City’s budget shock for landlords, legal action coming

Property owners of the city that rent out their properties, are up in arms and are threatening Polokwane Municipality with legal action.
This comes after the municipality resolved that, as from 1 July, landlords will be liable to pay three times more assessment rates on residential properties that are rented out.
During the municipality’s budget meeting that took place last Monday, Democratic Alliance (DA) councillor Franco Marx was ruled out of order by speaker of council Mariri Ralefatane when he attempted to alert council that the new tariff is not provided for in the municipality’s Property Rates Policy and that an amendment to that effect was not subjected to the required public participation process. Marx also insisted that the DA’s objection be noted in the minutes, a request that was also overruled by the speaker.
DA caucus leader Frank Haas asked for a division and that the DA’s dissenting vote on the matter be recorded to ensure that DA councillors will not be held accountable if any legal action is taken against the municipality.
Marx told Polokwane Observer that he has been approached by consumers in his ward enquiring about the effect on them due to the aforesaid decision by the municipal council.
Marx indicated that the DA obtained legal advice on the issue and pointed out that the DA’s attorneys previously successfully reviewed similar resolutions of municipalities in the High Court due to a lack of public participation.
“As landlords we will be forced to transfer the effect of the higher assessment rates to our tenants that are already cash strapped and are also affected by the drastic increase in municipal tariffs imposed by the municipality,” a disgruntled resident said and added that he was considering legal action against the municipality.

Story: BARRY VILJOEN
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