On the 27th of May 2022, the City of Johannesburg (CoJ) approved the Rates Policy and the rates tariffs for the 2022/23 financial year. The CoJ Rates Policy and the rate tariffs for the 2022/23 financial year were aligned to section 8 of the Municipal Property Rates Act (MPRA) as amended.
Section 8 has mandatory categories to be implemented by all municipalities who were given seven years to implement same from 1 July 2015. The changes could not be implemented in the middle of the implemented General Valuation 2013, and a decision was taken to approach the Minister for CoGTA to consider that the subcategories be included from the amended Section 8 of the MPRA. The application request was not considered favorably.
The implementation of Section 8 was communicated to the public at large via the 2021/22 and 2022/2023 Rates Policy public participation process. The policy that was approved for 2021/22 had an addendum section that referred to the implementation of Section 8.
The following property categories appeared in the last financial year:
• Agricultural business
• Agricultural residential
• Agricultural other
• Business and Commercial
• Education
• Farming
• Mining land
• Multipurpose property
• Municipal property
• Private open space
• Public open space
• Public service infrastructure
• Public service infrastructure privately owned
• Public benefit organisation
• Religious
• Remainder of a township
• Residential
• Residential consent use
• Sectional title residential
• Sectional title other
• State
• Vacant land
Below is the list of mandatory property categories as per the amended Section 8(2) that will be implemented on 1 July 2022:
• Residential
• Industrial
• Business and commercial
• Agricultural
• Mining
• Public service purpose
• Public service infrastructure
• Public service organisation
• Multipurpose
• Vacant land
The ‘Education’ category does not form part of the mandatory categories. The amended Section 8 created the category ‘Public Service Purpose’ under which public schools would belong. The category public service purpose is defined as follows:
“Public service purposes” in relation to the use of a property, means property owned and used by an organ of state as-
a) Hospital and clinics;
b) Schools, pre-schools, early childhood development centres or further education and training colleges;
c) National and provincial libraries and archives;
d) Police Stations;
e) Correctional Facilities;
f) Courts of Law
but excludes property contemplated in the definition of ‘public service infrastructure’.
All privately owned schools, pre-schools, early childhood development centres or further education and training colleges, and universities is aligned to the category of business and commercial. These institutions may qualify for a rebate as outlined in the approved Rates Policy if all requirements are met. The approved rebate will be effective from the date of application.
Educational institutions can apply for the rebate by completing an application form that will be available from the 5th of July 2022 on the City's website www.joburg.org.za. Alternatively, it can be requested via email: ratescomments@joburg.org.za or collected from any Walk-in centre.
For further clarity on how the application process works, kindly send your questions to ratescomments@joburg.org.za
Education rebate application forms must be submitted to the nearest walk-in centre and applicants must ensure that they obtain a reference number.
ENDS
Issued by the MMC Finance, Cllr Julie Suddaby
For more information, or an interview with MMC Suddaby, please contact:
Michelle Ashburner
Deputy Director: Communications and Stakeholder Management
MichelleA@joburg.org.za | 071 222 0977
04/07/2022
