POLOKWANE – There will only be an overall 6% increase in revenue derived from property rates taxes, according to mayor Freddy Greaver who on Tuesday tried to allay fears that property valuations would increase unreasonably.
He said there would not be ridiculous large-scale increases in property taxes as from July 1, as feared by some groups of people within the municipality.
“The overall rates increase on property rates will not exceed 6% or the R302 million budgeted for collection from property rates,” he said.
“The city cannot in any way contribute to its downfall, we need businesses to flourish as this contributes to solve unemployment too.
Every business closing means a lost opportunity to address problems such as unemployment.”
He also discouraged groups wanting to take the municipality to court regarding the valuation process, not to do so.
“It could be a catastrophe,” he said.
“We cannot afford to go that route. Let us try and find a way around the table to avoid it and solve the differences peacefully and amicably and avoid litigation. Let’s talk it through.”
He maintained that his belief was that the municipality had followed the property valuation process correctly, saying that there should not be animosity between the municipality and business regarding a “non-issue”.
A group comprising members from the farming community, property owners and developers and other individuals alleged the process followed by the municipality in terms of property valuation, was not done according to the Municipal Property Rates Act regulations.
The South African Property Owners Association is currently also investigating the matter. Greaver said the farming community’s fears of high increases were unfounded as some categories of farms would even be paying less in rates.
He explained that the valuation of properties was simply a list of the market values of properties.
The municipality, in accordance with its budget, decided how much revenue it was going to collect in terms of the policy and the budget, he said.
Overall the market value of properties in Polokwane grew from some R44,1 billion in 2009 to R50,6 billion, according to the new valuation roll.
The valuation roll would be available from April 7 for any input and/or objections, and people would have until May 30 to lodge objections, he said.
Regarding the valuation policy, he said it was due to be tabled and would be available on the municipal website and at libraries and rates halls for people to inspect and give input as from yesterday (Wednesday).
He further said there was a possibility that a special meeting would be arranged with property owners regarding proposed changes to the policy, and discussions could be held with a representative forum about the budget and policy.
Council would sit again at the end of May to accept it, after having considered the input given, he said.
