Property Rates bill criticism - general

Submissions to the provincial and local government committee suggest that site value would be a better basis for assessing municipal rates. Michael Jacques of the School of Economic Science in Johannesburg was quoted as saying that basing municipal rates on property improvements would achieve the exact opposite of what the Bill was intended to do.

A uniform rating system based on the value of improvements would stifle progress since it in effect amounted to an appropriation of the value added by the owner. Site value is more suitable as a basis for rates since its value stems mainly from its location and corresponding public property valuation factors like infrastructure, proximity to labour, and raw materials and markets.

It is important that the bill guards against raising the tax burden on marginal areas, otherwise the present inequality between prime and marginal areas will be further increased.

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