The Ekurhuleni Municipal Valuation Roll tender clearly stated that preference would be given to a local firm, however, in a surprise decision it was awarded to a Durban-based company. They had the onerous task of valuing in the region of 650 000 properties, in a municipal area where they may not have intimate local knowledge.  Would this not severely increase the likelihood of errors being made?

Clive Massel, Professional Valuer, Fellow of the South African Institute of Valuers and past Municipal Valuer for several major East Rand towns since 1972, states that he has been approached by many affected residents and this in turn has highlighted the first of many incorrect valuations appearing on the Ekurhuleni roll.

One typical example is a R5,4 million Church that was correctly valued, but incorrectly categorised as a business. This will make the Church liable for rates of approximately R66,000 per year, whereas they should not pay anything. Massel, CEO of Rates Watch emphasizes that you need to ensure that the amount your property was valued at, as well as the category it has been allocated is correct, to avoid paying unnecessarily high amounts. “Remember, the category is directly linked to the level of rates you will pay!”

“Another client of Rates Watch has a sectional title property and the sectional title register has not been opened yet. The Ekurhuleni valuation roll has listed each unit separately and in addition the entire parent property has been valued as well. Clearly a double valuation and in turn resulting in double rates that will charged as from 1 July 2009. Furthermore, the individual section title units do not exist in the deeds office – where did the valuers get their information from?”

According to Massel thousands of properties appear to have been omitted, one worth mentioning has a market value of R28 million. How many more have been left off the roll and why?

The following is an example of a typical objection being lodged by Rates Watch:

Municipal valuation:  R840,000  Rates Watch valuation:R400,000
Rates payable:  R420/month  Rates payable:R200/month

The owner will have to pay R5,040 instead of an amount of R2,400 per annum.  In this example Rates Watch will save the owner R7,920 over the 3 year period.  Keep your hard earned money in your pocket!

Rates Watch, estimates that based on the tariffs of other metros, the following may apply to Ekurhuleni:

Residential: R0.0055 – R0.0065
Business: R0.01 – R0.013
Vacant land R0.035 – R0.045
Agricultural R0.02 – R0.035

Reasons why objections will fail?
•   Incomplete objection forms
•   Lack of accurate market evidence
•   Objections are based on the rates and taxes increase
• Incorrect building information
• Inaccurate financial information.

Why using professionals will benefit you?
•   Extensive years of experience
•   Proven objection track record
•   Substantial database at their disposal
• Intimate local knowledge.
 

“If you wait until you get your July 2009 account, IT WILL BE TOO LATE!” concludes Massel