STBB’S GUIDE ON MUNICIPAL PROPERTY VALUATIONS FOR HOMEOWNERS | PART 3 | SUPPLEMENTARY VALUATIONS ROLL
STBB’S GUIDE ON MUNICIPAL PROPERTY VALUATIONS FOR HOMEOWNERS
Supplementary Valuations Roll
Towns and cities are constantly growing resulting in many new developments. For this reason, municipal valuations are always changing. What does this mean? Well, every day new properties are being built on vacant erwens, properties are consolidated or subdivided or property owners are extending their houses. All of these impact municipal market value.
If a stand was vacant at the time of General Valuation, and a house has subsequently been built on the stand, the municipal valuation of the property will change and the rates of the stand will be calculated based on the new valuation attached to it. The problems is that municipalities do not publish a new valuation roll every time a property’s value changes. The General Valuation Roll (“GV”) assigns a value to all properties in a municipality with the objective of generating rates on an equitable basis. By law, municipalities need to review their GV at a certain time e.g.: the City of Cape Town needs to review its GV every three years. The problem with this is that three years is a long time to wait in order to get your property value updated. This is where Supplementary Valuation Rolls come into play.
What is a Supplementary Valuation Roll?
A Supplementary Valuation Roll serves as an update to the GV.
When is a Supplementary Valuation Roll published?
According to section 77 of the Municipal Property Rates Act No. 6 of 2004 (“MPRA”), a municipality must regularly (at least once a year) update its valuation roll by preparing a Supplementary Valuation Roll in terms of section 78 or to amend the valuation roll in terms of section 79, if applicable.
Does a Supplementary Valuation Roll contain all the properties located within a Municipality?
No, the Supplementary Valuation Roll will merely contain the properties that have been revalued after the GV was published. According to section 78(1) Municipal Rates Act 6 of 2004 (MPRA) a supplementary valuation must be made in respect of any rateable property:
• That was incorrectly omitted from the general valuation roll;
• That was included in the municipality after the last general valuation;
• That was subdivided or consolidated after the last general valuation;
• Whose market value has substantially increased or decreased for any reason;
• That was substantially incorrectly valued during the last general valuation; or
• That must be revalued for any other exceptional reason.
If a property is revalued in terms of any of the categories listed above, from what date will the new rates and taxes on the property be affective?
The new rates will have to be paid from the effective date of the Supplementary Valuation Roll.
In conclusion, we advise property owners to be vigilant when inspecting valuation rolls; both General Valuation Rolls and Supplementary Valuation Rolls. You also need to keep well informed of the rates policy that your Municipality adopts every year, as it affects the property you own and the monthly rates payment/s that you make.