City of Joburg revaluing properties after ‘serious mistakes’

The City of Joburg has admitted serious mistakes in controversial property revaluations, which has seen thousands of properties vastly overvalued.

However, the City said the errors were made in capturing data relating to commercial properties.

In all, 8 000 properties are to be revalued. But the city is unable to say if all of those are commercial properties.

Mayoral spokesperson Luyanda Mfeka said the matter was discussed by Premier David Makhura and mayor Herman Mashaba in response to concerns raised by the public concerning the 2018 General Valuation Roll.

Mfeka said they had noted that the model used in the valuations process resulted in some residents’ properties being overvalued, leading to considerable rates increases, many over 100%.

Regarding the model used, he said it is a formula used to value certain types of properties in specific areas, taking into consideration various factors.

In the case of income-producing (commercial type) properties, part of the formula calculates the potential income (rental income) of a property.

“The rate (rent) per square metre, which is multiplied by the rentable area, was captured incorrectly, which resulted in overstating the income of these properties, which therefore resulted in the over-valuations,” Mfeka said.

He said the correct data has since been captured.

Notices were being issued to owners of affected properties from the beginning of next week.

“In addition to this, the City has committed to testing the remainder of the values in the valuations roll so as to identify any other properties which may have been affected.

“This process now means that the owners of these 8 000 properties will begin receiving, from next week, section 78 notices which will provide revised valuations,” he said.

According to Mfeka, the notices would advise the owners that they may lodge a request for valuations review with the municipal manager in writing, should they still disagree with the amended valuations.

The review must be lodged within the specified period as printed on the notice. The metro council would ensure that the 8 000 affected properties would be prioritised in the review process.

“Work on these cases will begin immediately with a view to issuing revised valuation notices as soon as possible,” Mfeka said.

If there are disputes on the outcomes of the valuation process, residents will have an opportunity to appeal the valuations through the appeal board appointed by the MEC of cooperative governance and traditional affairs.

“The premier, having engaged with the city, seemed to be satisfied that the city was proactively taking all available steps to be responsive to those residents whose properties have been over-valued,” he said.

– ericn@citizen.co.za

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