So how much are taxpayers going to have to pay when the Makhado Municipality introduces their new property rates policy?

This is surely the question on everybody’s mind. Some believe it is not going to be as bad, while others fear property rates will skyrocket making it impossible for an average person to afford an own home.

So what is the answer to the question?

The answer at this stage seems to be that there is no answer, which is not helping much.

According to the municipality’s acting Director of Finance, Mr Thomas Nephawe, the final percentage, according to which the new rates and taxes will be calculated, will only be known to them and everyone else once the whole evaluation process in the municipal area has been completed. This process has already started.

The biggest change regarding the new valuation role is that, where in the past, rates and taxes were only levied on the land value, rates and taxes will now be levied on the property as a whole, which includes all improvements on the property.

At present, the percentage property tax that has to be paid in Makhado is 0,092 cents to the rand on land value only with a total amount of rateable land/property in the region R18 million. With the municipality’s new property rates policy, this amount will increase significantly.

As to why a new policy is needed, Nephawe had much to say. "Currently a wealthy person and a poor person are charged at the same rate which is unfair in accordance with the Municipal Property Rates Act," Nephawe explained. In short, it means that in future a person living in a double-storey house will pay more rates and taxes than a person staying in a single-storey home. But, according to Nephawe, it’s not all doom and gloom. He said that although there is no specific number on the table yet, the new rate will be fewer cents to the rand than at present. Taxpayers will also not pay tax on the first R15 000 of the total value of their property.

As for the process of establishing the new evaluation role, Nephawe said they are still on track. Once completed, the new policy will be tabled as part of the annual budget and (according to the Municipal Finance Management Act Nr 56 of 2003) the municipality has to consider the views and inputs from the local community and National Treasury. If needed, the policy can be revised.

Nephawe said the new property rate policy will be implemented in both Makhado and the former 293 townships by July next year, but not in the villages. Asked why not in the villages, Nephawe said they will not have finished evaluating the estimated 300 villages with 150 stands each in time.