City of Joburg has given property owners over R2-b in rebates

Business and property owners can still find value for the property rates charged by the City of Joburg, as the ratio and tariffs remain relatively low amid a sluggish economy.

Johannesburg is striving to return to basics and one of its strategic priorities is “a business-friendly city”.

In the last financial year, the City gave back its customers over R2.2-billion rebates for different categories of properties for those who qualified. This month, February, the City embarks on another round of Rates Policy, Credit Control Policy and Debt collection Policy review meetings to get property owners’ inputs.

Sihle More, the group head for the property branch in the City, said the municipality seeks to use its rates policy to assist the under-privileged and ensure businesses retain facilities in the City. She says as the City consults its customers, it’s mindful of the impact brought by Covid-19 and the struggling economy on property owners.

“The City understands that the economy is not doing well. There have been petrol price increases, job losses from the lockdown, electricity increases and inflation rise. In consideration of the sluggish economy, the increase in rates was kept at a nominal 2% across all categories of properties compared to the CPI increase, which was over 4% during the previous financial year,” said More.

She said a lot of inputs from both the businesses and homeowners have over the years shaped the City’s rates policy. These engagements have resulted in the City having a balanced rates policy.

Over the years, the City has gradually decreased the business ratio that was originally sitting at 1:3.5 to currently at 1:2.5. Residential properties are carrying the ratio of 1 and are used as the base.

At the same time, many property owners now enjoy lots of rebates, according to More.

“At the height of the lockdown last year, the City introduced disaster relief rebates for both residential and business properties to the tune of R446-m.

“Pensioners in the City enjoy massive rebates on their homes. Those who are 70 years old and upwards don’t have to pay property rates on their residential homes valued at over R2.5-m.

“Pensioners between 60 and 69 years qualify for 100% rebates on their homes not over R2.5-m in value, but this is dependent on their income bracket. Some pensioners also qualify got a 50% rebate on rates and the details of how they qualify is defined in the policy.

“If you own property that is less than R350 000, you are exempted from paying property tax and refuse on your residential property. More appealing for homeowners is that the first R350 000 of a property’s value is exempt from rates irrespective of the value of your residential property.

“There are more other rebates the City offers such as the rebates for housing for retirement schemes or retirement villages, which are becoming more popular, rebates for unemployed homeowners, protection of animals and heritage properties among others.”

More said the City is also encouraging developers to develop the land within the identified economic zones by giving special rebates. These areas include nodes points like Soweto to CBD along with Perth Empire, CBD to Alex, Alex to Sandton, Turffontein node and the mining belt.

These areas were identified as areas where one can live, work and play within the City.

More urged property owners to take advantage of the upcoming meetings to shape the Rates Policy, Credit Control Policy and Debt Collection Policy during the review.