Number 3
Friday September 26, 2008
In Durban, there is still tremendous confusion about what charges are
being levied for what. Here is an attempt to explain:
1. Your property has been given a market-related valuation.
2. Your rates are worked out as .009% of that valuation. Therefore
a R1 million property will pay rates of R9 000 per year, divided into
twelve months.
3. The first R120 000 of your property is rates-free, so you must
calculate your rates on the remainder. This is also true of pensioners'
rebates and other concessions.
4. Sewage and refuse are worked out as a percentage of your rates -
20% and 11% respectively. So, if your rates are R800 per month, 20% of
that is your sewage and 11% of that is your refuse removal.
However, this is where problems are creeping in. Many properties in
Durban do not have city sewage. The situation has arisen, therefore,
that even though the sewage is not individually charged, it is still
included in your rates. So, even people who do not have sewage are
being charged for it. People who have these green Wheelie Bin contracts
with the city are also still being charged for refuse removal as this is
part of their rates. A resident of Durban has asked the municipality
for an explanation as to how these charges can attract VAT, as it is
illegal to charge VAT on a tax. We are still waiting for a satisfactory
response from the city.
These are just some of the anomalies that are arising because of the new
rates policy. Anyone with other examples of problems with this new
billing system are asked to contact us. The Combined Ratepayers
Association (CRA) is gathering evidence about all these shortcomings in
order to call for a rethink of this legislation.
The CRA is still waiting for a response from the Mayor and the Speaker
as a result of last week's meeting - this will be followed up soon.
Lilian Develing of the Hillcrest Ratepayers Association has been going
through the evaluation roll and has turned up many discrepancies that
were brought to the council's attention up to four years ago. They have
still not been corrected. The same company that did Durban's valuations
were also responsible for doing the valuations for Nelson Mandela Bay
Metro (Port Elizabeth) and a recent newspaper report from the Eastern
Cape identified the process as being 'chaotic'. It appears that PE,
along with other towns that had their valuations done by the same
company, are experiencing the same problems as Durban.
With regard to the evaluations process, here is what you can do:
1. If you do not agree with the valuation, lodge an objection.
2. If the objection is overruled, you must ask in writing for an
explanation as to why the objection was overruled.
3. Once you have received the reason in writing, you can lodge an
appeal. You have thirty days to do so.
4. Regardless of where you are in the above process, it is
recommended that you call a formal dispute with the municipality over
your bill. This will prevent the municipality from taking any action
against you if you do not pay your full account.
For more information on your rights and responsibilities as a ratepayer,
go to the CRA website www.cra-durban.co.za
<http://www.cra-durban.co.za/>
PS - Residents who are dissatisfied with municipal service are also
urged to cancel their subscription to MetroBeat.
Any ratepayers association from anywhere in South Africa is also
encouraged to send their ratepayers' news to the writer of this
newsletter, so that it can be gathered into the weekly bulletin.
What's happening across South Africa:
National Ratepayers and Taxpayers news:
There is growing resistance all over South Africa to municipal
mismanagement, and there is growing conviction that withholding rates
and taxes is the only option left to compel municipalities to improve
their service delivery and accountability to the public. There have
been several success stories in this regard, the most recent being Mooi
River. The number of towns declaring disputes against their management
is growing, with three more having joined in this week (East London,
Kareedouw and Frankfort).
Many towns across South Africa have declared disputes with their local
municipalities and are withholding rates, with varying degrees of
success. However, until recently several Constitutional experts were
quoted as saying that withholding rates is illegal. This has now
changed, as these experts now claim that their remarks have been
mis-interpreted. There are indeed grounds for the withholding of rates.
Rates can be redirected in the case of an 'emergency'. What constitutes
an emergency, no-one yet knows. The major point with all these legal
experts, is that the new municipal laws have been insufficiently tested
and therefore are still open to interpretation. Despite almost fifty
towns being in dispute across South Africa, and many of them withholding
rates completely, not one action by any municipality against these
disputers has been successful.
Bethlehem: an internal auditor in the Bethlehem Municipality recently
wrote a letter to the council, in which he stated that the town's
finances were in such disarray that 'God has forsaken this place'. This
is being used as a reason why the Bethlehem community are about to
declare a dispute with their municipality, citing the complete breakdown
of services in the town as a reason.
There are many other issues of relevance to ratepayers across South
Africa, and we will attempt to keep you informed on a weekly basis.
Please forward this mail to anyone who might be interested in this news.
If you want back-copies of this bulletin, please contact the writer at
nikimoore@webstorm.co.za
Posts
No comments:
Post a Comment