The big wheels of the Makhado Municipality are rolling concerning the controversial property rates policy.

The conclusion of one of the important stages in the process has been reached with the completion of the valuation process. The draft valuation roll of properties has been completed and can now be seen by the public. Owners have one month to object.

"The draft valuation roll 2008/2012 is open for inspection ... it will remain open for inspection until 7 April 2008 which is also the final date on which objections may be lodged," was the response from Mr Louis Bobodi, municipal spokesperson.

The final draft of the property rates policy was presented at a meeting on February 28 at the show hall.

The question on every property owner’s mind is what the rate in the rand will be and how it will affect people´s pockets. Unfortunately, the answer to that question is not yet known.

"The rate in the rand will be determined by Council at the final budget meeting … The new rate will be calculated during the budgeting process when the municipality has to determine its projected revenue for the 2008/9 financial year." The municipality will also follow national guidelines on the subject of determining the rate and the ratio as dictated by the Local Government Municipality Property Rates Act, no. 6 of 2004, and the regulations promulgated in terms thereof. The Minister for Provincial and Local Government has proclaimed broad guidelines for, amongst others, determining the rates and as a sphere of government, the Makhado Local Municipality will abide by such guidelines.

"Council will, at the budget meetings, determine the rate in the Rand and no one person can at this stage be accurate in furnishing any information about what it will be," Bobodi said.

So what is the current rate? The current rate is 9 cent in the Rand of the site value of each property which is rateable.

Bobodi said that the property values were last determined in 1994 and in terms of the Local Government Rating Ordinance, 1977 (Ordinance 11 of 1977). Only the site value was used for calculation of property rates and not the total value, which includes improvements on property.

"The municipality has since 1994 not implemented updated valuations but merely increased the rate annually, hence it stands at present at 9c in the Rand of the site value only of rateable properties – you will find that some prime properties pay as little as R42 per month for property rates of the site values that were determined in 1994," states Bobodi.

The cent in the Rand will not be the same for all owners, according to the Final Draft Property Rates Policy and the presentation of the policy. In the development of a draft policy, different rates may be levied by the municipality. The municipality may determine special rating areas.

Criteria to be used will be the nature of the property, such as farm or residential, and the promotion of social and economic development. Differentiation will be done by setting different cent amounts in the Rand, rebates and reductions. Rebates are applicable to several categories of property and several categories of owners. Applications are required and the municipality decides on the rebates.

Municipal properties are exempted from paying rates as are residential properties with a market value of less than R20 000.

The municipality will phase in rates in respect of newly rateable property. There will be a 75 % discount in the first year, 50 % discount the second year and 25 % discount in the third year. Public benefit organisations are 100% exempted in the first year only. For the next three years, they are rated as newly rated property.

The municipality has discretionary power to increase the discount.