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City opens discussion about General Valuation Roll 2018: What you need to know The time has come again for the City of Johannesburg to update the value of a record 879 005 properties across Johannesburg The time has come again for the City of Johannesburg to update the value of a record 879 005 properties across Johannesburg. This General Valuation Roll happens every four years, but can be extended to five years, as was the case in the City of Johannesburg, with permission from the MEC of local government. Its last Valuation Roll was in 2013. All properties within the boundaries of the City of Johannesburg are valued during the compilation of the new Valuation Roll. All rateable properties must be valued during a general valuation and new values will reflect on residents’ accounts from 1 July 2018. This also means property owners may expect to pay more for their property rates from 1 July 2018. Once a property is valued for purposes of the Valuation Roll 2018, the monthly rates and taxes charges will be affected, due to a change in the market value or category of a specific property.

The City’s current Valuation Roll was implemented on 1 July 2013, and the last date of valuation was 2 July 2012. The City of Johannesburg was granted a 12-month extension to implement the next Valuation Roll. The 2013 Valuation Roll will end on 30 June 2018, making way for the next Valuation Roll on 1 July 2018. The process has already started and the City utilised relevant property and market information as at 1 July 2017.

Record property growth

How properties are valued

The five-year property growth rate in the City shows just over 12 000 new properties have been registered per year for the last five years. Group Finance spokesperson, Kgamanyane Maphologela, previously said that out of the total recorded properties on the City’s current General Valuation Roll, the bulk of these properties are residential properties representing about 87%, followed by both commercial and other categories at 5% and vacant land at 3%

The City can physically inspect properties. But this mostly happens in cases where aerial photography and other imagery is not useable, such as when properties have a lot of foliage or high walls.

“The steady growth in new properties affords the City an opportunity to increase its revenue stream from property rates, as the City would have more properties it levies rates and taxes. This would, in turn, ensure that the City can deliver improved services such as better clinics, libraries, parks and recreational facilities, a cleaner City and municipal roads amongst others,” said Kgamanyane.

Valuers use building plans, oblique imagery and state of the art 3D aerial photography that shows the properties from all angles, as per Section 45 of the MPRA.

Supplementary valuation

vs Municipal vs estate agent market value The date of valuation, 1 July 2017, is the date the market value of your property will be determined, and it will remain the same until the next general valuation roll comes into effect. Unless there were changes made to the property after that date that may influence the market value, it remains the same. Estate agents determine the value of a property in the current market which might differ significantly from the market as at the previous date of valuation. Before the next general valuation roll comes into effect, properties are still valued as at 1 July 2012.

A computer aided mass appraisal (Cama) system is used for this valuation.

For non-residential properties, field visits are undertaken to obtain data such as the property use, rentals and relevant market related information.

The basis of the valuation is the market value of the property, as per Section 46 of the Municipal Property Rates Act 6 of 2004 as amended (MPRA). The market value is the amount the property would have realised if sold on the date of valuation in the open market by a willing seller to a willing buyer. The Valuation Roll 2018 will be open for inspection and objections from 20 February until 6 April 2018 at 12 regional centres citywide. The City’s Valuation, Rates and Taxes teams will continue to engage with property owners on this process as July nears.

Property market value When valuing properties, the municipal valuer establishes the market conditions, as at the date of valuation. This is based on recent sales and market information activity in the various areas. Therefore, this will take into consideration areas where values have declined, increased or remained stagnant due to the current state of the economy. Different valuation methodologies are used to value the different types of properties.

A supplementary valuation is done to update the general valuation roll. Supplementary valuations are performed during each financial year, according to the market conditions that applied as at the date of the valuation, as per Section 77 and 78 of the MPRA. When new properties are registered or developed (built) after 1 July 2017, the City will conduct supplementary valuations to reflect the changes.

How and when can I view the value of my property and lodge an objection if I need to The General Valuation Roll 2018 is for the period 1 July 2018 to 30 June 2022 and will be open for public inspection effectively from 20 February 2018 to 6 April 2018. Ratepayers have 45 days, from the first date of publication of the roll, to inspect the General Valuation Roll and lodge objections, if necessary, even though the prescribed minimum legislated objection period is only 30 days. There will be 12 venues citywide where property owners may inspect the Valuation Roll. Property owners will be formally notified of these public inspection venues across the city by post. These venues may also be viewed on the City’s website, However, the City is a caring City and always put the needs of their customers first and therefore, the Valuation Roll will be available on the City’s website for viewing from 20 February to 6 April 2018 and for the first time an online objection functionality will be made available on the City’s website during the inspection/objection period. No objection via email or facsimile (fax), however, will be accepted. Late objections will also not be accepted since the process is legislated. The City will send out valuation notices, known as Section 49 notices, from January 2018 as prescribed by the Municipal Property Rates Act 6 of 2004, as amended (MPRA). A Section 49 notice is a notice sent to property owners informing them of the market value and category, amongst others, that will be reflected in the General Valuation Roll 2018 as at 1 July 2017. Property owners are advised to check whether they agree with the new entry, including the market value, during the objection period and if not, submit their objection as soon as possible. If you are satisfied that this value on the notice of the General Valuation Roll 2018 represents the market value of your property as at 1 July 2017, you need not take any action. Should you feel that your property has been over or under valued, you may lodge an objection. If the City finds your market value to be incorrect, it will adjust the market value and you will be notified of the outcome. If the City finds that the value is correct as reflected in the General Valuation Roll, you will be notified of the outcome and have the opportunity to lodge an Appeal as per Section 54 of the MPRA.

On 30 January 2018, the Valuation Roll 2018 was submitted to the municipal manager. The public inspection and objection period will be from 20 February to 6 April 2018.

It has to be remembered that it is up to the objector to prove that the valuation is incorrect, and must provide all the necessary documentation with the objection form which can be downloaded from the City’s website. If you are not satisfied with the outcome of your objection, you can lodge an appeal within 30 days of receiving the outcome letter of objection/s. The Valuation Appeal Board is an independent body appointed by the MEC for Local Government under section 56 of the Municipal Property Rates Act. Board consists of a legal representative (Advocate) and two professional valuers, registered at the SA Council for Professional Valuers. The Appeal Board will review and either confirm, amend or revoke the decision of the Municipal Valuer.

Remember, the Valuation Roll 2018 will also be available on the City’s website for viewing from 20 February to 6 April 2018. This is an easy, userfriendly option and the City urges its customers to make use of this option for their convenience.