There’s some welcome news for bed and breakfasts and other accommodation facilities after the council approved a property rebate on the valuation roll which has caught property owners with their pants around their ankles after the new five-year valuation roll was adopted by the council on July 1.

The new valuations even have the local Chamber of Commerce and Industry in a tizzy, while the municipality says, “The implementation of a business tariff had created a hullabaloo between the authority and the business community and establishments.”

There are 144 properties within the municipality that have been categorised as accommodation, which were billed and categorised over the previous five-year cycle as residential.

The category has now been changed from residential to business to ensure the property rates reflect fair and equally, as prescribed by law.

Increases were not only limited to zoning changes, as market values also skyrocketed during the previous five-year valuation cycle.

To help B&Bs and other accommodation facilities weather the storm, the council has approved a 50% retrospective rebate as of July 1.

The municipality says it’s unfair to bill a single residential zoned property on the same calculations for properties allowed multiple buildings, and operating as businesses.

It comes after a disagreement between the municipality and the National Department of Cooperative Governance over the municipality’s ‘suggestion’ that it may revert guesthouses to residential categorisation.

Both conceded that the residential categorisation of B&Bs as residences ‘have disadvantaged other residential property owners’.

The council also resolved that no interest will be charged to the affected property owners concerning unpaid rates which have been billed.

Interest will, however, be charged on outstanding balances for other services.

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