Applying for rebates

THE process of applying for a rebate varies from category to category so it is important to check out each section carefully and follow the steps outlined.

Some rebates are awarded automatically while you will have to apply for others.

Who qualifies for a rebate?

PENSIONERS
This is not an automatic rebate.

The City is sensitive to the needs of its senior citizens. Registered property owners who are pensioners may apply for a reduction of rates, subject to certain criteria. Pensioner's rebate application forms are available from any municipal Customer Service Centre.

Pensioner rebates remain valid for two years unless the property owner’s financial circumstances change, in which case the rebate will fall away or a new application must be made.

There are three categories of pensioners defined in the Rates Policy:

• Pensioners dependent on a national security grant – 100 percent rebate (subject to criteria);
• Pensioners whose gross monthly earnings are less than R5 000 a month – 100 percent rebate (subject to criteria);
• Pensioners whose gross monthly earnings are higher than R5 000 but less than R9 000 a month – 50 percent rebate (subject to criteria).

Pensioner criteria:

• You are the owner of the property in respect of which the rates are charged;
• You live on the property;
• You must be at least 60 years old;
• The total value of the property as per the General Valuation Roll, that is, the land plus the improvements, may not exceed R1 500 000.

For the newsletter on pensioner rebates, click here and to download the pensioner’s rebate application form, click here.

Documentation required:

• Your identity document;
• Proof of income for the previous tax year (SARS assessment); and
• Proof of current income.

HIGHER DENSITY
This is not an automatic rebate.

The City offers property owners and developers incentives for higher density residential buildings. Developers of higher density residential properties with 70 dwelling units or more per hectare qualify for an additional 20 percent rebate.

Sectional title owners living on these properties also qualify. They receive a 20 percent rebate for sectional title and a 20 percent rebate for the high density condition.

Other high density residential buildings not under sectional title also qualify, provided they are zoned for residential and density exceeds 70 units per hectare.

INNER CITY
This is not an automatic rebate.

To encourage mixed land uses and to make the inner city a vibrant place, there is a rates rebate on offer. A 40 percent rebate on rates is allowed where property has been re-developed to allow for 80 percent residential and 20 percent commercial use, in the inner city.

Urban Renewal Tax Incentive
This incentive comes in the form of an accelerated depreciation allowance in terms of the Income Tax Act.

• A newly constructed building or a part thereof receives deductions amounting to 20 percent of the investment in the first year, and 5 percent in each of the subsequent 16 years;
• For a refurbished building or part thereof, the deduction is a five-year straight line depreciation of 20 percent of the investment in each of the five-year periods, upon completion of the development.

For more information on the Urban Development Zone, which allows one to qualify for this tax incentive, click here.

Rates rebates for higher density and Inner City
To apply for these rates rebates send your application to:
Rates Policy Implementation
Rates and Taxes
PO Box 1450
Johannesburg
2000

Documentation required:

• Proof of approval of building plans; and
• Certificate of Occupancy.

SPORTS CLUBS
This is not an automatic rebate.

Sports clubs can also apply for rebates. Successful sports clubs are allowed a 40 percent rebate subject to the approval of the application by the City.

This application must be done in writing; application forms are available from:
Human development offices
14th Floor
Metropolitan Centre
158 Loveday Street
Braamfontein

The following criteria apply:

• The club cannot pay its rates;
• Membership is open to previously disadvantaged persons;
• The land owned by the club, other than that used for restaurant and bar facilities for club members, is utilised primarily for sporting activities; or
• The club is actively involved in sports development programmes for previously disadvantaged communities.

EDUCATIONAL
There is an automatic rebate for state-funded schools and universities.

All schools, both public and private, as well as tertiary education institutions, qualify for automatic rebates. Check that your property is correctly categorised in the Valuation Roll as educational in order to qualify for the different rates.

Independent schools and technicons should apply for the educational rebate.

• Primary and secondary public and independent schools qualify for a 50 percent rebate;
• Tertiary education facilities such as universities, technicons and colleges qualify for a 20 percent rebate; and
• Independent schools, previously exempted from assessment rates, have been given a four-year phasing in period of their rates. In the first year these schools will pay only 25 percent of their rebated rates, increasing by 25 percent in each subsequent year.

PUBLIC BENEFIT ORGANISATIONS
This is not an automatic rebate.

Public benefit organisations can qualify for a 100 percent rebate subject to an application to be submitted to the City.

Proof of registration in terms of section 30 of the Income Tax Act as a public benefit organisation is required.

Written applications are required, and must be made at:
Human development offices
14th floor
Metropolitan Centre
158 Loveday Street
Braamfontein

Applications can also be made at your nearest Customer Service Centre.

Return the application to the same office.

FARMING AND AGRICULTURE
This is not an automatic rebate.

If the property is zoned for farming or agriculture and the owner is taxed by the South African Revenue Services as a bona fide farmer, the entire property receives a 55 percent rebate, including the house and other facilities.

Many agricultural holdings in Johannesburg are actually used for residential or business purposes; such properties will be rated according to actual use.

Write to:
Rates Policy Implementation
Rates and Taxes
PO Box 1450
Johannesburg
2000

You can also send a fax to 011 381 9642 .

VACANT LAND
Vacant land may be rebated only under specific conditions: if you wish to develop your vacant plot and the development is or has been refused by the City because of a lack of infrastructure, you may apply for a 50 percent rebate.

RELIGIOUS BODIES
This is an automatic rebate. Religious properties are exempt from paying rates, provided that the property is owned by the religious institution and primarily used for religious purposes.