Cape Town says 45 000 more home owners to share rates burden

About 45 000 properties have been added to Cape Town's ratepayer database since the 2006 valuations, therefore increases in valuations will not translate into corresponding increases in rates, says deputy mayor and Mayco member for finance Ian Neilson.

Although property values have increased by about 18 percent in the past three years and the overall rates income will swell by about 8 percent in the next financial year, he says, real increases in rates accounts will not lead to residents being taxed out of their homes.

"We have more properties, so the net increase for each will be less," Neilson said yesterday.

On Friday, Neilson told a press conference that the city had not yet begun setting rates. This process was entirely separate from the valuations.

"We know the value of a property does not necessarily indicate ability to pay," Neilson said, acknowledging there were people who were "asset-rich, but income-poor".

Property owners would learn what their new rates bills would be when the "rate in the rand" was set in May.

Because the two processes were separate, property owners who wanted to challenge their valuations had to do so before the April 30 deadline.

If they were dissatisfied with the outcome of their appeal, they could approach the provincial appeals board, Neilson said.

He warned owners they could not wait until after new rates had been determined to lodge objections.

Cape Argus

Posted at 10:09AM Feb 23, 2010 by Editor in Residential  |  Comments[1]