Understanding Theewaterskloof General Valuation 2022 Process

Theewaterskloof General Valuation 2022 August 2022

POINTS OF DISCUSSION Legislative requirements Data verification process Valuation methodology Objection process Appeal process Q & A

Legislative requirements Governed by Local Government Municipal Property Rates Act, 6 of 2004 (MPRA) Sec 8 rating categories Sec 9 multi purpose Sec 17 Impermissible rates Sec 45(2) Physical inspection optional, can use analytical and other systems, aerial photography

Legislative requirements Sec 46 Basis of valuation: Market value willing buyer/willing seller principle Sec 49 Public notice of valuation rolls Sec 50 Inspection and objections Sec 54 Right to appeal Sec 78 Supplementary valuation process

Data verification process Data collectors will visit properties to verify property information and use Properties will be photographed from exterior for record purposes Data collectors will be identifiable and carry ID cards Data verification period: August - September

Valuation Methodology Residential/Vacant land/Sectional Title Comparable sales method: Use registered sales as basis of valuation Commercial/Industrial Income capitalisation method. Determine market rentals, vacancy, expenses, capitalisation rates. Apply to net rentable areas.

Valuation Methodology Schools, Churches, Halls etc Depreciated replacement cost. Determine various building cost and vacant land rates. Apply to extent of land and buildings. Allow for depreciation on buildings.

Valuation Methodology Specialised properties Hotels - Income based on room rates, occupancy and other factors Service stations Based on fuel sales and rental income of workshops/shops etc Renewable energy Based on rental for leased portion and agricultural methodology for remainder of farm. Agricultural properties- Comparable sales and depreciated replacement cost. Determine various land types and apply rate per hectare. Apply cost to structures, allow for depreciation on buildings

Objection process Sec 50 of MPRA Objection period gazetted and advertised Objection must be against individual property and not the valuation roll as such Object to roll entries on a property and not affordability/percentage increase/rebates Provide motivation (sales & market evidence) and photos to support your suggested values

Objection process Sec 51 - Municipal valuer must consider objections promptly Sec 52 Any objection outcome amended by more than 10%, is subject to review by the Valuation Appeal Board Sec 53 Municipal valuer must notify each objector of outcome and state whether outcome is subject to Sec 52 review process

Objection process Sec 53 - Reasons can be requested within 30 days of receipt of objection outcome notice. A prescribed fee will be applicable. Municipal Valuer has 30 days to respond.

Appeal process Sec 54 - Right to appeal. An appeal must be lodged within 30 days after date of objection outcome notice Or within 21 days of receiving written reasons Matter will then be finalised by Valuation Appeal Board after hearing of evidence by both parties

Q & A

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