Residents and business entities drowning in municipal debt are encouraged to check if they qualify for a municipal debt write-off.
The debt write-off period ends on July 31 and applications are still open to those who meet the qualifying criteria. Depending on the income threshold, ratepayers could qualify for either a full write-off or a partial reduction in the amount owed. The qualifying criteria are as follows:
- Applicant must be the registered owner of the property.
- Only residential, small business, churches and non-profit organisation account holders may apply.
- Account holders’ balance must be in arrears for more than 90 days as at 31 December 2020.
- The combined gross income from both the residential account holder(s)/ applicant(s) and spouse(s) must be between R4 750 and R22 000 per month.
Where the monthly gross income from both the residential account holder(s)/ applicant(s) and spouse(s) is more than twenty-two thousand rand (R22 000), only a percentage of the debt above 90 days shall be written off on condition that the account holder(s) settle(s) that account in full. The scale to be used will be:
- Between R22 000 to R30 000 = 30% write-off of the debt above 90 days shall be offered; all interest and penalty charges shall be reversed
- Between R30 001 to R40 000 = 20% write-off of the debt above 90 days will be offered; all interest and penalty charges shall be reversed
- Between R40 001 to R50 000 = 10% write-off of the debt above 90 days will be offered; all interest and penalty charges shall be reversed
- Above R50 001 = all charges (e.g. disconnection fees) and interest charges shall be reversed
- The market value of the residential property or combined properties owned by the applicant must not exceed R1 500 000 based on the City’s Valuation Roll
All small businesses, places of worship and non-profit organisations will be required to provide the latest audited annual financial statements with turnover not exceeding R3 000 000 and six months’ bank statements at the date of submission of the application. Additionally, if the property is registered as mixed use with business and residential, the square metres of each business and residential will be used to determine the square meterage of each unit. The percentage of each unit will be multiplied by total City of Johannesburg evaluation of the property.
Applicants must provide a certified copy of the property owner’s identity document or proof of permanent residence, copy of latest municipal account, proof of income for the account holder and spouse, and certified bank statements for all accounts held by the account holder and spouse for a period of three months before date of application.
“Unfortunately, councillors cannot assist with the above, it has to be done directly with either the revenue centre at the Roodepoort City Hall or the civic centre on Christiaan de Wet Road. I am encouraging everyone who has an account that has a 90 days’ arrears to apply for the debt write-off. Please read the criteria and documentation requirements carefully and apply today,” advised Ward 71 coucillor, Rene Benjamin
Application forms can be submitted online at joburg.org.za, emailed to debtrehab@joburg.org.za or in person at any City Customer Service Centre.
