Effect of Property Rates Legislation CIGFARO WESTERN CAPE BRANCH SEMINAR 5 JUNE 2017

Disclaimer These are views from a bean counter turned debt collector This is not a legal opinion What works for Cape Town may not work for other municipalities Apply your own mind Apply your own socioeconomic situations Seek legal advice when considered necessary

Farm Properties not used for any purposes Included in MPRA prior to MPRAA 2014 Prior to MPRAA Council determined the categories (MAY) MPRAA 2014 – MUST (effective 1 July 2022) Regulations refers to this category Minister had no legal right to force this category on a municipality SC opinions for and against

SYSTEMS ACT SECTION 118 Clearance Certificate Validity period of 60 days Could make that longer to assist clients Take deposits for validity of Clearance Certificates Be reasonable When challenged, back down to 60 days If validity expires, insist on a new application from scratch

Wasted expenditure Kwazulu-Natal Local Division of the High Court Legal action following the awarding of a tender Legal opinion that the tender should be disqualified BEC directed that the tender be considered Decision found to be not merely irrational but bizarre Staff refused to accept accountability and showed no remorse Consequences of unconstitutional conduct not for ratepayers Recovered 50% of the costs from officials involved Those who acted correctly excluded from the costs order

New Developments – Be Aware Fruitless and wasteful expenditure – society’s moral outrage Tax resistance is a legitimate expression of dissatisfaction Gauteng High Court decision re Eskom Client may pay Eskom directly bypassing the municipality Tax Laws are not Always Fair – SCA ruling Religion- commercialisation to be curbed Wealth, land and property tax mooted Two spheres of Government using a property tax Collection agent One account in arrears - Sale-in-execution

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