MUNICIPAL PROPERTY RATES ACT (MPRA) 6 OF 2004

AS AMENDED (2014)

The Municipal Property Rates Act was amended in 2014 and assented to by the President on
15 August 2014. This Act is called the Local Government: Municipal Property Rates
Amendment Act, 2014 and came into operation on 1 July 2015, a date determined by the
President by proclamation in the Government Gazette.

Municipalities should comply with the Municipal Property Rates Act (MPRA) as property
valuations provide a substantial portion of the income of the municipalities that will enable
them to provide service delivery as per the mandate of the Constitution. A municipality will
be compliant if the existing procedure, processes, and policies of the Act are followed to the
letter.

The difference between policy and procedures is that a policy is more strategic, and vision
directed, where procedures concentrate on the implementation of the policy. Policy addresses
the will and needs of the community whereas procedures are there to lead administrators
towards good governance and accountability.

Bylaws are municipal legislation and thus enforceable.

The purpose of the MPRA is to:

 Standardise the power of a municipality to impose assessment rates on property as

per section 229 of the Constitution;
 Provide a framework for regulating the rating of property throughout the country;
 Exclude certain properties from being rated in the national interest;
 Make provision for municipalities to implement a transparent and fair system of
exemptions, reductions, and rebates through rating policies that are a product of
public participation;
 Make provision for fair and equitable valuation of properties;
 Make provision for a fair objection and appeal process regarding the valuation of
property;
 Assist in building economically and financially viable municipalities to enable them to
meet the service delivery needs of their communities.

This study material deals with the structure, powers, and functions of local government, which
are the municipalities. The executive and legislative authority of a municipality is vested in its
Municipal Council. A municipality has the right to rule the local affairs of its community and
the national or provincial government may not interfere in a municipality’s right to exercise
its powers or perform its functions. This is subject to national and provincial legislation as
provided for in the Constitution.

The object of local government

The object of Local government is to provide an accountable government that ensures the
provision of services to its community in a sustainable manner and to promote social and
economic development, all within its financial and administrative capacity.
Municipalities in co-operative government

Draft national or provincial legislation that affects the functions of local government must be
published for public comment before it is introduced in Parliament or a provincial legislature,
in such a manner to allow municipalities and other interested persons an opportunity to make
representations about the draft legislation.

Categories of municipalities:

The Western Cape province is divided into one metropolitan municipality (the City of Cape
Town) and five district municipalities. The district municipalities are in turn divided into
twenty-four local municipalities. The categories are as follows:

(a) Category A: A municipality that has exclusive municipal executive and legislative
authority in its area. (Metropolitan Municipality)

(b) Category B: A municipality that shares municipal executive and legislative authority in
its area with a category C municipality within whose area it falls. (Local Municipality)

(c) Category C: A municipality that has municipal executive and legislative authority in an
area that includes more than one municipality. (District Municipality)

National legislation defines the different types of municipalities that may be established within
each category. It also determined the criteria for determining when an area should have a
single category A municipality or when it should have municipalities of both category B and
category C.

Powers and functions of municipalities

By-laws are municipal laws whereas a resolution is a formal decision taken at a council
meeting by means of a vote. A resolution covers all actions of the municipality other than by-
laws. A by-law recommends some permanent rule that will remain in force until the by-law is
repealed and a resolution deals with matters of a special or a temporary nature.

A municipality may make and administer by-laws for the effective administration of these
matters, but a by-law will be invalid if it conflicts with national or provincial legislation.

Local governments have the power to administer local government matters listed in Part B of
Schedule 4 and Part B of Schedule 5 of the Constitution. (See Chapter 4, pages 12-13 of the
Constitution).
National sources of provincial and local government funding

Local government and every province are entitled to a share of income raised nationally to
enable it to provide basic services and perform the functions allocated to it. Provisions from
National government may come with a limiting condition, such as this income may only be
used for drought relief.
Additional revenue raised by provinces or municipalities may not be deducted from their share
of income raised nationally, or from other provisions made to them from national government
income. Equally, there is no onus on the national government to compensate provinces or
municipalities that do not raise their own income based on their monetary capacity and tax
base.

Provincial taxes

A provincial legislature may impose taxes and flat-rate surcharges on any tax, except for
those on corporate income tax, value-added tax, rates on property or customs duties. The
power of a provincial legislature to impose taxes must be regulated in terms of an Act of
Parliament, which may be passed only after recommendations of the Financial and Fiscal
Commission have been considered.

Municipal fiscal powers and functions

A municipality may impose assessment rates on property and surcharges on fees for services,
such as water and electricity provided by or on behalf of the municipality. The power of a
municipality to impose assessment rates may not be exercised in a way that materially and
unreasonably prejudices national economic policies and the national mobility of goods,
services, capital, or labour. The municipalities’ powers and functions may be regulated by
national legislation.

All this may be passed only after the Financial and Fiscal Commission have been consulted,
and any recommendations of the Commission have been considered.

The Municipal Property Rates Act (MPRA) no. 6 of 2004

An Act is legislation passed by Parliament and can only be amended by another Act of
Parliament.

The notes will also cover regulations, which fill in detailed procedures left out of the Act and
are commonly known as "subsidiary legislation". They require publishing by the Minister in
the Government Gazette to become legal.

The implementation of the Municipal Property Rates Act (MPRA)

The following will give step by step overview on how to implement the requirements of the
Municipal Property Rates Act to establish a valuation roll that will ultimately be used to levy
assessment rates.

STEP 1. DETERMINE THE VALUATION DATE

The valuation date of the general valuation must be decided first, but the date may not be
more than 12 months before the start of the financial year in which the valuation roll is to be
implemented. The financial year of the municipality runs from 1 July until 30 June of the next
year.

STEP 2. APPOINTMENT OF MUNICIPAL VALUER

The appoint of the municipal valuer, assistant municipal valuer(s), and data collectors can
happen even before the valuation date determined in the first stage.

The MPRA deals with the appointment and description of the municipal valuer, their functions,
rights and responsibilities, as well as the grounds for the termination of their contract. The
MPRA also deals with the four valuation methods, as well as generally recognized practices
and standards in the industry that the valuer must adhere to. The definition of market value
is given, and the valuation of sectional title units is specified.

STEP 3. SUBMISSION OF THE VALUATION ROLL TO THE MUNICIPALITY

The municipal valuer, upon appointment, can commence immediately with the valuation of
all properties in the municipality. On completion of the general valuation by the appointed
valuer, the valuation roll is handed over to the municipality.

Within 21 days of receipt of the valuation roll, the municipal manager must advertise in the
local media that the valuation roll is available and objections to it are invited. The
advertisements must be in the prescribed format and must advertise that the valuation roll
will be available for inspection for at least 30 days. A notice must also be sent to each property
owner with the municipal value of his property. This notice is also used to invite the owner to
object to the valuation within a prescribed period.

The objection period must be completed before the calculated assessment rates are
implemented, in other words, before the 1st July, which is the effective date of the new
assessment rates.

STEP 4. FORMULATION OF A RATES POLICY

The rates policy intends to determine how the municipality will calculate the assessment rates.
The formulation of the rates policy can commence as soon as the valuation roll has been
submitted by the municipal valuer.

The rates policy must accompany the municipality’s budget for the applicable financial year
when the budget is tabled in terms of the Municipal Finance Management Act (MFMA).

STEP 5. PROMULGATION OF RESOLUTIONS LEVYING RATES

A rate is levied by a municipality after a resolution is passed by the Council with a supporting
vote of a majority of its members. The resolution must be promulgated by publishing it in the
Provincial Gazette as well as display it for at least 30 days in the offices and on the website
as well as publish a notice in the media.

STEP 6. BY-LAWS TO GIVE EFFECT TO RATES POLICY

A municipality must adopt by-laws to give effect to the implementation of its rates policy.

STEP 7. REGISTER OF PROPERTIES

A municipality must draw up and maintain a register in respect of all properties situated within
the municipality, and such register must be divided into Part A and Part B.

Part A consists of the current valuation roll, including any supplementary valuation rolls.
Part B specifies which properties on the roll are subject to exemptions, rebates, exclusions or
phased rates.

STEP 8. IMPLEMENTATION OF RATES POLICY

The rates policy takes effect on the effective date of the valuation roll prepared in terms of
the MPRA. Assessment rates thus become payable from the start of a particular financial year
if the budget has been approved. For the City of Cape Town, the start of the financial year is
1st July until 30 June of the next year.

STEP 9. SUPPLEMENTARY VALUATION ROLLS

A municipality must at least once a year amend or update its valuation roll by causing a
supplementary valuation roll to be prepared. The valuation roll may be amended at any time
to reflect any changes on the valuation roll such as ownership, address details, etc.

STEP 10. ANNUAL REVIEW OF THE RATES POLICY

A municipality must review its rates policy annually. Any amendments to the rates policy must
accompany the municipality’s annual budget when it is tabled in the Municipal Council in terms
of the Municipal Finance Management Act.

When a municipality amends its rates policy, it must allow for community participation as part
of its budget process.

STEP 11. VALIDITY OF VALUATION ROLLS

A valuation roll takes effect from the start of the financial year (1st July following completion
of the objection period, which is usually around February/March of that same year). The
valuation roll remains valid for the financial year to a maximum of four financial years.

Information on the City of Cape Town General Valuation Roll for 2018
(GV2018)

A General Valuation Roll is a document containing the municipal valuations of about 875 000
registered properties within the boundaries of the City of Cape Town. All properties on the
General Valuation Roll are valued at market value as at the date of valuation.

Every municipality is legally required to produce a General Valuation Roll at least once every
four years, The City elects to produce a General Valuation Roll more frequently - once every
three years to minimize the impact of value changes on owners.

The GV2018 Roll was certified by the municipal valuer on 31 January 2019 and
implemented together with the approved budget on 1 July 2019. The valuation of all properties
on the GV2018 Roll was determined according to market conditions on the date of valuation as
at 2 July 2018.

The rate-in-the-rand to be levied against property values was determined by Council in March
2019, together with the tabling of the budget. This will enable t h e C i t y to fund municipal
services as outlined in the Integrated Development Plan (IDP) for the period July 2017 to
June 2022. The IDP is also aligned to the National Development Plan. Click on the link below
to access this informative document

The date of valuation for the GV2018 roll is 2 July 2018. All properties are valued as at their
market value on the date of valuation thus ensuring a fair and equitable rates base. All the
properties on the valuation roll, including Supplementary Valuation Rolls are valued as at the
date of valuation in order to ensure fairness.

The Municipal Property Rates Act, Act 6 of 2004, states that all properties on the valuation roll
must be valued at market value. Market value is defined as per the International Valuation
Standards as “the estimated amount for which an asset or liability should exchange on the
valuation date between a willing buyer and a willing seller in an arm's-length transaction after
proper marketing and where the parties had each acted knowledgeably, prudently, and without
compulsion”. The City’s valuations are therefore based on actual property transactions (sales)
that have taken place in the open market around the date of valuation. They are an indication
of the growth of property values and although the valuation is used to determine property
rates, which calculates to approximately 24% of the total income of the City, it is not a
randomly increased value.

The valuations staff have been collecting and reviewing sales that have taken place around the
date of valuation – 2 July 2018. The sales data is used in the Computer-Assisted Mass Appraisal
(CAMA) valuation model. CAMA is a computer-aided analytical procedure used by trained
professional valuers to value the large number of properties in Cape Town. This programme
makes valuation cheaper and faster, but still fair.

The GV2018 Roll was audited by an internationally recognized independent body –

International Property Tax Institute – focusing on the City’s compliance with international best
practice.

Property rates are calculated using the valuations of properties as they appear on the General
Valuation Roll 2018 (GV). Property rates based on the GV2018 valuations will be effective and
billed from 1 July 2019. The rate in the Rand (tariff) is usually finalized in mid-March and made
available on the website. As soon as the rate in the rand is finalized, it will be possible to
determine the rates payable on a property as from 1 July, which will be based on the GV2018
municipal valuation. The percentage increase (or decrease) on the value of a property does
not equate to the percentage increase/decrease in future rate payments.

THE IMPLEMENTATION OF THE MUNICIPAL PROPERTY RATES ACT (MPRA)

1. Property register/valuation roll

A municipality that intends to levy assessment rates on fixed property must do a general
valuation of all properties in the municipality. The valuation roll comprises of two columns,
Part A and Part B. Part A contains a municipal reference number, full name of the owner, the
legal description of the property (erf number), the rating category, physical address, erf
extent, and the municipal value at a specific date. Part B contains administrative information,
such as the effective date and the closing date of the objection period.
2. Date of valuation
A valuer for the municipality will be appointed even before a date of valuation is determined.
A valuation date is always needed when the value of property is determined. A municipality
must determine a date for the municipal valuation that may not be more than 12 months
before the start of the financial year in which the valuation roll is to be first implemented.
There is thus a difference between the valuation date, say 1 July 2018, and the
implementation date, which would be 1 July 2019, the start of the municipal financial year,
when the assessment rates takes effect. The valuation roll remains valid for that financial
year or one or more subsequent financial years, but in total not for more than four financial
years.

3. Valuation roll certification

The valuer of a municipality must, after his appointment and until submission of the certified
valuation roll to the municipal manager, submit a monthly progress report to the municipal
manager on the valuation of the properties. He must then prepare a valuation roll of all the
properties in the municipality in the prescribed format. He will sign and certify the valuation
roll and submit it to the municipal manager within a prescribed period.

4. Right of objecting and appeal and its lodging processes

The MPRA stipulates that objections must be lodged with the municipal manager on the
prescribed objection form as per the Municipal Property Rates Regulations, gazetted in 2006,
and lodged within the specified timeframe. The objections must be concerning a specific
individual property and not against the valuation roll in general. In other words, the objector
may not object to the valuation of his property based on the municipal value of his neighbour’s
property but based on recent comparable sales.

The municipal valuation manager must submit the objections to the municipal valuer for his
consideration and decision based upon evidence brought by the objector. A municipal valuer
will consider the objections as per prescribed procedures and, based on the facts submitted
to him, decide to adjust the municipal value or add the property to the valuation roll.

A municipal valuer must, in writing, notify every person who has lodged an objection of his
decision, whether any adjustments were made to the valuation roll in respect of the property
concerned and whether his decision will be reviewed. The objector may ask for reasons after
paying an application fee. The lodging of an objection does not defer liability for payment of
rates beyond the date determined for payment.
An objector who is not satisfied with the decision of the municipal valuer has the right to
appeal against any such decision to a valuation appeal board. The appeal must be submitted
on the prescribed form as per the Municipal Property Rates Regulations, 2006. The appeal by
an objector must be lodged within 30 days after the date on the written notice informing him
of the municipal valuer’s decision.

A municipal manager must forward any appeal to the chairperson of the appeal board and
the chairperson of an appeal board must convene a meeting of the appeal board to consider
any appeals. A copy of the appeal must also be submitted to the municipal valuer
concerned.

5. Adjustments or additions to valuation rolls

A municipality must regularly, but at least once a year, update its valuation roll by causing
a supplementary valuation roll to be prepared (section 78) or amend the valuation roll
(section 79).

6. Supplementary valuations
A municipality must, whenever necessary, cause a supplementary valuation to be made in
respect of any rateable property that was –

a. incorrectly omitted from the valuation roll;

b. included in a municipality after the last general valuation;
c. subdivided or consolidated after the last general valuation;
d. of which the market value has substantially increased or decreased for any
reason after the last general valuation;
e. substantially incorrectly valued during the last general valuation; or
f. that must be revalued for any other exceptional reason.
g. of which the category has changed
h. the value of which was incorrectly recorded in the valuation roll due to a clerical
or typing error

The Supplementary Valuation roll (SV) takes effect on the first day of the month following
the completion of the public objection period. The objection period may not be less than 30
days from the date when the last of two notices appeared in the local newspapers. In the
notice, the public is invited to lodge an objection against the valuation roll within the
prescribed period should they believe their property is incorrectly valued. The supplementary
valuation roll remains valid for the duration of the municipality's current General Valuation
roll.

Supplementary valuations must reflect the market value with market conditions as at the
date of valuation of the municipality's General Valuation. In this way, all rates are levied based
on market values as of the same date.

The assessment rates based on a valuation as per the Supplementary Valuation roll become
payable from the effective date of the supplementary roll in the case where a property was
omitted from the roll, substantially incorrectly valued, or must be revalued.

When a property is included in a municipal area for the first time, for example the re-drawing
of the municipal borders, the rates become payable from the date that the property becomes
part of the municipality. With regards to a subdivision or consolidation of a property, the
effective date will be the date on which the property was registered in the Deeds Office.
In a case where the market value of a property has substantially changed, for example after
a fire, the date of the event will determine from when the assessment rates become payable.

A municipality must regularly amend its valuation roll to reflect any changes to the data on
the valuation roll, for example amended unit extents applicable at a sectional title scheme.

7. Valuation roll updates to the financial system

A municipality must regularly, but at least once a year, amend and update its valuation roll
due to changes in values as a result of reviews, objections, appeals and supplementary
valuations. This is necessary because the rates are based on the market value of the property
multiplied with the Rate in the Rand (or tariff) as per the Rates Policy.

8. Furnishing rates accounts

A municipality must furnish each person liable for the payment of a rate with a written
account specifying-

(a) the amount due for rates payable;

(b) the date on or before which the amount is payable;

(c) how the amount was calculated; and

(d) The market value of the property;

A ratepayer remains liable for the payment of the rates whether an account has been
received or not.

9. Compulsory review of decisions of a municipal valuer

If a municipal valuer adjusts the value of a property by more than 10 percent upwards or
downwards, he needs to furnish the valuation manager with written reasons and the valuation
manager will submit the valuation, together with supporting documentation, to the appeal
board for review. The appeal board will review the decision; and either confirm, amend, or
revoke the decision. If the decision is amended or revoked, the chairperson of the appeal
board and the municipal valuer must make sure that the valuation roll is adjusted accordingly.

10. Valuation appeal board and its procedures

The MEC for local government must, by notice in the provincial Gazette, establish an appeal
board, whose functions will be to hear and decide appeals against the decisions of a municipal
valuer concerning objections and to review the decisions of a municipal valuer.

The chairperson of the appeal board must be a person with legal qualifications and experience
in the administration of justice. No fewer than two and not more than four other members
must have sufficient knowledge of or experience in the valuation of property, of which at least
one must be a professional valuer.

Meetings of an appeal board are open to the public, but a board may adjourn in closed session
when deliberating an issue before the board. When an appeal board gives its decision, it may
issue an order concerning costs that it regards as just and equitable. An appeal board may
order any person whose appeal is in bad faith or frivolous to compensate the municipality for
costs incurred by the municipality in connection with the appeal.

11. MPRA council resolutions

An assessment rate is imposed by a municipality by a resolution passed by the municipal

council with a supporting vote of a majority of its members. The resolution levying rates must
be annually promulgated within 60 days from the date of the resolution, by publishing the
resolution in the Provincial Gazette. The resolution must contain the date on which the
resolution was passed; differentiate between categories of properties; and reflect the cent
amount in the Rand rate for each category of property, such as residential and commercial.

12. Property rating policies

The Rates Policy must be adopted on an annual basis to ensure compliance with the
municipality’s strategic objectives and with the applicable legislation. The rate-in-the-rand (or
tariff) to be taxed against property values are determined by the municipal council around
March each year, together with the tabling of the Budget. This will enable the municipality to
fund municipal services as outlined in its Integrated Development Plan. The Rates Policy is
prepared to support the Municipal Budget.
The Rates Policy is concise and focusses mainly on five subjects as provided for in the MPRA:
a) Categories of Property
The City levies different rates on different categories of properties which are determined
according to the use of the property. The City has identified 12 categories of property in
accordance.

The City has identified the following categories of property under Section 8 and 93A of the
Act:
a) Residential properties;
b) Business and commercial properties;
c) Industrial properties;
d) Agricultural properties – excluding lifestyle farms (no bona fide farming);
e) Mining properties;
f) Properties owned by an organ of state and used for public service purposes.
g) Public Service Infrastructure properties;
h) Public Service Infrastructure (phase-out);
i) Properties owned by Public Benefit Organisations and used for specified public
benefit activities;
j) Properties used for multiple purposes -
k) Vacant land;
l) Place of worship.

b) Criteria for Applying Different Levies for Different Categories of Properties

The rate charged as a rate-in-the-rand for residential properties is the base rate and the rates
charged for all other categories of properties are reflected as ratios to the residential rate.
The rate charged as an amount-in-the-rand for Residential Properties is the base rate and
the rates charged in respect of all other categories of properties are reflected as ratios to the
residential rate.

The ability of owners of Industrial and Commercial Properties to recover part of their
operating costs via lower income tax as well as their ability to recover such costs from their
own customers supports the rate differentiation. These property categories together with
vacant land and mining properties will be rated at double the residential property rate-in-the-
rand.

In general, limited rate-funded services are supplied to Agricultural Properties. When the
contribution of agriculture to the culture of the local economy is considered, as well as the
extent to which agriculture assists in meeting the service delivery and development obligations
of the City, plus the contribution of agriculture to the social and economic welfare of farm
workers, the City determined the rates ratio for Agricultural property at 1:0.20, which is lower
than the 1:0.25 to the residential rate proposed by the MPRR on Rate Ratio for Agricultural
properties. However, the City may rate Agricultural property at any ratio of choice below the
prescribed rates ratio of 1:0.25.

Ratepayers contribute to national finances through various taxes for national and provincial
government to enable them to provide the necessary services. As the MPRA already provides
relief in respect of public service infrastructure, properties owned by an organ of state and
used for public service purposes should not receive any further benefit. The ratio is therefore
twice that of the residential rate.

CATERGORY RATES RATIOS

Residential Properties 1:1
Industrial Properties 1:2
Business and Commercial Properties 1:2
Agricultural Properties 1:0.2
Mining Properties 1:2

Properties owned by an organ of state and used for

1:2
public service purposes
Public Service Infrastructure (PSI) 1: 0.25
1:0.025 (=10% of phase-in;
Public Service Infrastructure – phase out final year of phase-out)
Properties owned by public benefit organisations (PBOs)
1:0.25
and used for specified public benefit activities
Ratio will be determined
Properties used for Multiple Purposes*
as per allocation
Vacant Land 1:2
Place of Worship 1:0
c) Exemptions, Reductions, and Rebates
The City may, in terms of the criteria set out in this Policy, exempt a specific category of
property owners, or the owners of a specific category of properties, from the payment of a
rate levied on their property; or grant to a specific category of property owners, or the owners
of a specific category of properties, a rebate or reduction in the rates payable in respect of
their properties.

In terms of the MPRA, the rates ratio for Public Service Infrastructure (PSI) property is
1:0.25.

In terms of section 93A of the MPRA, the levying of rates on certain PSI properties is
being phased out over a period of five financial years as from 1 July 2015. The City is
accordingly prohibited from levying a rate exceeding an amount of 10% in respect of these
Public Service Infrastructure (PSI) properties.

The Municipal Property Rates Regulations on Rate Ratios stipulates that property owned by
Public Benefit Organisations (PBOs) and used for public benefit activities, such as
Welfare and Humanitarian, Health care, Land and housing, Education and Development, etc.
will be rated at no more than 25% of the residential property rate-in-the-rand. The public
benefit activities are divided into 11 categories and listed in Part 1 of the Ninth Schedule of
the Income Tax Act, 58 of 1962. All other property owned by PBOs that do not fall within
the definition outlined in the MPRR will be rated at the business and commercial rate.

In cases where the Municipal Valuer considers it reasonable to apply the Multi-Purpose
category, which is for properties that are used for multiple purposes and thus fall within
different categories of property, the Municipal Valuer will calculate an apportionment of value
for each distinct use of the property and this will be applied for billing at the appropriate and
applicable rates.

For the purposes of determining the use of a property for a Place of Worship, the property
must be used by a group of people and/or religious community to perform acts of religious
devotion and the property must be used for this sole purpose. This will include a property
rented for this purpose and are solely liable for the payment of rates in terms of a formal lease
agreement with the registered owner of the property. The formal lease agreement must be for
12 months or longer.

The religious community must have been in existence for at least three years and have regular
meetings at the property. The Municipal Valuer may request any information from either the
landlord or the tenant to establish the admission requirements for this property category and
its related rates rebate.

The information that may be requested may include:

 a copy of any founding document / constitution;
 affidavits from its leader and up to five members setting out the length of time the
community has been meeting, the size of the community and the leadership structure of the
community;
 certified copies of the financial statements / records of accounts of the community; and
 certified copies of bank statements in the name of the religious community.

d) Rates Relief Applicable to the Category of Properties

As an important part of the City’s indigent relief measures aimed primarily at alleviating
poverty amongst those persons owning low-value properties, the City will not levy assessment
rates on the balance of the market value up to a maximum amount of R285 000 in respect of
residential properties assigned in the Valuation Roll.

e) Categories of Property Owners

The City has determined five categories of owners of property for the purpose of exemptions,
rebates and reductions in accordance with section 15 (2) of the MPRA.
The City will not levy an assessment rate on a residential property with a market value of less
than R300 000 (R15 000 as per the MPRA rebate and another R285 000 rebate as per the City
of Cape Town Rates Policy) as per the Valuation Roll. This reduction in assessment rates plays
an important part in the City’s indigent (poverty) relief measures that are aimed primarily at
alleviating (easing) poverty amongst those persons owning low-value properties. The
residential rebate is only applicable if more than 60% of the extent of a house or the sectional
title unit is being used for residential purposes. The rebate applies to whether the property
is in Constantia or Khayelitsha.