KwaDukuza property rates – rules of engagement

The perception that KwaDukuza property and service rates are higher than those of some city metros is not entirely true.

The numbers tell us that eThekwini, Nelson Mandela Bay and Tshwane top the list, while KwaDukuza does have similar rates to the City of Johannesburg, while Cape Town comes in lower.

In essence, no municipality has the exact same budgetary requirements and determines rates according to different factors.

KwaDukuza municipality spokesperson Sipho Mkhize said property rates, like elsewhere, are calculated according to the value of land, buildings and improvements made to buildings.

“This value is determined by the market value of your property, essentially the price you would get for the property in the open market.”

Location, whether it is situated in an affluent or middle class area and the size of a property all play a role.

Other influences include the overall state of the local property market, economic conditions and municipal budgetary considerations.

A municipality uses these factors to calculate a cent amount per rand rate according to a property’s value.

Property rates increase over time as property values increase and municipalities seek to generate sufficient revenue to fund infrastructure and services.

Property owners in more developed and urban areas can expect to pay higher rates where the demand for services is higher, and the cost of providing those services is more.

In contrast, property rates in rural areas or less developed municipalities are likely to be less expensive where the demand for services is lower.

KwaDukuza’s rates (cents per rand) for each property category for the financial year July 2022 to June 2023, calculated per annum:

• Residential property: 0.865 cents (based on market value).
•Residential properties used for commercial purposes: 2.676 cents.
• Business and commercial property: 2.676 cents.
• Vacant land: 2.676 cents.
• Properties used for religious worship: 0.000 cents.
• Industrial property: 2.676 cents.
• Agricultural property: 0.217 cents (for a ratio of 1:0.25).
• Mining property: 2.549 cents.
• Public service infrastructure property: 0.217 cents (for a ratio of 1:0.25).
• Public benefit organisation property: 0.000 cents
• Public service properties: 2.676 cents.
• Unauthorised or illegal development or use and abandoned property or building: 5.000 cents.

For example, if you own a residential property with a market value of R1 000 000, your rates will be calculated as follows:

Rate ratio: 1:1 (for residential property).
Rate: 0.865 cents in the rand.
Calculation: (0.865/100) x R1 000 000 = R8 650 per year.

Homes of the same value in other parts of the country would amount to:

R11 837 (eThekwini municipality), R11 444 (Nelson Mandela Bay municipality), R11 070 (City of Tshwane), R8 619 (City of Johannesburg) and R6 344 (City of Cape Town).

As indicated above, some properties may be exempted from paying rates based on certain criteria, such as being owned by registered indigent beneficiaries, being used for religious worship or belonging to public benefit organisations.

Rebates and reductions for certain owner categories may also apply, such as pensioners, disability grantees, child-headed households and agricultural properties.

Note that a potential property rates increase of 7% looms for KwaDukuza, as proposed in the municipal draft budget for the 2023/24 financial year.

Residents have until the end of April to submit their comments on the budget. Visit the KwaDukuza municipality’s Facebook page to see when your ward will be visited.

Residents of wards 6, 22 and 30, which covers the majority of Ballito, can attend the budget roadshow meeting at Umhlali Prep at 6pm on April 20.

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