LOCAL GOVERNMENT PROPERTY RATES BILL Basis for valuation for the City of Johennesburg: QUESTION 1 The basis at this stage is Site Rating only (land market value). QUESTIN 2 The value of improvement is also recorded in the valuation roll (market value). QUESTION 3 As mentioned earlier on we use site rating only.

Property Rates Bill continued QUESTION 4 There is a minimum impact in moving to flat rate based on land and improvement, as the rate in the rand will have to be adjusted to obtain same amount of revenue needed by Council. Council in favour of flat rating in line with SALGA. QUESTION 5.1 The impact of the Bill on poor and and lower middle classes will be minimum, except that current exemption of R20 00.00 might be exceeded by adding improvement. (Proposed bill minimum R15 000.00) QUESTION 5.2 The social mobility of people will be affected by the rating of improvement, affordability takes place

Property Rates Bill continued QUESTION 5.3 The Bill encoursges people to move to where they can afford to pay in line with the improvements of their building QUESTION 6 Flat rating and Site rating are administratively more or less the same, the only difference is that the former rates both land and improvement and the latter rates the land only QUESTION 7 The icidence has shifted on the higher end of the market owing to the higher value of improvements.

Property Rates Bill continued QUESTION 9 We have established social package which exempts the rating of the first couple thousand of rands (currently R20 000.00 land value only), there is also rebate for households and further remission for pensioners. QUESTION 10 All government buidings are rated (land value) and a 20% rebate is granted.Infrastructure not rated. QUESTION 11 Charitable and welfare organisations are given grant-in-aid in lieu of assessment rates and places of worship are exempt from rating.

Property Rates Bill continued QUESTION 12 Agricultural land rated in terms of 1977 ordinance but insignificant. Differential rebates granted up to 90% (depending on size of farm and element of commercial involvement) A move to equate sectional title rebates to house hold rebates (now completed).