifying limit from R17 500 to R22 000 household income per month.
“We have made these proposals to City Council as a way of easing the pressure on households due to the rising cost of living given the national and global economic conditions,” said mayor Geordin Hill-Lewis.
According to STOP CoCT, this translated to a reduction of around R147 a month.
“The announcement of the changes to how property rates are calculated is welcomed and is a much-needed step towards to setting property rates by CoCT (City of Cape Town).
“Though the rate-in-Rand decreased by around 1%, the City says nothing about the looming property rates increase which will be announced in March when the Draft Budget is published for public comment.
“Residents will also have a chance to have their say on the new rates calculation proposals.
“The increase from R285 000 to R435 000 for properties to be exempted from paying rates will result in: homes between R450K and R5 million will pay R147 less rates per month; homes over R5m will pay R147 more for rates per month,” said STOP CoCT founder, Sandra Dickson.
Dickson reminded residents, that the above amount “excludes the annual increase to property rates”.
The General Valuation Roll 2022 was now open for public inspection until April 30, electronically (email or e-services) or by March 31, at 30 inspection venues across the city.
The City said a new rates estimate calculator would be available on the City’s website from Monday, as a tool for property owners to see what their estimated rates could be from July 1, 2023.
STOP CoCT welcomed relief for pensioners, however, they appealed to the City to extend its technical assistance and streamline the red tape for a pensioner to qualify for rates relief.
Mitchells Plain resident and founder of the social media group “Electricity Tariffs Must Fall”, Natasha Selbourne Gertse, said according to the current estimation on her municipal bill, her house already went from R300 000 to R550 000.
“In July it’s going to be a huge difference for me, especially with my electricity bill because I will lose my lifeline benefits.
“I pay about R500 per month for electricity now, July it’s gonna be R1000 -R1500, for electricity.
“Automatically if they do the evaluation, the poorest are going to lose, paying more rates because their property value goes up and paying the higher domestic electricity tariff, which includes no free units,” she said.
Cape Times