Metro loses valuation court case
In a recent court hearing, the magistrate ruled that a municipality cannot, in terms of common law, be enriched as a result of a mistake that they have made in an entry appearing in their valuation roll.
The Ekurhuleni metro was ordered to refund to Bairos Investments a sum of R30 069.90, plus interest, and all further costs.
The metro’s municipal valuer, Ian Smoothey, incorrectly categorised certain properties that appeared in the first General Valuation Roll of the metro.
“As a result of this mistake, the property owner was being charged in the wrong category in terms of the rates policy of the metro,” says Kokkie Herman, from Rates Watch.
He adds that an objection was lodged by Boksburg-based Rates Watch against the incorrect entry made by Smoothey.
“This objection was dismissed by Smoothey.
“Rates Watch then lodged an appeal, and at the appeal board hearing the municipal valuer conceded that a mistake had been made,” says Herman.
The Ekurhuleni Appeal Board upheld the appeal lodged by Rates Watch.
Rates Watch requested that the entry be back-dated to July 1, 2009, but this was refused by the municipal valuer, as well as the metro.
“Rates Watch was left with no option but to bring an action against the metro based on unjust enrichment.”
In this case, the property was zoned as “industrial”, but it’s usage in terms of the rates policy was “business and commercial”.
The tariff for “industrial” property as at July 1, 2009, was 1.5 cents in the rand, whilst the tariff applicable to “business and commercial” was only 1.2 cents in the rand.
Properties zoned “industrial” but used for purposes such as warehousing, storage, panel beating, showrooms and workshops could all be entitled for a category review and refund of incorrectly levied rates.
All property owners who are uncertain if their property has been correctly categorised should seek professional advice.
