General Valuation Roll (GV 2022)
CITY OF CAPE TOWN
21 FEBRUARY 2023
Cape Town rates rebate proposals aim to help lower and middle income ratepayers
The City of Cape Town Mayoral Committee (Mayco) has greenlit proposed increased rates relief for middle and lower income ratepayers, with a rates reduction of R435,000 for all residential properties valued at R5 million and under. This is a significant increase in the rebate from the current R285 000, representing a 52% increase in rebate. This is in addition to the statutory R15 000 exemption for all properties, which means the first R450 000 of those residential properties’ values will be exempt from paying rates. Mayco further passed a proposal to help more pensioners and social grant recipients benefit from rates rebates, by raising the upper qualifying limit from R17 500 to R22 000 total monthly household income, with effect from 1 July 2023. These relief measures form part of a package of General Valuation policy proposals to serve at City Council this Friday, 24 February 2023. Final proposals would be reflected in the City’s 2023/24 Budget which will be tabled to Council in March for public participation. Read more below:
‘We are increasing the rates exemption for all properties under R5 million. 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. We are also enabling more pensioners and social grant recipients to benefit from rates rebate by raising the qualifying limit from R17 500 to R22 000 household income per month. We are making 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 Cape Town Mayor Geordin Hill-Lewis.
The General Valuation Roll 2022 (GV2022) is now open for public inspection until 30 April 2023 electronically (email or e-services) or by 31 March 2023 at 30 inspection venues across the city. A new rates estimate calculator will also be available on the City’s website from 27 February 2023, which will provide an easy tool for property owners to see what their estimated rates could be from 1 July 2023.
The City is encouraging ratepayers to use the City’s website to view their property information, including the valuation notice, pre-populated objection form, link to e-services and the provisional rates calculator. If they choose to lodge objections, the preferred option is to do so via the e-services link or by returning the pre-populated objection form by email. The e-servicesportal is safe, convenient and user-friendly. Online objections are automatically recorded on the valuation system without the need for data-capturing by City staff.
‘One of the pledges of our administration is to do the basics better through technology and innovation. For this valuation, we’ve built a rates estimate calculator on the City’s website to make life easier for property owners. With an easy click, property owners will be able to see what their estimated rates could be from 1 July 2023.
‘With previous GVs, the proposed rate-in-the-Rand was normally only tabled at the March Council meeting, after the inspection period had ended. This left property owners guessing the rates liability of their new property valuations. For GV2022, we are asking Council to pass provisional rate-in-the-Rand and relief measures on 24 February 2023. This will enable property owners to determine the likely impact on their rates bill using the rates estimate calculator which will be live from 27 February 2023,’ said Mayor Hill-Lewis.
The City’s general valuation process is one of the most-trusted City services according to past customer satisfaction surveys. GV2022 was quality assured by the International Property Tax Institute. While many municipalities outsource the valuation function, Cape Town is one of very few performing the full cycle of valuation-related services internally, with sought after valuers and professional staff.
‘We thank our valuation team and all officials for their hard work to ensure that the GV again stands out as professional, accurate, and based on integrity. We thank our ratepayers for their support, which is unparalleled in South Africa, given Cape Town’s 97%-plus revenue collection ratio. The trust that Capetonians place in the City enables us to strive towards being a beacon of hope for South Africa,’ said Mayor Hill-Lewis.
Rates used for shared services
‘Rates are used for shared services such as fire services, libraries, recreational areas, parks and clinics. Every year, the City calculates what income is required for shared services, as set out in the Integrated Development Plan. The valuation of a property determines how much each property owner contributes to the required amount. For instance, in the 2023/24 financial year, the required rates amount to pay for the shared services will be approximately R11,8 billion. This forms part of the City Budget for 2023/24 which will be tabled in Council at the end of March 2023 and thereafter opened for public comment.
‘As a well-run metro, we ensure that the money is used as earmarked. We have received unqualified audits since 2006 and, comparatively, Cape Town’s average rates are very competitive and among the lowest in the country. Our ratepayers and residents also receive some of the top services in the country.
‘As always, we encourage residents who qualify to apply to the City for the R4,7 billion in rates and services relief on offer,’ said the City’s Mayoral Committee Member for Finance, Councillor Siseko Mbandezi.
Legislation requires metropolitan municipalities to undertake a GV at least every four years.
The GV determines what contributions property owners make to the rates account. Rates are used for services shared by all Capetonions, such as fire services, libraries, recreational areas and clinics.
Property valuations are determined by professional registered valuers based on the market value of properties at a certain date.
For GV2022, the valuation date is 1 July 2022. The accurate and fair market value is in most cases determined in terms of comparable sales information around the valuation date.
The GV 2022 was certified by the City’s Municipal Valuer on 31 January 2023.
GV2022 was quality assured by the International Property Tax Institute.
For more info: www.capetown.gov.za/propertyvaluations
GV 2022 in a nutshell
NEW! Rates estimate calculator available in the GVRoll for each property owner from 27 February. Roll is live on the City’s website from 21 February 2023.
Find the Roll at: www.capetown.gov.za/propertyvaluations or see it in the trending box on the City’s website landing page.
909 000 rateable properties.
R1,7 trillion total property value.
Rates bill requiring some R11,8 bn to pay for shared services of all Capetonians.
80 venue staff that will serve ratepayers at 30 city-wide inspection venues.
Ratepayers may submit objections at their closest inspection venue between 21 February 2023 and not later than 31 March 2023. E-services or e-mailed objections can be submitted up to 30 April 2023. The GV2022 Roll will be open for double the prescribed 30-day requirement to give property owners sufficient time to inspect the roll and to submit objections on the market value, where they feel it is warranted.
GV2022 focused on buffering middle, and lower income valued property as far as possible without jeopardising service delivery.
For rates relief: https://bit.ly/CCT-RatesRelief
Issued by: Media Office, City of Cape Town
Media enquiries: Councillor Siseko Mbandezi, Mayoral Committee Member for Finance, City of Cape Town, Tel: 021 444 0958 or Cell: 076 278 1257, Email: firstname.lastname@example.org (please always copy email@example.com)