Speaking in an interview on MoneyWeb, he said that, "it’s absolutely clear to us that we have no intention whatsoever to charge those people, who own more than one house, commercial or business rates on their additional houses. In fact, the intention is to ensure that people who use their residential properties for bed and breakfasts or guesthouses or small hotels, and who are therefore engaging in commercial activity, should clearly therefore be subject to commercial or business rates". The bill was aimed at clarifying aspects of the original act and to provide a tighter national framework within which municipalities can levy property rates. One which actually protects homeowners from excessive rates.
Were the intentions true, one would be seeing a significant rise in property rates. In Johannesburg, Pretoria and Cape Town rates on a R1 million property would increase from R372 to R1 533, R622 to R2 015 and by R375 to R935 a month respectively.