By Jerry Margolius
The 2022 General Valuation roll for the City of Cape Town will be open for public inspection and objection on or about 21 February, which will bring about new rates charges based on the new valuations. The objection period will commence on or about 21 February 2023 and would like to close on 30th April 2023.
The impact for property owners is that all properties within the boundaries of the City of Cape Town will be re-valued based on the market value as at 1 July 2022. The new rates and taxes will be payable on the properties, in terms of the new general valuations, as from 1 July 2023.
Property owners should receive notices in January/February 2023 of the new General Valuation (market value) of their properties and owners will be given the opportunity to object over a 60-day objection period, terminating 30 April 2023.
The 60-day objection period is rather short and upon receiving notices, owners should immediately ascertain whether the values determined reflect reasonable market values of their properties as at 1 July 2022. If not, they will need to object to the values themselves or employ the services of a registered professional valuer to assist with their objections. The court has already ruled that objection forms must be correctly completed and reasons given for the proposed objections.
Once the objections are received by the Council, within the requisite time period, the valuations will be assessed by a municipal valuer, who may either agree with the objections and amend the municipal valuations or reject the valuations in the objections.
The process takes time and property owners should get their objections in sooner rather than later. The municipal valuer may also recommend an increase in the values of the properties, if the values published in 2022 General Valuation Roll are found to be too low. In some instances, the appeal board will need to confirm the adjustments.
Upon receipt of the responses to the objections, if the owners are dissatisfied with the outcome of the objections, the owners may appeal against the new market values, within 30 days of notice of the ruling of the objections. An appeal board hearing is a formal hearing and the owners or their valuer will be given an opportunity to provide oral evidence, as well as an opportunity to cross-examine the municipal valuer. The onus is upon the owner to prove the municipal valuation is wrong. The owner needs to therefore ensure that the appeal application is well prepared with appropriate motivation. The services of a registered professional valuer should be engaged for the appeal, as the owner may be able to achieve substantial savings if it is professionally handled.
Having been involved in Municipal Valuations and objections for more than 40 years, it is essential to remind owners to co-operate with the Valuation Department and to provide any reasonable information that they require. When lodging an objection it is important that you retain a copy for your records and to obtain a receipt as confirmation of the lodging of the objection.
It is essential in properties rented out that the tenant discusses the valuation with the owner so as to ensure that the owner does not prejudice their objection from the outset. This is very important particularly in retail, commercial and industrial premises. Tenants are often liable for the rates increases and also have a right to object.
We provide a comprehensive service of undertaking the valuation, attending on the objection and if necessary, the appeal. Remember any reduction obtained in this process can affect the rates you pay for 3 to 4 years, so it is often wise to obtain professional help.
There is concern that owners are receiving letters late and may not be mindful of the fact that there is a general valuation in fact taking place as little has come through in the media. With most people relying on electronic communication and especially new property owners, we are concerned that they will not have sufficient time to object by 30 April 2023.
The status of property values in some areas over the past 3 years is likely to result in more objections. However, it will be important to assess your valuation prior to lodging an objection. Our company will not submit frivolous objections where we are of the opinion that there is no likelihood of any success.
For more information or assistance with a valuation and your objection, contact Jerry L Margolius & Associates (incorporating Margin Property Valuation Services ) 021 001 8204 I 082 425 8793 or send an email to info@appraise.co.za.
Search the Cape Town valuation roll.
Author:
Jerry Margolius registered Professional Valuer/Arbitrator/Chartered Surveyor (Valuation) MRICS Fellow (Life) FAIV / M RICS / F Ass of Arbitration / Appraiser
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