The City of Cape Town announced on Wednesday that the majority of homeowners can expect a reduction in property rates, despite significant increases in the most recent general valuation.
Approximately 60% of households are expected to experience a reduction or no change in their municipal rates following the city’s announcement of a 10.2% cut in the residential rate in rand.
The Chairperson of the Cape Town Collective Ratepayers’ Association, Bas Zuidberg, said that some areas show increases far above the percentage quoted by the city.
“This only affects the rates portion of the municipal bill, which is just one part, as there are other components also linked to the valuations, such as fixed water and sanitation charges. The Collective Ratepayers’ Association (CRA) of the City of Cape Town has opposed this in the High Court and is still awaiting judgment,” remarked Zuidberg.
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The City’s Mayor, Geordin Hill-Lewis, told VOC News that the proposed 10.2% rate-in-rand decrease, along with extended rates benefits to more middle-class homes, will shield the large majority of ratepayers.
“Over 60% of all homes will see very low rate increases, despite their property assets showing strong value growth, which also increases their family’s net worth.
“Cape Town is South Africa’s one city that works, offering the best services, record infrastructure investment, the chance for your property assets and personal wealth to grow in value no matter who you are, and the lowest total monthly bills among South Africa’s metros, even when taking higher property values into account. This is the difference compared to other cities, where property values are declining even as rates rise and services, sadly, collapse,” said Hill-Lewis.
Photo: Supplied
