|The eThekwini (Durban) Municipality has called for tenders for a general valuation of all properties within the municipal area, according to a September 25 issued press release by the local authority.|
This valuation is required in terms of the Municipal Property Rates Act No. 6 of 2004, which came into effect on 2 July 2005 and replaces the Local Authorities Ordinance No. 25 of 1974.
Currently, in terms of the Ordinance, properties are valued at the market value of the land plus the depreciated replacement cost of any buildings and the current valuations refer to a fixed valuation date of 1 January 1998.
“As this method of valuation,” according to the press release, “does not take into account sales of developed property and, consequently the effects of supply and demand, it bears little relationship to market value and what properties actually change hands for in the market place.
The new Act requires that all properties be valued at market value and this should result in a more equitable and, definitely, a more understandable system, which will be to the benefit of all ratepayers
One of the requirements of the Act is that Sectional Title units now have to be separately valued and rated. Including the sectional title units, there are in excess of half a million properties to be valued, and the whole process is scheduled for completion by the end of December 2007. The valuation date to which the general valuation will be indexed will be the 1 July 2007 and implementation of the new valuation roll for rating purposes will take effect on 1 July 2008.