The Makhado Municipality is going to implement the controversial new valuation roll on 1 July this year.

The most recent valuation roll for the period 2014 to 2018 is dreaded by many in Makhado (Louis Trichardt) because of the outrageous valuations of many properties, in some cases four times the market value.

The municipality was asked whether possible corrections that needed to be made to the valuation roll would affect the implementation date and the answer was “no”. It seems as if the higher property rates based on the recent valuation roll will be bulldozed through. Higher rates, in all cases, based on a disproportionate valuation, in many cases, will result in a big chunk out of the already burdened ratepayer’s pocket.

The new tariff for property rates that will appear on the account is .0064 instead of the .0061 for the past financial year for a residential property. The first R23 440 of the value of every residential property will be discounted. This constitutes a 5% increase from the previous financial year’s discounted amount. Many ask why the value of properties should then be increased with 100% to 400%?

One home owner whose house is more than 30 years old had a shock when his house was valued for R3.6 million, while the selling price in the area is not more than R900 000. This owner will now have to fork out an annual R23 040 on rates (R3.6m multiplied by .0064) with a small discount of R150 for the year or R12.50 per month. His monthly payment on property rates will be R1 920 before the small discount. This home owner immediately filed his objection, one of the first of the 800 objections that streamed in. He had not been contacted by the municipality for a re-valuation.

The owner of a residential property valued for R1.3 milion, will pay about R680 every month after discount. That is, of course, besides the other increases on the monthly municipal account.

This could be bad news for home owners below Rissik Street, where many properties had been inaccurately valued in the R1 million to R1.5 million price bracket, and even up to R2.6 million. These and other discrepancies in the valuation roll had given rise to a public outcry. A professional valuer said that the roll as such made no sense and an experienced estate agent said that it was not a true reflection of the market value. The Soutpansberg Ratepayers Association attempted to discuss the “incorrect” valuation and flaws on the valuation roll as a whole at a municipal steering committee meeting, but they were silenced when they wanted to point out how unprofessional the valuation had been done.

“There is no challenge with the current valuation roll concerning its correctness and professional quality,” said the Makhado Municipality in a media statement dated 4 June.

“Many individual objections concerning plus minus 800 properties had been received by the municipality. What does that indicate to the municipality concerning the valuation roll as a whole?” was a question asked by the Zoutpansberger. The municipality answered that it showed that people had responded to their media article. “It is an indication that members of the public have responded to the article calling for objection which was advertised on 14 February in the print media ... The municipality appreciates the response by community members,” was the answer. The Municipal Property Rates Act’s section 50 was quoted, where clause 2 reads that an objection must be in relation to a specific individual property and not against the valuation roll as such and clause 6 states that “the lodging of an objection does not defer the liability for payment of rates beyond the date determined for payment”.

The tariff for property rates that will appear on the accounts of all industrial and commercial businesses will be .0097 and that for agricultural and rural area land .0016. A rebate of 45% will be deducted from the market value of qualifying senior citizens, 60 years or older, where his or her total income must not exceed R66 718 per year with the income and pension of the spouse included.