Draft valuation roll brings questions
A fair valuation roll should reflect the value of a property which a willing seller would realise on the open market if the property was sold to a willing buyer, in terms of the Local Government Municipal Properties Rating Act No 6 of 2004.
POLOKWANE – A fair valuation roll should reflect the value of a property which a willing seller would realise on the open market if the property was sold to a willing buyer, in terms of the Local Government Municipal Properties Rating Act No 6 of 2004.
However, judging from recent property sales figures in the city, the current draft valuation roll shows some discrepancies.
Transactions that have raised eyebrows include:
• A property in Oost Street is currently valued at R0.
The previous valuation was R850 000 and the property was sold for R950 000 in January.
• A property in Plein Street is currently valued at R540 000. The previous valuation was R750 000 and the property was sold for R850 000 in May.
• A property in Church Street is currently valued at R970 000.
The previous valuation was R1,19 million and the property was sold in October last year for R1,2 million.
• A property in Marshall Street is currently valued at R840 000.
The previous valuation was R1,05 million and the property was sold in October last year for R1,42 million.
• A property in Burger Street is currently valued at R200 000.
The previous valuation was R2,8 million and the property was sold in July last year for R1,7 million.
• A Devenish Street property is currently valued at R530 000.
The previous valuation was R3,5 million and the property was sold in April last year for R3,6 million.
• A property in Burger Street is currently valued at R1,6 million.
The previous valuation was R2,9 million and the property was sold in December last year for R3,8 million.
• A property in Compensatie Street is currently valued at R1,4 million.
The previous valuation was R6 million and the property was sold in August last year for R7 million.
• A property in Jorrison Street is currently valued at R18 million.
The previous valuation was R22 million and the property was sold in May last year for R28,4 million.
• A Biccard Street building is currently valued at R92 million.
The previous valuation was R85 million and the property was sold in August last year for R135,8 million.
The Polokwane draft valuation roll is open for inspection until June 23.
The municipality sent out notifications to property owners about the valuation of their properties and asked residents to inspect the valuation roll with the necessary diligence.
According to this notice, specific attention should be given to properties’ classification.
Ben Espach, director of Rates Watch, said when a property is under-valued, it cost the municipality in lost revenue and the municipality should lodge objections against these mistakes.
He said owners of properties that are under-valued, will not easily lodge objections, as they will pay less in tariffs.
Rates Watch is a professional team specialising in analysing all aspects of the Municipal Property Rates Act including valuations, rates and taxes, compliance with the Municipal Property Rates Act and lodging objections and appeals.
