Rebates on rates and taxes for 2014/2015

ALBERTON – IRASA urges residents to make sure that they get the correct rebates on their rates and taxes due to them. Pensioners already on the system will remain until end July 2017 (linked to valuation roll period).

According to councillor Izak Berg (IRASA) pensioners should re-apply in respect of the additional pensioners rebate if there is a change in their financial situation, for an example, a decrease in income, resulting that they could fall under another percentage rebate. (Section 2 as per the application form which is based on a percentage rebate per income per the gliding scale).

Residents who reach the age of 60, can register on the date they turn 60 and do not have to wait for the next year’s budget or valuation roll to register. The rebates below are applicable from July 1, 2014, but we suggest residents register now to ensure they get the rebates due to them.

According to Section 15(1)(b) of the act read with Council’s Property Rates Policy, the Council grants, the following reduction in market value and rebates on the rate levied for the financial year 2014/2015 to any owner of rateable property in the following circumstances:

1. That in terms of section 17(h) of the Municipal Property rates Act, No 6 of 2004, the impermissible value of the market value of a property assigned to the residential category in the valuation roll or supplementary valuation roll, be determined as R150 000.

2. Indigent household – Owner of residential property, registered in terms of Council’s approved indigent policy, be exempted from paying property rates.

3. Child headed households – That a child headed household registered in terms of Council’s approved indigent policy, be exempted from paying of property rates.

4. Age/Pensioners reduction, disability grantees and medically boarded persons – That in addition to the reduction in 1 above and subject to requirements as set out in Council’s Rates Policy, an additional reduction of R150 000 on the market value of residential property owned by person older than 60 years of age or registered as “Life right use” tenant in deeds office (Age/Pensioner reduction), disabilities grantees and medically boarded persons be granted.

5. Aged/Pensioners rebate, disability grantees and medically boarded persons – That in addition to the reduction in 1 and 4 above, an additional rebate be granted in respect of sliding scale based on average monthly earnings.

The applicant must:

i. be the registered owner of the property or registered as “Life right use” tenant in deeds office;

ii. produce a valid identity document;

iii. be at least 60 years of age upon application, provided that where couples are married in community of property and the property is registered in both their name, the age of the eldest will be the qualifying factor, or approved disability grantee or approved medically boarded person;

iv. not be in receipt of an indigent assessment rate rebate;

v. reside permanently on the property concerned which consists of one dwelling only and no part thereof is sub-let;

vi. confirm the aforementioned details by means of a sworn affidavit and/or latest income tax assessment;

vii. On approval, the following rebates will be applicable

Average Monthly earnings in respect of preceding 12 months.

R0.00 to R2 520.00 (2 x State pensions when amended) – 100% rebate on assessment rates

R2,520.01 to R4 900.00 – 85% rebate on assessment rates

R4,900.01 to R6 400.00 – 70% rebate on assessment rates

R6,400.01 to R7 900.00 – 55% rebate on assessment rates

R7,900.01 to R11 900.00 – 40% rebate on assessment rates

viii. That the minimum “average monthly earnings” be adjusted annually and effective in accordance with National Government Budget announcement in respect of state pensions.

6. Municipal – That non-trading services be exempted from paying of property rates.

7. Sporting Bodies – used for the purposes of amateur sport and any social activities which are connected to sport: 90 per cent rebate in respect of the amount levied as rates on the relevant property but subject to existing agreements between club and Council not determining a different position.

8. Welfare organisations – registered in terms of the National Welfare Act, 1978 (Act No. 100 of 1978), be rebated 100 per cent in respect of the amount levied as rates on the property.

9. Public benefit organisations/Non-Governmental Organisations (NGO’s) and Cultural Organisations – approved in terms of section 30 of the Income Tax Act 58 of 1962, read with items 1, 2 and 4 of the Ninth Schedule to that Act, be rebated 100 per cent in respect of the amount levied as rates on the property.

10. Protected areas/nature reserves/conservation areas – That protected areas/nature reserves/conservation areas be exempted from paying of Property Rates.

11. Private schools, Universities, Colleges and Crèches:

i. Private (Independent) primary and secondary schools (regardless of whether subsidised or not), registered as educational institutions, be rebated between 70 per cent and 100 per cent in respect of the amount levied as rates on the relevant property, subject to prior application and submission of prior years’ audited financial statements. Rebates will be adjusted negatively in accordance with percentage ratio between net profit and gross income in the following categories:

Net profit after tax % 0.00% to 10.00% = 100% Net rebate %

Net profit after tax 10.01% to 20.00 = %90% Net rebate %

Net profit after tax 20.01% to 30.00% = 80% Net rebate %

Net profit after tax 30.01% to 40.00% = 70% Net rebate %

ii. Private (independent) Universities and colleges, registered as educational institutions not subsidised by state, 20 per cent be rebated in respect of the amount levied as rates on the relevant property.

iii. Crèches, registered as educational institutions, 100 per cent be rebated in respect of the amount levied as rates on the relevant property.

12. Vacant unimproved stands – That a 75 per cent rebate be granted on residential property on which a dwelling unit(s) is/are being constructed and which will be used exclusively for that purpose, subject to the following conditions:

i. That an approved building plan is supplied;

ii. That a residential dwelling unit(s) be constructed on the property;

iii. That the 75 per cent rebate be granted for a maximum period of eighteen (18) months from the date the approved building plan was supplied;

iv. That the occupation certificate be supplied at the end of the eighteen (18) month period;

v. That the failure to supply the occupation certificate will result in a reversal of the 75 per cent rebate already granted; and

vi. That in the event that the said property is sold prior to the issue of the occupation certificate, the rebate already granted be reversed.

13. That rebates in respect of items 2 to 12, but excluding 6 – Municipal and 10 – Protected areas/nature reserves/conservation areas, BE SUBJECT to the submission and approval of required application.

Please feel free in contacting Izak Berg: idberg@telkomsa.net or on 082 674 5317 should you need more information.

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