Update

GEORGE NEWS - Property rates in George will not rise proportionally to the steep increases in municipal valuations on the 2023 valuation roll, according to George Municipality's chief financial officer, Riaan du Plessis.

The average increase in valuations on the roll is 67,44%. Du Plessis responded to a flurry of fears among property owners following abnormally steep increases in valuations. 

The unusual growth in property values in George over the four years since the previous municipal valuation can be attributed to the unprecedented influx of new residents. 

George Herald last week reported about a ratepayer whose one property increased by 85% in value. Ratepayers are naturally anxious about what annual rate increase to expect in July.

The newly established George Ratepayers Association (GRPA) has asked for an extension of the deadline for objections to the valuations from 31 March to 14 April. The roll was opened for public inspection on 9 February.

In a letter to George Municipality dated 24 March, GRPA vice-chairman Johan Steyn writes that only 1% (500) of ratepayers has so far objected to the valuation of their properties, with just four (working) days left to the cut-off date. 

He attributes this low percentage to many older ratepayers being reliant on postal and not electronic communication. Some GRPA members have indicated that they only received notification in their post boxes early last week. 

This leaves far too short a period for properly investigating their property's valuation and preparing an objection. Steyn says the municipality's communication regarding the valuations has not been user friendly and the "voluminous extent thereof has contributed to substantial confusion". 

Many ratepayers still do not understand the process or how the new valuations will impact their property rates.

Transparency

On the GRPA chat group, that has been abuzz with comments on the topic, a concerned ratepayer said the municipality has not been transparent about the way it came to the values and it should demonstrate that it has taken every other precaution to minimise rate increases and that increases are not used to cover or make up for other losses.

Du Plessis responded that the new property values were determined by appointed professional valuers in terms of the Municipal Property Rates Act who followed a formal process to determine the market-related value of each property.

ALSO READ: Rebates in property rates

He said the public inspection period will not be extended. "If any property owner feels that the valuation of their property is incorrect, they are advised to follow the prescribed objection process. Our finance staff will assist them with this process. All objections are evaluated and any resultant adjustments will be effected by means of supplementary valuation rolls."

George Municipality's chief financial officer, Riaan du Plessis

Determination of new rates

Du Plessis said the new property rates tax has to be determined "in a neutral manner before any increases or decreases in the rate to be levied can be determined". 

"Based on the overall increase in market values, the municipality has to consider the rate in the rand tax to be levied on residential and agricultural properties. The general valuation roll in the greater George area indicates a total of 55 230 properties with a combined market value of R73 495 100 925, an increase of an average of 67,44%."

He gave the assurance that the property rate tariff will not increase by the same percentage, as a new cent in the rand tariff will be calculated.

"Generally, the fear is that the municipality would keep the rate in the rand constant, thus increasing the property tax to be paid by owners in direct correlation with the increase in the market value valuation. This is an incorrect assumption, and will not be allowed by the National Treasury or the Department of Cooperative Governance, both of which oversee the new general valuation roll process," said Du Plessis.

He said the municipality is currently proposing a significant reduction in the rate in the rand for residential and agricultural properties. This proposal will serve before Council on 30 March for their consideration.

Previous article: Property valuations are rising sharply

‘We bring you the latest Garden Route, Hessequa, Karoo news’