Ratepayers – do your calculations

Madam – Arising out of recent articles and letters appearing in your newspaper, I would like to offer property owners a hopefully simple explanation of the imposition of rates on properties in Newcastle.

1. The municipality causes to be prepared a valuation roll of all properties under its jurisdiction based on the market value thereof;

2. This roll is to be updated within prescribed periods;

3. The municipality decides each year what rate to impose on the valuation of properties;

4. The current rate for residential properties is 0.00975 and for business properties 0.02450. This means that for every R1 000 in value of residential property. you pay R9,75 per annum, and business properties R24,50 per annum;

5. If the municipality decides to INCREASE THE RATE and there has been NO NEW VALUATION of the properties, the amount payable will increase;

6. If the municipality decides NOT TO INCREASE THE RATE and the VALUATION OF THE PROPERTIES HAS INCREASED, then the amount payable will also increase;

7. If you object to the new valuation, the onus is on you to prove that it is incorrect. In my case I am satisfied that the new valuations of properties in which I have an interest are not more than the market value.

The effect of the recently published valuation roll based on a valuation as at 1 August 2013 and which takes effect on 1 July 2014, compared to the current roll based on a valuation as at 2 July 2008 is that rates on properties in which I have an interest will increase EVEN IF THE CURRENT RATE REMAINS THE SAME as illustrated hereunder:

I trust that councillors who are elected by us to look after our interests as ratepayers, will ensure that the rates for the year commencing 1 July 2014 are fixed at amounts which will result in a reasonable increase in rates payable in order for the municipality to fulfil its obligations to its residents.

IF THE RATE REMAINS THE SAME THEN I WILL BE PAYING AN AVERAGE OF 48.5% MORE RATES FROM 1 JULY 2014 AND WILL BE VERY UNHAPPY WITH MY WARD COUNCILLOR!!

Check your new value and do your calculation!

CONCERNED RATEPAYER