BUSINESS owners in Sodwana Bay, Mbazwana and Manguzi are currently engaged in a rates battle with their local municipality, which they claim is intent on overcharging small, seasonal businesses to make up the shortfall for those who do not pay.
Heavily reliant on seasonal tourism to make ends meet and employ locals in an area rampant with unemployment, business owners feel they are being targeted with what they feel are rates determined by wrong valuations, rather than being encouraged to create employment opportunities.
Operating on Ingonyama Trust Land, which is itself alleged to be one of Umhlabuyalingana Municipality’s biggest debtors, businesses and residents were previously exempt from paying municipal rates.
The municipality is now, however, clamping down on unpaid rates. Those who started receiving rates invoices from 2009 have been told in no uncertain terms that all arrears must be settled.
Many businesses were added to the valuation roll only last July, meaning their arrears are significantly lower, despite the business having been in operation prior to last July. While the municipality’s list of businesses is incomplete because most businesses were not visited during the valuation period, those that are on the valuation roll are being charged rates at 3%, significantly higher than most municipalities.
No services
‘For some businesses the rates can be as high as 10% of their annual turnover. The area relies on seasonal tourism,’ said one irate business owner who asked to remain anonymous.
Apart from a few rubbish containers in the area, most businesses allegedly receive no municipal services that justify paying rates.
According to property owners, the municipality in February agreed the valuations were too high and admitted not all businesses were visited during the valuation period. Furthermore, a lower rate of 1% was offered, but was not corrected on the arrears. A compulsory debt write-off is still pending council approval and business owners want rates to be phased in over three years.
They say municipal services must justify the paying of rates and they want transparency, responsibility and accountability of the council.
Neither Umhlabuyalingana Municipality nor Co-operative Governance and Traditional Affairs (COGTA) Media Officer Lennox Mabaso responded to the Zululand Observer’s queries regarding Ingonyama Trust Land leaseholders’ responsibility to pay municipal rates.
The Municipal Property Rates Amendment Act was approved in August last year and, according to previous reports, holds Ingonyama Trust liable for rates levied on its land.
@TamlynJolly
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