Municipal Levies and Property Developers
Recently, we were approached by a developer of a large housing estate. The developer had noticed that his municipal levies continuously remained extremely high despite the parent erf diminishing in size with every new plot sold. The problem the developer was experiencing was that he would be required to bring all arrear municipal accounts for the parent erf up to date before he could sell a plot.
Eventually, it transpired that the municipality had not taken into account the fact that the parent erf was reduced in size after each sale, hence vastly disproportionate rates amount were being charged.
Section 78 of the Local Government Municipal Property Rates Act 6 of 2004 states:
“78 Supplementary valuations
(1) A municipality must, whenever necessary, cause a supplementary valuation to be made in respect of any rateable property-……
…(c) subdivided or consolidated after the last general valuation;
… (d) of which the market value has substantially increased or decreased for any reason after the last general valuation;……
…(f) that must be revalued for any other exceptional reason…”
Despite numerous requests by the developer to the municipality, no help was forthcoming. We were instructed by the developer to bring an application in the High Court to compel the municipality to re-evaluate the municipal rates levied retrospectively.
We are currently busy with this and hope to have good news shortly.
For assistance or more information please contact:
T 021 422 1323 E email@example.com
Tagged abrahams and gross, attorney cape town, basil de sousa, cape town attorney, Henno Bothma, high court litigation, litigation, Local Government Municipal Rates Act, municipal rates levy, property developers, property law, property litigation