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GENERAL VALUATION 2013

YOUR QUESTIONS ANSWERED...

The Nelson Mandela Bay Municipality is preparing to conduct a General Valuation of 258 054 properties to update its Valuation Roll. Your most frequently asked questions about the General Valuation are answered below.

1. What is a General Valuation?

A general valuation is the valuation of all properties within a municipal area for purposes of rates which is done in terms of the Municipal Property Rates Act of 2004.

2. What is the date of valuation?

The date of valuation is the date at which properties are “pegged” or “fxed”. The General Valuation is tied to a specifc date, namely the date of valuation. The new valuation will have a date of 02 July 2012.

3. Why do we have to go through this exercise of property valuation? The purpose of this exercise is to determine a fair value of all properties.

4. How will my property be valued?

There are 258 054 properties in Nelson Mandela Bay. They fall into two main categories: Residential and Non-residential.

The residential value is based on market value. This is the price that a willing buyer would pa for the property on the open market.

The valuation of non-residential properties is slightly different: it is not only calculated on seller, willing buyer” principle, but also takes into account the location of the property, its con factors such as rental occupancy levels and rental cost’s, and, of course, building costs.

5. Will my rates go up as a result of the valuation?

The total amount of rates collected each year is a budget balancing fgure that comprise some 16% of the total municipal budget, which budget generally rises by around the an infation rate each year. The increase in the budget shortfall each year determines the increa in property rates.

The amount that each property owner pays is determined by the value of his/her property in relation to the other properties in the Nelson Mandela Bay municipal area.

6. What if I cannot afford to pay my rates?

The Act does allow for municipalities to provide for exemptions, rebates and reductions in their rates policies based on local conditions and circumstances. For the purposes of granting exemptions, rebates and reductions in respect of owners of categories of properties, it may include the following:

Indigent owners

Owners dependent on pension or social grants for their livelihood Owners temporarily without income

Owners of agricultural properties who are bona fde farmers Owners of Game Parks

Owners of land where important biodiversity areas or environmentally sensitive areas exist