GEORGE NEWS - The George Municipality has opened the General Valuation Roll for inspection until 31 March. Professional valuer Quintus Neethling of the newly established George Ratepayers Association has supplied George Herald with a few pointers regarding the valuation of your property, and the objection process.

Market value

The valuation roll is based on the market value of properties, as defined in section 46 of the Municipal Property Rates Act 6 of 2004. Market value is defined as laid down by the International Valuation Standards Committee: "The estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arms-length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion."

The act requires municipalities to conduct general property valuations every four years to ensure that their property valuation rolls are up to date.

According to the act, any person may inspect the roll during office hours and can lodge an objection with the municipal manager against any matter reflected in the roll. However, an objection must be in relation to a specific individual property and not against the valuation roll as such. 

If a property owner is unable to read or write, the municipal manager must assist them in lodging their objection.

Objections

If a property owner objects to their property valuation, they must fill in an objection form and submit it to the municipal valuer before the deadline. (The valuation can be found on the municipality's website, www.george.gov.za.) 

The municipality will require as much information as possible from the property owner, including a market valuation report of their property from a registered professional valuer. Property owners can obtain the necessary application forms from the George Municipality's office or on the municipality's web/site.

Higher rates?

Property owners have asked whether an increase in the valuation of their property will result in higher rates. The answer is, not necessarily, as municipalities adjust the tariff rate (cent per rand) to compensate for the general increase in property values. 

The net effect of the general valuation on property rates will, however, differ from property to property. The rates factor that the municipality will use to calculate rates and taxes will be adjusted.

For example, the municipality currently uses the rates factor of 0,008219 for residential properties. If the market value of your property is R2 400 000 x 0,008219 = R19 725,60 per annum/12 = R1 643,80 per month.

Professional valuer

When objecting, opt for a registered professional valuer registered with the South African Council of Property Valuers Profession or known as the SACPVP, as they have the necessary skill, qualifications and expertise to assist property owners with a possible successful objection. 

Estate agents can also help with the objection process but cannot perform valuations, as they do not hold the necessary registration or qualifications for an appeal to succeed once it reaches the appeals board for consideration.

Valuation Appeal Board

The municipality will investigate objections and post the results to objectors. If the value is adjusted by more than 10% following an objection, the matter will be referred to the municipal manager for submission to the Valuation Appeal Board. The board's decisions are final and beyond the control of the municipality. It also has a right to charge people for frivolous appeal or appeals lodged in bad faith.

Remember to continue to pay your rates account even if you have objected against the market value of your property. If you have a successful objection the municipality will rectify your account.

The George Ratepayers Association encourages property owners to inspect the General Valuation Roll and to lodge any objections before the deadline to ensure a fair and accurate valuation of their properties.

No objections will be accepted or considered after the 31 March cut-off date. Let us assist the municipality to the extent we can during the objection period.

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