Chairman: Ebrahim Asmall: 083 2623 276
At present – 1 July 09 – the Municipality has gone ahead an implemented the new rates despite the ~9000 objections and exercise done twice As well as the “PMB / Msunduzi” Northern Areas Ratepayers Association having lodged complaints of major discrepancies
- I assisted with the analysis and found easily 10 000 residential errors in 60 000 entries residential & non residential => easily over 20% Valuations are flawed
My thoughts on the subject :-
1. All property owners understand that rates need to be paid – in the
case of a residential property it has become ridiculous
2. As mentioned on your site – 20% middle income earners are expected to
carry the weight – the other 80 % made of the poor & the Business
magnets.
3. My personal experience the property rates have jumped 400 % in the
last 8 years & property value on roll jumped 700% and adjusted to
600% which is still ridiculous
a. Purchase Price R220,000 + Renovations to-date approx R90,000
=> R310,000 Total Value
b. 2000 – Rates = R2,500 p.a vs 2004 rates p.a R5,500
vs 2009 rates R12,788
c. We understood in 2004 that we need to help the poor so we
accepted the 100% jump
i. The government of the day has had 15 years to sort
itself out.
4. Rates has become a tax on Personal Savings
a. - It is only because of affordability that a home owner has
purchased a home as opposed to renting
b. At the point of purchase some of the considerations that go
through your mind are :-
i. How will the bond affect my monthly budget ?? [ keep
in mind interest rate changes ]
ii. How will utilities affect my monthly budget ??
iii. How much Rates will it cost me to own this house ??
c. On that basis you choose a dwelling according to your means
you have decided to for-go certain activities [ movies /
clubbing / pubbing etc ] this means you are SAVING to pay for
the bond and renovations & maintenance that go hand in hand
with owning a house
d. Now it becomes nonsensical to get taxed because you improved or
afforded a better home.
e. Because of your savings you can afford bricks instead of blocks
– Tiled floors instead of lino on cement, Tiled roof instead of
Tin Sheeting
f. IT IS ILLEGAL IN SA TO BE DOUBLE TAXED – who will take up this
challenge to constitution court ??
5. To say that the valuation is based on market value [R1,700,000 absurd
amount] and not on purchase price [R220,000 + renovations to date
R90,000] is ridiculous -
a. Most of the middle income earners buy a home to live in not
re-sell – ie Long Term usage
b. This means that the market value has not been realized – ie
cash flow or money in your pocket
c. You are taxed on the Realised Gain if you were to sell it under
CGT – Capital Gains Tax
d. So this means that we are being double taxed when we use Market
Value method for rates
e. Show me how the inflation rate is being circumvented in this
case ??
f. Market Value has been driven by Estate Agents my guess is 5%
really achieve this price at the time of selling. [ If I am
wrong please buy my house for R1,7 Million – bring the
paperwork ]
g. Some people have done research that in their suburbs over 50%
of house have a Market Value as per municipality of more than
R1 Million – they have yet to find 1 house sold more than
R800,000
h. So clearly the pricing is HYPER INFLATED
6. We understand the plight of the poor – we grew up there-from but
consider that if any house is more than R100,000
a. 0.5% per annum on R100,000 = R500 /12 = R41 per month
b. R500 times 200,000 houses [cheap houses per city as an
example ] gives you R100,000,000
c. It lightens the burden – It fosters responsibility – ie freebie
days are gone
d. Drive through the poor areas & “Black Townships” – see taxi
drivers with a fleet parked outside his shack which has DSTV
Dish – [ I still cannot afford one because I pay the same money
it into my bond ]
7. Finally the Quality of service for Rates
a. Constant non delivery – cutting of the grass on street in front
of your home – you have to pay a gardener to do this
b. You have to pay for security alarm because of safety
c. You are already paying for Garbage & Sewerage costs separately
& VAT on top of it
d. You are already paying for Lights & Water
e. So where exactly does the money Go To ????
i. - Fat Cats with 1 week MBA Diplomas ?? R 1 Million p.a
salary [ so they can afford their rates on their
Mansions ] ???
ii. People who need to give themselves bonuses because
they have done an excellent job in collecting exorbitant
Rates ?????
f. Street lights more off than on
g. Potholes un-attended to more months on end some areas even more
than a year in some cases
h. Can you drive in the city with Taxi drivers as a law unto
themselves ???
Pedestrians walking all over the road ??
Tags: Pietermaritzburg
do we have ratepayers meetings or not. we have to now get rid of all the incompetent workers who’s wages we are paying for.