<html> <head> <title>The new GV and rates

The new GV and rates

The new GV and rates

10 May 2002

The current rates and valuations system in the city of Cape Town is clearly inequitable and needs to be changed. The general valuation [GV] is a welcome step in the direction of equity, because for the first time there will be a single valuation roll across all the former municipalities in the city of Cape Town.

The impact of the GV will be felt in two ways:

There should be relief for areas (mainly poorer areas) that have been paying more than they should have relative to areas where properties have risen sharply in value since the last valuation;

However, where properties have experienced increase in value, property owners will have to pay more.

The ANC is not in favour of phasing in the impact of the GV. This will be inequitable and continue cross - subsidisation of those property owners in high value areas. It is in favour of implementation on 1 July 2002. The rates policy, which is crucial in determining how much property owners will pay, needs to strike a balance between conflicting interests. It needs to assist the poor and vulnerable groups such as elderly and disabled, create certainty in the property market, and to promote investment and job creation.

The ANC is also proposing:

  • A first amount of value of residential property exempt from rates.
  • Rebates for the elderly, disabled and single parents
  • Keeping changes for basics refuse collection and sewerage with the rate bill.

Impact of the new GV:

We expect that rates in about 60% of the suburbs of Cape Town will be reduced with the implementation of the new GV. Only the super wealthy areas will experience a huge hike in rates, because properties are valued in millions (and rates will not be based on outdated 1970’s property values). But this is only a small portion of the ratepayers of this city.

The DA/DP should be held responsible for the big, once off hike in the very wealthy areas. Remember the DP brought a court order in 1992 against the implementation of a new general valuation in property values. If a new GV were implemented then, the impact on ratepayers would have been more gradual.

The DA is only concerned about the rich people - not all the people. While the DA evicts poor people from their homes because they cannot pay their rents, cuts off their water and sells the off their properties, it is bending over backwards to accommodate those living in properties valued at millions of rand.

The ANC’s door is open:

The ANC is concerned about all people - not only the very wealthy. Our view has always been based on principles of fairness and affordability. Just as we are concerned about ratepayers in Tafelsig and other areas - who are making arrangements to pay off their accounts - we are concerned about any individual ratepayer who cannot afford to pay his/her rates. Any ratepayer - wherever he/she may live - should make representations to pay off his/her rates if the rates are unaffordable. Our door is open.

For further input, please contact ANC Unicity Chief whip Peter Gabriel on 083 629 0883, Fezile Calana on 083 394 3830 or Mac Ozinsky on 082 414 7147.

Issued by African National Congress - Western Cape